Canada’s Car Theft Crisis: The Impact on Auto Insurance in SK
Amid rising concerns over car theft this past month, its subsequent impact on car insurance rates is becoming an undeniable issue. Car theft not only presents a direct loss to the owner but also causes a significant ripple effect, leading to higher insurance premiums and a general uptick in car insurance costs across the board.
This escalation compels vehicle owners and insurance policyholders to grapple with the increasing financial burden, underscoring the pressing need to understand the dynamics between stolen cars and the insurance industry.
Table of Contents
The Escalating Crisis
Overview of Auto Theft in Canada
This recent surge in Canada’s auto theft incidents and claims costs has directly impacted auto insurers over the past few years. In 2024, the comprehensive portion of auto insurance premiums for the most commonly stolen vehicles was approximately 37% above the average.
High rates of auto theft are continuing to push premium prices higher as insurers try to balance out unprecedented claims costs.
Daniel Ivans, licensed insurance broker and RatesDotCa insurance expert, continues to say, “For drivers of commonly stolen vehicles, it’s even more important to shop around for auto insurance, as prices could vary widely from insurer to insurer, depending on claims costs and how they are calculating risk.”
Auto Theft Crisis By The Numbers:
- 62% Growth: Increase in organized crime groups involved in vehicle theft since 2022
- $1.5 Billion: Amount paid out by Canada’s private auto insurers in theft claims in 2023
- $556 Million: Average annual auto theft claims costs between 2018 and 2021
Unfortunately, Canada’s auto theft crisis shows no signs of slowing down. Criminal Intelligence Service of Canada has also released an unclassified report on organized crime involvement in vehicle theft in Canada. It found that the number of organized crime groups involved in vehicle theft has grown by 62% since 2022.
The financial impact of this crisis is staggering, with Canada’s private auto insurers paying out $1.5 billion in theft claims in 2023. To put this into perspective, between 2018 and 2021, auto theft claims costs averaged $556 million annually.
Statistical Data for Saskatchewan Auto Theft
In 2023, nearly 1,000 vehicles were reported stolen in Saskatoon, SK, between January and November. This is in comparison to 2022, when the city reported that 1,101 vehicles were reported stolen, showing a slight upward trend for car theft. However, the data for the province shows a different trend than what’s being reported in our neighbouring provinces.
Our experience in Saskatchewan is quite different than what has been an issue in Ontario, Quebec and B.C. where high-end vehicles have been stolen and shipped abroad.
Mitch Yuzdepski, the executive director for the Saskatchewan Association of Chiefs of Police, said auto theft presents itself differently in the Prairies.
SGI’s spokesperson Tyler McMurchy mentioned that the province of Saskatchewan received 3,404 insurance claims for stolen vehicles in 2023, a decrease from the previous year’s 3,597 claims filed. He noted that a third of stolen vehicles in Saskatchewan are the result of keys being left inside the vehicle, noting that many cars are recovered locally.
Chart from Equite 2023 Auto Theft Trend Report
The Equite 2023 Auto Theft Trend report includes data for Western Canada, including BC, Alberta, Saskatchewan, and Manitoba. Interestingly, a good portion of the data for Western Canada* is likely related to Alberta, as the province experiences more auto theft per capita than Ontario (252 stolen vehicles per 100,000 people, while Ontario experiences 202).
Saskatchewan’s Unique Situation:
Saskatchewan’s auto theft patterns differ significantly from those in Ontario, Alberta, Quebec, and BC. While these provinces face high-end vehicle thefts for export and domestic re-sale of re-VINed vehicles, Saskatchewan’s thefts are often more opportunistic in nature, with many vehicles being recovered locally.
Comprehensive Auto Coverage
Definition and Benefits of Comprehensive Auto Insurance
Comprehensive auto insurance is designed to offer protection against losses not related to collisions. This type of coverage is crucial if your vehicle is damaged due to theft, vandalism, natural disasters, or falling objects. This coverage comes automatically with your basic plate registration, subject to a $700 deductible.
Purchasing additional Auto Insurance becomes a choice, allowing you to decide based on your personal risk assessment if you’d like to lower your deductible to $50, $100, $250, or $500.
How Comprehensive Coverage Offers Protection Against Theft
Comprehensive coverage protects against the financial loss you experience from the theft of your vehicle, covering damages like broken locks or smashed windows resulting from break-ins. It also covers you for the theft of car parts, such as catalytic converters. If your car is stolen, comprehensive insurance with Replacement Cost coverage can help cover the replacement costs, less any deductible you have chosen.
Important Notice
Auto Insurance coverage does not extend to personal items, such as belongings or contents, stolen from your vehicle.
What Comprehensive Auto Insurance Covers:
- Vehicle Theft: Full replacement cost (less deductible) if your vehicle is stolen and not recovered
- Break-In Damage: Repairs to windows, locks, and other parts damaged during a theft attempt
- Parts Theft: Replacement of stolen components like catalytic converters
- Recovery Damage: Repairs needed if your vehicle is recovered but damaged
Practical Steps to Protect Your Vehicle and Minimize Premium Costs
Preventative Measures to Deter Auto Theft
To safeguard your vehicle from theft, consider installing a steering wheel locking device or an aftermarket GPS tracker, which may aid in the vehicle’s recovery if stolen. Additionally, parking your vehicle in a well-lit area and ensuring all doors and windows are securely locked can significantly deter theft.
Investing in anti-theft devices like ignition or fuel kill switches and using a vehicle immobilizer system can prevent unauthorized use of your car.
“When it first gets cold, we will see that jump, and we need to always remind the public to stay diligent in that regard. It doesn’t seem to necessarily make a difference because when it’s cold, people leave their vehicles running outside of a restaurant or outside of their home.” – Staff Sgt. Matthew Ward of the general investigation section.
Vehicle Theft Prevention Tips:
- Never leave your keys in the vehicle or the engine running when unattended
- Install a steering wheel lock or aftermarket GPS tracker
- Park in well-lit areas or secure garages whenever possible
- Consider installing an immobilizer system or kill switch
- Use a signal-blocking pouch (Faraday bag) for keyless entry fobs
Future Outlook
Predictions on the Impact of Countermeasures on Insurance Premiums
Implementing stringent measures is expected to mitigate the auto theft crisis gradually. This, in turn, is anticipated to stabilize and potentially reduce insurance premiums. As vehicle recovery rates improve and theft incidents decrease, the financial burden on insurers and policyholders alike is likely to diminish, leading to more favourable insurance rates.
Saskatchewan’s Insurance Outlook:
While auto theft claim rates in other provinces can sometimes affect insurance rates in Saskatchewan, the impact is likely less severe compared to provinces experiencing a surge in thefts. Thankfully, Saskatchewan isn’t experiencing as heavy a crisis as BC, Ontario, and Quebec are.
While our provincial basic insurance from SGI Auto Fund will likely remain mostly unaffected so long as the auto theft rate remains consistent with the previous year’s numbers, it’s still a good idea to be diligent with your Auto Insurance.
What Steps Should You Take If Your Car Is Stolen in Canada?
If your car is stolen in Canada, the first step is to report the theft to your local police on a non-emergency line and complete a police report. Next, verify whether your car insurance policy includes theft coverage. Contact your insurance provider to initiate a claim if you have comprehensive, specified perils, or all perils coverage.
What Vehicle Holds the Title for Being Most Stolen in America?
As of the 2022 National Insurance Crime Bureau (NICB) report, the vehicle most frequently stolen in America is the 2004 full-size Chevrolet pickup. This model experienced 49,903 thefts, marking a 3.5% increase from the previous year, 2021.
Disclaimer: The statistics and news videos referenced in this article are based on publicly available information.
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Posted in Auto on June 7, 2024 by Hope Prost
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