Auto theft crisis worsens with insurance claims surpassing $1.5 billion

Canada is facing a worsening auto theft crisis, with insurance claim costs surpassing $1.5 billion for the first time, according to new data from the Insurance Bureau of Canada (IBC). The IBC reported that insurance providers processed 49,679 claims for stolen vehicles in 2023, with costs exceeding $1.54 billion for the year. This represents a 56% increase in the number of claims since 2018 and a staggering 254% increase in costs.

Liam McGuinty, vice-president of strategy at the IBC, expressed concern over the persistent auto theft crisis, stating that it disrupts the lives of Canadians and places a heavy burden on law enforcement and courtroom personnel. The high rate of theft also leads to increased insurance premiums for car owners, with some vehicles facing premium spikes of more than 25% and a $500 high-theft surcharge.

The province most affected by auto theft is Ontario, where claim costs have surged by 524% since 2018, surpassing $1 billion. Ontario Transportation Minister Prabmeet Sarkaria revealed that a car is stolen in Ontario every 14 minutes. In response to the escalating crisis, the Ontario government has announced harsher penalties for convicted offenders, including a lifetime driver’s license suspension for repeat offenders.

To combat the rising trend of auto theft, the federal government has allocated $15 million in funding for police agencies to enhance enforcement efforts. Despite these measures, the IBC emphasized the need for additional action to prevent stolen vehicles from being exported internationally. McGuinty called for modernizing Canada’s outdated vehicle safety standards and halting the outflow of stolen vehicles from the country’s ports to address the ongoing crisis.