Auto theft: BILLION DOLLAR QUESTION

The high-speed car chases and the racy depiction of the criminal underworld may make the recent film “Gone in 60 Seconds” seem like just another Hollywood tale. However, the underlying culture of the auto theft trade portrayed does not stray too far from reality.

Unfortunately the rate of Canadian auto theft has reached alarming proportions. A total of 442 vehicles are stolen every day in Canada, representing 18 thefts per hour. Although the national property crime rate has fallen steadily since 1991, a decrease in the rate of car theft has been slow to follow. This begs the question, what exactly is it that motivates car thieves? Simply put, their motivation is the lucrative stolen vehicle export trade.

Sophisticated business

Canada Customs estimates that approximately 20,000 stolen vehicles are illegally exported from Canada each year, representing one-third of all stolen cars. The remainder is usually stripped for the resale parts market. Within days of a theft, a car stolen off the streets in Canada can end up on the roads in Eastern Europe, Russia, the Middle East, South America, the Caribbean, Africa or Southeast Asia, where criminals can net anywhere from $1 million for stealing 30 or more high-end vehicles.

North America’s now booming “vehicle theft for export” business barely existed five years ago, but lower trade barriers, fewer local car dealerships, high tariffs on imported vehicles, a lack of law enforcement resources and lenient laws have attracted sophisticated criminals to this lucrative underworld industry. A lack of standardized tracking systems for registered motor vehicles and the ability of criminals to manipulate shipping and export regulations, ownership papers and vehicle identification numbers (VINs), have also enabled the organized auto theft and export industry to operate with virtual impunity.

No magic solution

The automobile theft and export industry is an expensive social menace that costs Canadians close to $1 billion every year – $600 million for insurers or $48 per policy holder to fix or replace stolen cars, $250 million in police, health care and court system costs, and many more millions of dollars in correctional services expenses. As Canadians become more aware of this costly problem, measures are being taken to prevent this type of criminal activity, however, the answers are not simple and as yet there is no magic solution.

The fight against auto theft requires the cooperation and involvement of many stakeholders. It starts with automobile owners and includes the law enforcement community, automobile manufacturers, dealers of new and used cars, salvage operators, car repairers, automobile insurers, theft deterrent system manufacturers and installers, licensing and customs authorities, and the judicial system. All Canadians have a stake in preventing auto theft but the measures currently being taken to prevent these crimes do not seem to be effective.

Despite the recent concern over auto theft, many Canadians still do not have anti-theft devices in their vehicles. For those that do, the most popular devices include car alarms (36 %), kill switches (26 %) and the “armoure collar”, the “Club” or a steering lock (21 %). Perhaps the reason behind this lag in adoption is that OEM (original equipment manufacturer) anti-theft devices, as well as those available commercially, have yet to be proven effective and quite obviously, no longer act as sufficient deterrents for vehicle theft.

A new approach

The development of sophisticated, new technologies that use cellular-based tracking systems now offer automobile owners an alternative for securing their personal assets. These devices are hidden in the vehicle and, in the event that the asset is stolen, they can be quickly located (typically within one foot of its location, in less than an hour) by tracking them through the cellular system of regional wireless companies. Cellular-based tracking systems are non-restrictive, enabling vehicles that end up underground, in metal containers or in enclosed areas such as parking garages to be located successfully. Some of these devices have seen recovery rates as high as 95%.

In the fight against auto theft, it remains the responsibility of the consumer to take action to protect their vehicles, as well as the insurers to provide the incentive to do so. Canadian insurance companies are beginning to offer various insurance incentives to consumers who use anti-theft systems and in some cases, insurers are offering up to 40 % reductions in insurance premiums as well as possible reductions on insurance deductibles. Many insurance companies are also making it mandatory for consumers who own luxury vehicles, vehicles in a high-theft category, and/or construction equipment to install them. As Canadians search for new ways to secure their vehicles, companies will continue to offer new and innovative solutions to the auto theft problem. However, creating awareness still remains key to solving this problem, otherwise it could mean millions of dollars “Gone in 60 Seconds”.MAY 2001