Auto theft crisis: How much are premiums up?

Canada’s continuing auto theft crisis drives comprehensive auto premiums for commonly stolen vehicles by almost 40% above average, rate aggregator RatesDotCa reports. 

The comprehensive portion of auto insurance premiums for ten of the most commonly stolen vehicles in 2024 is approximately 37% above the average comprehensive premium cost, according to recent data from RateDotCa’s auto insurance quoter. 

Comprehensive auto insurance protects stolen vehicles or vehicles damaged during a theft attempt. It also covers any vehicle damage that isn’t caused by a collision, including theft, vandalism, fire, severe weather, natural disasters, and falling objects. 

Data released earlier this month by Insurance Bureau of Canada (IBC) shows auto theft claims skyrocketed to a record-breaking $1.5 billion in 2023. That was up from an estimated $1.2 billion in 2022, which was also a record at the time. By comparison, auto theft claims costs averaged $556 million annually between 2018 and 2021, IBC reports. 

The problem is particularly costly in Ontario, where auto theft claims costs increased a staggering 524% between 2018 and 2023. 

In Ontario, average auto insurance premium prices were $1,796 as of October 2023, up 7% year-over-year, according to data from the Financial Services Regulatory Authority (FSRA). The average premium price in the Greater Toronto Area (GTA) was also up 7% year-over-year at $2,391. 

“High rates of auto theft are continuing to push premium prices higher as insurers try to balance out unprecedented claims costs,” says Daniel Ivans, licensed insurance broker and RatesDotCa insurance expert. “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.”  

Equité Association’s Top 10 most stolen vehicles in Canada last year include the Honda CR-V, Dodge RAM 1500 Series and the Ford F150 series (in first, second and third place, respectively). For its part, RateDotCa’s data showing a 37% above-the-average comprehensive auto premium for the most commonly stolen vehicles used the following data:  

Quotes for comprehensive premium prices for a 35-year-old male driver living in Toronto with no prior convictions for ten commonly stolen vehicle models, including: 

• 2019 Honda CR-V;  
• 2023 Ford Lexus RX350h;  
• 2023 Ford F150 Lariat Supercrew 
• 2018 Honda Civic LX;  
• 2023 Toyota Highlander XLE 
• 2017 Dodge/Ram Ram 1500 Crew 
• 2018 GM Sierra 1500 Crew 
• 2018 Honda Accord Sport 
• 2016 Jeep Cherokee Trailhawk 
• 2023 Toyota RAV4 XLE. 

Adam Mitchell, CEO of Ontario brokerage Mitch Insurance, recently warned that clients may find themselves without comprehensive auto coverage if they submit multiple claims within a specific timeframe due to numerous thefts. 

For example, some carriers will allow only three comprehensive claims in three years, Mitchell reports.  

Mitch Insurance recently assisted a driver who had submitted three auto theft-related auto comprehensive claims since 2023. Because of this, their insurer stopped offering the coverage and the client had to find a new policy. 

Their previous insurance was about $2,600, but they were being quoted $11,500 for a policy that included comprehensive coverage.  

“We were able to find a policy for less than $9,400 and that rate could be lowered to under $8,500 if the driver chose to enroll in a telematics program,” Mitch Insurance reports. “A better price than the $11,500 they were quoted, but still significantly more than what they were paying before surpassing their insurer’s comprehensive claims threshold.” 

 

Feature image by iStock.com/welcomia