Yahoo Finance 'Lucrative targets': Canada's auto theft claim costs jump 254% in 5 years, report says
Insurance claims for replacing stolen vehicles in Canada soared to record-breaking $1.5B last year
Auto theft insurance claims for replacing stolen vehicles in Canada skyrocketed to a record-breaking $1.5 billion last year, according to latest data from the Insurance Bureau of Canada (IBC).
The industry association says 2023 marks the second year where costs topped $1 billion, averaging $556 million annually between 2018 and 2021. Last year’s increase represents a 20 per cent jump from 2022, which previously held the record.
“These numbers indicate that the auto theft crisis persists,” Liam McGuinty, IBC’s vice-president of strategy, stated in a news release on 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.”
Canada’s most populous province has been hit the hardest, according to IBC. Ontario auto theft claim costs climbed by 524 per cent between 2018 and 2023. The association says it will release more provincial data in the coming weeks.
IBC says luxury and high-end vehicles from Canada are desirable in illegal international markets, making them “lucrative targets” for thieves.
“In many cases, stolen vehicles are exported to these markets by domestic and international criminal organizations,” the report stated. “The proceeds are then used to finance drug trafficking, arms dealing and international terrorism.”
IBC says auto theft should therefore be tackled at the federal 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“Attention needs to be paid to modernizing Canada’s outdated vehicle safety standards, which were last updated in 2007, and stopping the outflow of stolen vehicles from Canada’s ports,” McGuinty added.
"More needs to be done, including at the national level."
Jeff Lagerquist is a senior reporter at Yahoo Finance Canada. Follow him on Twitter @jefflagerquist.
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