“Finally!” exclaimed George Iny, president of the Automobile Protection Association (APA), upon learning of the $71 million lawsuit filed by Beneva and L’Unique General Insurance against three automakers. These insurers accuse Toyota Canada, Honda Canada, and Fiat Chrysler Automobiles Canada of flaws in their vehicles’ security systems that make their models highly vulnerable to theft.
To the best of George Iny’s knowledge, who has led the APA since 1987, this is a first in Canada. He emphasizes that it is a “significant” lawsuit that he is following closely. He also believes that this could encourage other insurers to follow Beneva and L’Unique’s example.
“There’s an element of example to this lawsuit: no one dared to do it before, but once it’s done and it shows that it can work, others may jump on board for economic reasons,” he told the Insurance Portal.
According to the Groupement des assureurs automobiles (GAA) – of which all auto insurers doing business in Quebec are members – vehicle thefts cost Quebec insurers $171 million in 2024.
As recently reported by the Insurance Portal, Toyota, Honda, and Fiat Chrysler are contesting the lawsuit.
Furthermore, it's worth noting that last year, the Superior Court authorized a class action lawsuit initiated by a Quebec policyholder who was the victim of a theft against 13 automakers. Like the insurers, the class action is accusing them of deficiencies in their anti-theft systems.
If the manufacturers were to pay the deductible
The theory in insurance, George Iny points out, is that if the risk is higher, the premium is increased. Ultimately, it is policyholders who pay the price for all these thefts on a collective basis, he contends.
“When manufacturers are criticized for their vehicles being too easy to steal, the response we sometimes get is: ‘We’re not the ones stealing the vehicles; the thieves are.’ For them, it’s difficult to imagine that they could be held responsible for the actions of a third party,” he says.
“It’s obvious that if every time a Toyota vehicle was stolen, “Toyota had to pay the deductible, the legal costs, and the costs of capturing the thieves, it would have been resolved quickly,” he says.
Thefts aren’t reducing sales
In their originating application for damages filed with the Civil Division of the Superior Court of Quebec, Beneva and L’Unique argue that thefts help maintain a sales cycle that benefits manufacturers, as stolen vehicles are replaced by insurers.
“It’s an argument we’ve been hearing for decades,” comments George Iny. “It’s true that when a vehicle is stolen, it leads to the sale of another, and currently, this doesn’t harm their reputation. The fact that Toyotas are the most stolen vehicles in Quebec doesn’t diminish buyers’ interest in the brand. On the contrary, it’s breaking sales records,” he adds.
Toyotas better equipped against theft… but not in Canada
Yet, Toyota, the main manufacturer targeted by the two insurers, offers models better equipped against theft. The problem is that they are available in England, but not in Canada.
“This means Toyota has made a choice for Canada,” says George Iny. He adds, “At the APA, we believe that a manufacturer selling in the Canadian market is aware that its anti-theft systems are inadequate, that it has technological solutions to offer, and that it has an obligation to do something about it.”
When Toyota Canada places its order in Japan for tens of thousands of vehicles, he adds, it could choose from the standard equipment options with the best anti-theft protection. And if none are available, he points out that the optional system offered in England is superior to what is found here.
According to George Iny, installing better anti-theft systems could cost only “$15, $20, or $30” more per vehicle during manufacturing, but some manufacturers don’t do it, claiming it would make them less competitive.
A lawsuit that could change the game
“It’s clear this lawsuit will be a game changer,” says Iny regarding the legal proceedings initiated by Beneva and L’Unique.
Manufacturers who consider a few dozen dollars for a better anti-theft system too expensive will now assess that a lawsuit with an unknown outcome could lead to greater financial losses, notes Iny.
He expects this lawsuit, filed in 2026, to last for years, but that automakers will take it into account. According to him, it may lead to changes in behavior among some, prompting them to offer a level of protection in Canada equivalent to that offered by European manufacturers.
