Auto Theft Claims Costs Hit $1.5 Billion in 2023

Auto Theft Claims Costs Hit $1.5 Billion in 2023

Recent data from the Insurance Bureau of Canada (IBC) found that auto theft remains a significant problem across Canada. On Feb. 21, 2024, the Government of Canada announced a federal investment of $15 million to combat auto theft. However, according to the latest IBC data, auto theft appears to be worsening, and more may be needed to tackle this persistent threat.

IBC Data Explained

The latest IBC dataset revealed that claims costs for auto theft hit $1.5 billion in 2023, a 20% increase from 2022, an already record-high year. Moreover, auto theft claims costs rose by 254% between 2018 and 2023, a testament to the extent of the problem. Ontario has been particularly impacted by auto theft, with claims costs rising by 524% between 2018 and 2023. “These numbers indicate that the auto theft crisis persists, disrupting the lives of Canadians and causing them concern and trauma,” said IBC Vice President for Strategy Liam McGuinty.

Next Steps

According to the IBC, significant federal and provincial efforts are necessary to tackle the auto theft issue. These include modernizing Canada’s outdated vehicle safety standards and finding ways to stop the outflow of stolen vehicles from Canada’s ports.

In the meantime, both individuals and organizations must take steps to protect their vehicles. These tips may help:

  • Deter thieves. Simple measures to deter criminals include hiding valuables out of sight and closing and locking all windows and doors when parked. Additionally, individuals mustn’t leave keys in their vehicles or leave their vehicles running when they’re not in them, even momentarily.
  • Add multiple layers of protection. A vehicle immobilizer that can prevent the engine from running when a key isn’t present may be a worthwhile investment. Moreover, individuals and employers could consider products that block the signal transmitted by keyless entry systems, such as a Faraday pouch.
  • Stay informed. Individuals and employers should stay abreast of new or emerging auto theft techniques to remain proactive.

Above all, robust insurance can provide a financial shield against unexpected events like auto theft.

To learn more about vehicle safety and car insurance or if you have any questions about your auto insurance premium, contact CMB Insurance at 780.424.2727