In response to the escalating auto theft crisis in Canada, insurance providers are proactively implementing measures to safeguard consumers and their vehicles.

Amanda Dean, Interim Vice-President, Ontario, Insurance Bureau of Canada (IBC), emphasized the importance of a collective approach in tackling auto theft. She stated, “Fighting auto theft requires a whole-of-society approach – and Canada’s insurers are proudly doing their part.” However, she stressed that the insurance industry alone cannot address this crisis, and collaboration with governments, law enforcement agencies, and auto manufacturers is crucial.

In Ontario alone, theft claims costs surged from approximately $160 million in 2018 to around $700 million in 2022, marking a staggering 329% increase. Despite the substantial rise in claims payouts, insurers are actively encouraging consumers to take proactive steps to protect their vehicles from theft and manage their insurance premiums effectively.

Many insurance companies are now subsidizing the installation costs of approved aftermarket tracking devices, typically priced at several hundred dollars per vehicle. While insurers may apply surcharges to vehicles at the highest risk of theft, they often waive this surcharge if policyholders follow insurer-recommended steps to enhance their vehicle’s security.

There is the significance of empowering drivers with information to protect themselves and reduce their auto insurance premiums. This can involve installing anti-theft or tracking devices, or choosing vehicles that are less susceptible to theft.

Insurers consider various factors when calculating premiums, including the policyholder’s driving history, location, vehicle type, and theft frequency for the specific make, model, and year of the vehicle. Vehicles that are harder to steal and cheaper to repair typically have lower insurance costs.

To make informed decisions when purchasing a vehicle, individuals are encouraged to consult with their insurance representatives and review Équité Association’s list of the top 10 most stolen vehicles in Canada. The auto insurance industry utilizes the Canadian Loss Experience Automobile Rating (CLEAR) system to categorize vehicles into different risk groups, influencing auto insurance premiums. Vehicles with lower CLEAR rankings tend to indicate a reduced theft risk, often due to the inclusion of robust anti-theft devices during manufacturing.

 

IBC and its member companies are committed to collaborating with all levels of government, Équité Association, and other key stakeholders to address the ongoing auto theft crisis in Canada. As criminals continuously evolve their theft techniques, it is imperative for all stakeholders to take immediate action to protect Canadian drivers.

 

Feel free to get in touch with one of our agents if you have any inquiries or concerns or for your stolen car claim.

Source: IBC