Uniting industries to tackle the auto theft crisis

Canada’s auto theft rates have reached crisis levels. With provinces across the country experiencing double digit increases in the first half of this year, the industry is estimating $1 billion in losses for 2023.

The financial and emotional stress associated with having a car stolen is without a doubt taking a toll on Canadians, and the problem is not something that can be reduced to accidentally leaving a door unlocked. The thieves – who are often part of vast and complex organized crime rings – are becoming more sophisticated.

“Canada has been a primary target for criminals due to the availability of cars and low risk of consequences,” says Jamie Lee, Head of Fraud and Financial Crime Operations at Aviva Canada. “Theft claims are up 39 per cent year over year at Aviva.  In challenging economic times, this is a lucrative business for criminals at the detriment of our customers.”

What’s happening to these cars? Lee says if your car is missing, there’s usually three main possibilities.

“Many of these stolen vehicles are being shipped overseas, the vehicle identification number (VIN) is being changed in order to re-sell domestically (referred to as re-VINing) to unknowing buyers, or the car is disassembled and sold for parts.”

Équité’s First Half of 2023: Auto Theft Trend Report shows that recovery rates are low. At 57 per cent, it’s likely that one of the first two outcomes is most common.

Collective action needed

Having your car stolen can be overwhelming and leave you feeling vulnerable and inconvenienced. With theft rates skyrocketing, and the average claim cost reaching almost $70,000 per vehicle[1], Lee emphasizes that it will take collective action to address this crisis.

“This problem cannot be addressed in isolation. We need everyone to work together. Insurers, government, law enforcement, and auto manufacturers all need to take meaningful action to protect customers and our communities across Canada from this crisis.”

The approach has to be multi-faceted and should include: auto manufacturers coming together to proactively install vehicle recovery devices from the get-go, working with the Ministry of Transportation to address the rising number of re-VINS and putting safeguards in place. Having an increased focus on exports at the borders. We need to ensure a safer Canada for drivers who deserve better.

“At Aviva, we’ve been offering theft recovery device installations free of charge for high-risk customers but not everyone has taken advantage of it to protect their vehicles,” Lee says. “We need the help of our broker partners to make sure customers know if they are high risk and educate them on what precautions they can take to help protect themselves.”

Knowledge is power – educating consumers on risk and prevention

[1] Canadian Underwriter: Grand Theft Auto: P&C industry sounds the alarm

“Our concern is not only for Aviva customers, but all drivers across Canada. In already challenging economic times, this crisis not only drives up insurance premiums generally, but is an emotionally and financially stressful experience for the victims,” says Lee.

Équité recently released their updated list of Top 10 stolen vehicles in Canada which includes several of Canada’s most popular SUVs and trucks:

• Honda CR-V
• Dodge RAM 1500 Series
• Ford F150 Series
• Lexus RX Series
• Toyota Highlander
• Honda Civic
• Jeep Grand Cherokee
• Land Rover Range Rover
• Chevrolet/GMC Silverado/Sierra 1500 Series
• Jeep Wrangler

Aviva encourages consumers to take precautions that can potentially help avoid their vehicle being stolen. Some include:

• Consider installing a vehicle tracking device, such as Tag
• Use a steering wheel lock
• Park your vehicle in your garage and ensure your garage is locked
• Store your keys in an aluminum or metal box and away from your door
• Use a data port lock

Drivers should review their insurance policies to ensure they’re covered in the event of a theft. Aviva also offers a Fraud Hub that provides Canadians resources and tips for things to ask and look out for.

[1] Canadian Underwriter: Grand Theft Auto: P&C industry sounds the alarm