Read the full story on The Auto Wire

Canadian Car Theft Insurance Claims Reach All-Time High

If you’ve been shocked by your insurance premium lately, you’re far from alone. Canada, just like the US, has seen a surge in car thefts over the last few years and the result has been insurance rates skyrocketing. Insurance claims for theft in Canada have reached a new annual high of $1,500,000,000.

Report claims distracted driving rates fell in 2023.

According to the Insurance Bureau of Canada, the auto theft crisis is fueling record insurance claims. 2022 was the first year the cost of insurance claims in the country crossed the $1 billion mark.

With 2023 far surpassing that figure, it’s possible the $2 billion mark could be crossed before long, unless something changes.

The organization points out that from 2018 to 2021, auto insurance theft claims only averaged $556 million. But from 2018 to 2023, auto theft claim costs have increased a whopping 254%. This is why the trend of car thefts around the world has concerned us so much. Everyone ends up paying the price, even if their vehicle isn’t stolen.

Also, IBC points out that many cars are stolen by organized crime. Proceeds from selling the vehicles whole or in pieces are then used to finance other crimes like drug trafficking, arms dealing, human trafficking, and international terrorism.

“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, Vice-President, Strategy, IBC. “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.”

IBC says it doesn’t have province-specific auto theft claim numbers ready yet, but that Ontario is the leader of the trend in Canada. That doesn’t surprise us in the least since car thefts there have been raging out of control for a while. And while police in Ontario have recently busted up some car theft things, there’s still plenty more work to do.

Image via Josh Phillips/Facebook

Follow The Auto Wire on Google News.

Join our Newsletter, subscribe to our YouTube page, and follow us on Facebook.