Canadians to pay higher car insurance rates due to auto theft (2024)

Auto theft is on the rise in Canada, and has been for some time.

According to a recent report from Equite Association, an insurance industry group, vehicle theft rose 50 per cent in Quebec year over year, and 48.3 per cent in Ontario, with smaller rises in Atlantic Canada (34.5 per cent) and Alberta (18.3 per cent). Recovery rates were also lower in Ontario and Quebec, probably because many stolen vehicles in those provinceswere shipped overseas.

Article content

Article content

Numbers from the Canadian Finance and Leasing Association say auto theft in Toronto has tripled since 2015, and that a vehicle is stolen every six minutes in Canada, at a cost of a billion dollars a year.

Not surprisingly, insurance companies have responded by raising rates, sometimes across the board, and sometimes on the makes and models of car most likely to be stolen.

Who pays for theft?

“It’s important to note these dramatic losses have fallen squarely on the shoulders of Canada’s insurers,” the Insurance Bureau of Canada said in a recent statement on the problem. “At the end of the day, premiums follow claims costs.”

In other words, insurers pass the costs along to consumers. Rates.ca, an insurance price aggregate website, notes that, for cars that are most often stolen, premiums have gone up by 25 to 50 per cent over the last two years.

As an example, it says that a 35-year-old male in Toronto with no prior convictions paid 26 per cent more to insure his 2020 Honda CR-V (the most stolen make and model in the city) in 2023 than the previous year.

Article content

Article content

Some insurers, it adds, have introduced a $500 high-theft vehicle surcharge on some models.

What can drivers do?

If possible, don’t drive a vehicle that’s likely to get stolen. In addition to the Honda CR-V and Civic, common targets of theft include the Dodge RAM 1500, the Ford F-150, the Lexus RX, the Toyota Highlander and the Jeep Grand Cherokee, according to Rates.ca.

At the other end of the theft scale are cars such as the Corvette, Beetle, Mini Cooper and Volt, listed among the vehicles least likely to be stolen.

What if I already have a theft-prone vehicle?

The surcharge will sometimes be waived if the driver buys a theft-prevention device. CAA, for instance, will remove the surcharge if shown proof-of-purchase of a vehicle lock device such as a steering wheel lock, also known as The Club.

Other insurers are asking customers to install a Tag tracking system. The insurer will either reimburse the cost of the system, offer a credit for it, or remove or refund the surcharge.

What are some other anti-theft options?

Rates.ca suggests that a security tire clamp or a brake lock that fits around the brake or clutch pedal can deter thieves. An alarm system is also useful, and the website notes that even a fake alarm system, if it looks real, may make a thief think twice about breaking in.

Article content

Are there best practices as well as devices?

Good habits go a long way. Keep the vehicle locked, don’t leave any valuables inside, and never leave a spare ignition key in the glove box. Also, never leave the car unattended with the engine running (tempting on cold winter mornings), and if you don’t have a garage, make sure your driveway is well lit.

What if the care is stolen anyway?

That’s easy. Call your insurance company right away, and contact the police, though not through the 911 number. Despite its rampant rise, car theft is still technically not an emergency.

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our newsletters here.

Article content