Multiple vehicle thefts: What insurers are seeing

Canada’s auto theft crisis remains in full swing, with some insurers reporting cases of consumers having the same vehicle make and model stolen multiple times.

“This isn’t just an isolated case,” says Daniel Ivans, a RatesDotCa insurance expert and licensed insurance broker. “Anecdotally, we are hearing of a growing number of instances of insurers paying out for multiple auto thefts of the same vehicle make and model to the same person.

“This was a very rare occurrence in the industry prior to the auto theft crisis.”

Canadian P&C insurers paid out about $1.2 billion in auto theft-related claims in 2022, a trend that appeared to continue last year.

And now RatesDotCa is receiving communications from multiple insurers concerning thefts of the same vehicle type.

“We had somebody who had a Range Rover, and then they replaced a Range Rover with a Range Rover, of course, and that was stolen too,” Ivans tells Canadian Underwriter.

The stolen vehicles are often on Équité Association’s list of Top 10 most stolen vehicles, such as Land Rovers and pick-up trucks, Ivans says. “And the reason for that is because you’ve got organized crime and criminal syndicates with certain lists of vehicles that are particularly desirable… These are [vehicles] that are specifically being targeted.

“You’ll have thieves identifying vehicles either in mall parking lots or large lots [and] underground garages, tagging those vehicles and tracking them back to houses, and under the cover of night, finding a way to get their hands on them.” 

Ivans says there has been a big spike in vehicle theft over the last couple of years, “and not only in southern Ontario, but along major port cities throughout the country.” 

Rob de Pruis, national director of consumer and industry relations with Insurance Bureau of Canada (IBC), says the association doesn’t track individuals with vehicles stolen more than once. “We know that auto theft is a problem,” he says. “We know that we’re seeing increases across the country, and Alberta is included in there,” he adds. 

In an earlier discussion about Fort McMurray wildfire risk, de Pruis noted the community is transient and there is also an element of crime there. “Anecdotally, I absolutely have friends that know people that have had a couple of vehicles stolen over the last few years.” 

Some insurers have responded by surcharging vehicles on the highly stolen list, or having consumers install an anti-theft device like Tag to mitigate the surcharge. Other insurers will suggest a steering wheel lock to prevent theft and mitigate the surcharge. 

While auto theft doesn’t directly affect an individual’s insurance premium, it can influence coverages a driver is eligible for, such as physical damage coverage, RatesDotCa says. It can also affect deductibles, leading to a higher deductible in case of theft. 

Individual premiums may not be affected by theft, but higher rates of auto theft are pushing premiums higher overall in Ontario. According to data from RatesDotCa’s auto insurance quoter RatesDotCa, comprehensive insurance premiums (where theft claims would be covered) on some commonly stolen vehicles jumped between 25% and 50% from 2021 to 2023.

 

Feature image by iStock.com/welcomia