Auto theft insurance claims for replacing stolen vehicles skyrocketed to a record-breaking $1.5 billion in 2023, according to new data released by the Insurance Bureau of Canada.
According to the data, the insurance claims were up 19 per cent in 2023 from 2022, an increase of nearly $250 million and breaking 2022’s record. It is the second year in a row that auto theft claims have been over $1 billion, whereas between 2018 and 2021, they averaged $556 million annually, according to the Insurance Bureau of Canada (IBC).
Auto theft claims costs have increased 254 per cent between 2018 and 2023, the agency said.
“These numbers indicate that the auto theft crisis persists, disrupting the lives of Canadians and causing them concern and trauma. It places a heavy burden on law enforcement and courtroom personnel who work tirelessly to address these crimes,” said Liam McGuinty, IBC’s vice-president of strategy, in a statement released Thursday.
“Canada’s auto theft crisis is also placing pressure on drivers’ insurance premiums — as auto theft continues to increase, so do the associated costs. Auto theft is not a victimless crime.”
Bryan Gast, vice president of the investigative services division at Équité Association, told Global News that 2023 was a “bad year” for auto thefts and he is not surprised by IBC’s numbers.
However, he said that a lot of measures have been put in place since late last year that are giving him hope for improvement in the situation.
Those measures include dedicated prosecutors for auto theft in Ontario, a boost of $28 million to Canadian Border Services Agency funding to combat exporting stolen vehicles, a federal summit on auto theft that happened in February, and more collaboration between police, provinces and the federal government.
Already, Gast said they haven’t seen a spike in auto theft activity in 2024 like they saw between 2022 and 2023.
“I’m cautiously optimistic that we’re starting to see some positive effects from the measures that have been put in place,” he said. “There are some early indications 2024 is definitely looking better than 2023.”
However, Toronto Police Chief Myron Demkiw said in March that a car is stolen every 40 minutes in the city and the numbers are rising.
IBC says that the auto theft crisis is most significant in Ontario, where auto theft claims costs increased 524 per cent between 2018 and 2023, surpassing $1 billion for the first time in 2023.
IBC says its new data shows more action must be taken against auto theft and is calling for “immediate action” to stop stolen vehicles from being shipped overseas and stolen in the first place.
“Insurers have taken proactive steps to help consumers combat auto theft, but they can’t do it alone. We need a whole-of-society approach,” McGuinty said.
“IBC recognizes the efforts undertaken by governments to date to fight auto theft, but more needs to be done, including at the national level. Attention needs to be paid to modernizing Canada’s outdated vehicle safety standards, which were last updated in 2007, and stopping the outflow of stolen vehicles from Canada’s ports.”
— with files from Global News’ Isaac Callan.
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