As car theft decelerates, insurance claims are down in Canada
New data by the Insurance Bureau of Canada released Wednesday showed that in the first six months of the year, there were 17,647 insurance claims for auto theft, a 19 per cent decrease when compared with 2023.
Vehicle thefts in Canada have been slowing down, leading to a reduction in insurance claims and costs. According to new data from the Insurance Bureau of Canada (IBC) released on Wednesday, there were 17,647 insurance claims for auto theft in the first half of the year, a 19 per cent drop compared to 2023.
Nationwide, car theft claims from January to June totaled over $544 million, marking a roughly 29 per cent decline from the same period last year. This decrease aligns with a 17 per cent reduction in vehicle thefts during the first half of the year, as previously reported by the non-profit Équité Association.
Équité credits the positive trend to increased investments, public awareness, and better information-sharing. "Concerted actions by law enforcement, insurers, governments, and drivers to combat theft are showing results, but more remains to be done," said Liam McGuinty, IBC’s vice-president of strategy, in a statement.
Despite this year's decline, IBC noted that auto theft claims and incidents remain above "historical levels." Over the past decade, auto theft claims have risen by 138 per cent, and the value of those claims has surged by 442 per cent. McGuinty warned that this increase is driving up insurance premiums for drivers and impacting public safety.
"While theft frequency dropped slightly in the first six months of 2024, the problem remains significantly above historical trends," he added. Experts predict that as the issue persists, drivers may continue to see increases in their insurance premiums.
A survey by Ratehub.ca in May revealed that nearly half (48 per cent) of respondents reported experiencing a "significant" rise in auto insurance premiums recently.
In terms of where claims have decreased, IBC analyzed data from Ontario, Quebec, Alberta, and the Atlantic provinces, excluding Saskatchewan, Manitoba, and British Columbia due to unavailable data. Quebec saw the largest reduction in insurance claims for auto theft at 44 per cent, followed by Ontario at 16 per cent. However, Nova Scotia experienced a 27 per cent rise in claims, while New Brunswick and Alberta saw increases of 14 per cent and 0.7 per cent, respectively. These trends mirror Équité’s data, which showed an 11 per cent jump in vehicle theft in the Atlantic provinces.
Regional differences are attributed to the opportunistic behavior of car thieves, who may be shifting their focus to provinces like Alberta and the Atlantic regions, where efforts to combat auto theft have been less intense than in Ontario and Quebec.
Over the past year, efforts to address vehicle theft have ramped up, with increased collaboration between the federal government, law enforcement, border officials, and industry stakeholders. In February, a national summit on auto theft was held in Ottawa, followed by the federal government announcing an action plan in May. The plan includes funding and measures introduced after the summit, as well as Criminal Code changes, such as harsher penalties and new offenses targeting car thieves and the tools they use.
Transport Canada is currently conducting an open consultation to review and update vehicle safety standards in Canada. Meanwhile, IBC is pushing for immediate action to prevent stolen vehicles from being shipped overseas, advocating for stricter export regulations and better screening at ports.
