Car theft crisis spreads to Canada, owners of stolen vehicles also face insurance increases
The car theft crisis in Canada has affected millions of Canadians - even those whose cars were not stolen.
According to the Insurance Canada Board (IBC), insurance companies paid over $1.5 billion in claims for replacing stolen vehicles in 2023, marking the second consecutive year that car theft claims have exceeded $1 billion. The number for 2023 has increased by 254% compared to the nearly $440 million claimed in 2018.
To compensate for these losses, insurance companies are increasing premiums for customers, especially those who own the most frequently stolen vehicles.
Daniel Ivans, an insurance expert at RATESDOTCA, stated in a statement to CTV News that the actions of the insurance company are foreseeable consequences, and ultimately, these responsibilities will be borne by the car owners.
Image source: CTV News
The high rate of car theft has led insurance companies to try to balance unprecedented claims costs, resulting in continuously rising insurance premiums. For drivers who frequently have stolen vehicles, it is more important to purchase car insurance from three different insurance companies, as prices may vary greatly depending on the claim costs and the way they calculate risk
Which vehicles are prone to theft?
According to RATESDOTCA data, owners of Honda Accord, CR-V or Civic, Ford F-150, Toyota Highlander or RAV4 will face a comprehensive insurance premium cost 37% higher than the average level.
Last February, the federal government announced in a separate funding announcement that it would invest nearly $43 million to combat the increasingly rampant car theft. Public Safety Minister Dominic LeBlanc stated that assisting local police in combating car theft plays a "critical role".
The car theft crisis in Canada has put pressure on drivers' insurance premiums, "said Liam McGuinty, Vice President of Strategy at the Insurance Board of Canada (IBC)." With the increasing number of car theft cases, related costs are also increasing
Where did the theft occur?
Most car theft cases occur in Ontario.
According to IBC data, in 2022 alone, the province accounted for nearly $700 million of the $1 billion in theft claims, an increase of nearly 300% from 2018. The following year, Ontario became the first province to achieve a cost of $1 billion for car theft claims.
In May 2023, the Ontario government announced that it would provide $51 million to help police dismantle the "organized crime network" that planned theft.
According to Ontario statistics, car theft cases in the province increased by 72% from 2014 to 2021, and by another 14% in 2022.
Source link:
https://www.ctvnews.ca/autos/drive-one-of-these-vehicles-you-may-pay-37-per-cent-more-than-average-insurance-costs-due-to-thefts-1.6906181