Auto theft in Canada continues to soar above historic ranges, whilst current efforts to curtail vehicle thefts start to indicate outcomes, says newly launched knowledge from Insurance coverage Bureau of Canada (IBC).
Total, the nation noticed a 19% lower in insurance coverage claims for auto theft within the first half of the yr, IBC reported in a press release Wednesday. However regardless of this dip, auto claims have risen 148% over the previous decade, with the worth of these claims skyrocketing a whopping 442% between 2014 and 2024.
“Concerted actions by regulation enforcement, insurers, governments and drivers to fight theft are displaying outcomes, however extra stays to be completed,” says IBC’s vice chairman of technique, Liam McGuinty. “Canada’s auto theft charges have soared within the final 10 years, putting stress on drivers’ insurance coverage premiums, compromising public security, and inflicting Canadians concern and trauma.
“Whereas theft frequency dropped barely within the first six months of 2024, the issue stays considerably above historic traits.”
A decade in the past, Canada-wide auto theft claims counts totalled 7,406 within the first half of 2014, with claims prices of greater than $100.5 million. Within the first half of 2023, claims reached 21,907, at a price of practically $764.6 million. By the primary half of 2024, the overall variety of claims dropped 19.4%, or greater than 4,000 to 17,647, whereas claims prices decreased by practically $220 million to $533.7 million. That’s a 28.8% drop.
However probably the most dramatic change was between 2014 to 2024, with claims up greater than 10,000, or 138%. Claims prices had been up 442% from about $100.5 million within the first half of 2014 to $544.7 million within the first half of 2024.
Provincial variations
As previously reported by Canadian Underwriter, there are important variations in auto theft between provinces.
Ontario and Quebec skilled decreases within the variety of theft claims within the first half of 2024, down 16% and 41%, respectively, year-over-year.
Alberta noticed a slight enhance of 0.7% year-over-year, whereas New Brunswick’s theft claims rely elevated 14% year-over-year and Nova Scotia was up 27%. In Alberta, nonetheless, the worth of auto theft claims has elevated by 11% since 2023 and by 179% over the past decade.
“Specialists credit score these regional variations to the opportunistic nature of automobile thieves, who could also be shifting their focus away from provinces like Ontario and Quebec, the place regulation enforcement has invested considerably in combatting auto theft, towards western and Atlantic provinces,” IBC says.
New, high-end luxurious autos proceed to be fashionable targets for thieves, due partially to their desirability in unlawful worldwide markets. In lots of circumstances, stolen autos are exported to those markets by home and worldwide prison organizations, IBC says. The proceeds are then typically used to finance drug trafficking, arms dealing and worldwide terrorism.
IBC factors to the constructive impacts of federal and provincial investments in serving to fight theft, however highlights the necessity for continued motion. IBC has been calling for quick motion to cease stolen autos from being shipped overseas, to tackle fraudulent ‘re-VINing’ of vehicles and to stop autos from being stolen within the first place by means of an replace to Canada’s motorcar security requirements.
“Combating auto theft requires a whole-of-society strategy,” McGuinty says. “Now will not be the time to take our collective foot off the accelerator on this combat.”
The worth of insurance coverage claims for auto theft hit a record $1.5 billion for the primary time ever in 2023. That was up from about $1.2 billion in 2022 — additionally a file on the time.
Characteristic picture by iStock.com/Flex Level Safety
