As car theft decelerates, insurance claims are down in Canada

globalnews.ca:

With vehicle thefts gradually decelerating in Canada, insurance claims and costs are also on the decline.

New data by the Insurance Bureau of Canada released Wednesday showed that in the first six months of the year, there were 17,647 insurance claims for auto theft, a 19 per cent decrease when compared with 2023.

Across the country, car theft claims from January until June amounted to more than $544 million, down by roughly 29 per cent relative to the same period last year.

This comes as the number of vehicle thefts dropped by 17 per cent in the first half of the year, according to a previous report by the non-profit Équité Association.

Increased investments, public awareness and information-sharing have helped reverse the trend of auto theft, according to Équité.

“Concerted actions by law enforcement, insurers, governments and drivers to combat theft are showing results, but more remains to be done,” said Liam McGuinty, vice-president of strategy at IBC, in a statement.

Despite the dip seen this year, auto theft claims and counts still remain above “historical levels,” IBC reported.

In the last 10 years, auto theft claims have gone up by 138 per cent and the value of those claims has surged by 442 per cent.

McGuinty said this is putting upward pressure on drivers’ insurance premiums, while also compromising public safety.

“While theft frequency dropped slightly in the first six months of 2024, the problem remains significantly above historical trends,” he added.

As the issue persists, experts say that drivers are likely to continue feeling the pinch on their insurance premiums.

In a Ratehub.ca survey in May, nearly half (48 per cent) of respondents said they’ve faced a “significant” increase in auto insurance premiums