Canada’s auto theft crisis appears to be getting worse, with auto theft claims exceeding $1 billion for the second year in a row, according to new data from the Insurance Bureau of Canada (IBC).
The cost of insurance claims to replace stolen vehicles in Canada in 2023 soared to a record $1.5 billion, according to IBC data released Thursday. This is up from an estimated $1.2 billion in 2022.
“To put this in perspective, from 2018 to 2021, auto theft claims costs averaged $556 million annually,” IBC said in a press release.
Liam McGuinty, vice president of strategy at IBC, said the latest figures demonstrate the severity of the problem affecting Canadians and the heavy burden on law enforcement and court personnel to deal with these crimes. He said there was.
“Canada’s auto theft crisis is also putting pressure on drivers’ insurance premiums. As auto thefts continue to rise, so do the associated costs,” McGuinty says. “Auto theft is not a victimless crime.”
Nationally, auto theft insurance claims increased by 254% between 2018 and 2023. Auto theft losses in 2023 amounted to approximately $1.55 billion, an increase of approximately 20% from the previous record in 2022.
The problem is most acute in Ontario, where auto theft insurance claims increased by a staggering 524% between 2018 and 2023. “IBC plans to release state-by-state data on auto theft insurance claims in the coming weeks,” the association reports.
The number of auto theft insurance claims nationwide last year totaled nearly 50,000, up from more than 45,000 in 2022, according to IBC data. The increase rate from 2018 to 2023 was 56%.
New high-end luxury cars often command high prices, in part due to their popularity on the international underground resale market. Stolen vehicles are often exported to these markets by domestic and foreign criminal organizations. IBC reports that the proceeds will be used to fund drug trafficking, arms trafficking and international terrorism.
“Despite significant investments by federal and local governments aimed at mitigating the crisis, this new data suggests further steps need to be taken to make it more difficult to steal, transport and export vehicles. ” states the IBC. “To that end, IBC is calling for immediate action to stop stolen vehicles from leaving the country and prevent them from being stolen in the first place.”
McGuinty reiterates the need for a “whole of society” approach to tackling car theft.
“IBC recognizes the efforts that governments have made to date to combat vehicle theft, but more needs to be done, including at the national level,” he says. “Attention must be paid to modernizing Canada’s outdated vehicle safety standards, which were last updated in 2007, and stemming the flow of stolen vehicles from Canadian ports.”
IBC said it looks forward to this important next step in the federal government’s action plan to combat auto theft and looks forward to working with all levels of government.
In February, the federal government concluded a national summit on combating auto theft, pledging to develop a detailed plan in the winter.
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