The Insurance Bureau of Canada (IBC) continues to sound the alarm about auto theft in Canada, releasing new data which shows auto theft insurance claims topping $1.5-billion in 2023.
This is the second year in a row that auto theft claims costs have topped $1-billion. The IBC says this places a heavy burden on law enforcement, courtroom resources and upward pressure on insurance premiums. “As auto theft continues to increase, so do the associated costs. Auto theft is not a victimless crime,” says Liam McGuinty, vice president of strategy with the IBC.
Comparatively speaking, between 2018 and 2021 auto theft claims averaged $556-million annually. Nationally, between 2018 and 2023, auto theft claims costs increased by 254 per cent. In 2023, the $1.5-billion figure was an increase of nearly 20 per cent over the previous record set in 2022.
“The crisis is most significant in Ontario, where auto theft claims costs increased by 524 per cent between 2018 and 2023, surpassing $1-billion for the first time in 2023,” the association adds in a statement. “IBC will be releasing province-specific data on auto theft claims costs in the coming weeks.”
Call for action
The IBC in its release, calls for governments to take immediate action to stop stolen vehicles from being shipped overseas and to prevent vehicles from being stolen in the first place by updating vehicles safety standards, last updated in 2007.
“Insurers have taken proactive steps to help consumers combat auto theft, but they can’t do it alone. We need a whole-of-society approach,” McGuinty added. “IBC and its members look forward to the important next steps anticipated in the federal government’s action plan to combat auto theft.”
By the numbers, total claims increased 56 per cent between 2018 and 2023, or 10 per cent year-over-year in 2023. Total claims costs – 254 per cent nationally over the previous five years – also jumped 19 per cent year-over-year between 2022 and 2023.
