Auto insurance experts have been warning for some time that the number of auto thefts have been increasing dramatically, and the numbers are in to prove it.
According to a recent CTV News report, auto theft claims for Calgarians totalled more than $33 million in 2023, and, as a result, theft claim costs in cities across Alberta are rising. New data from the Insurance Bureau of Canada reveals that auto theft claims costs in Calgary increased by 59% from 2021 to 2023, climbing from $20.8 million to $33 million. Across Alberta, auto theft claims rose by 55% during the same period.
Even a 59% rise in auto thefts does not place Calgary in first place, however. In fact, the city is only ranked fourth for its increase in claims costs, behind Medicine Hat at a whopping 72%, then Edmonton at 66%, and Fort McMurray at 60%. We are ahead of Lethbridge, however, which has reported an increase in auto theft claims of 30%.
But although Edmonton beat Calgary by a 7% increase, we surpassed Edmonton in total claims costs. The province’s capital recorded $26,193,123 in claims in 2023, while Calgary claims reached $33,076,848. Fort McMurray came next, with $3,311,123 of auto theft claims recorded.
Nationally, the cost of insurance claims for replacing stolen vehicles reached a record-breaking $1.5 billion in 2023, up from $1.3 billion in 2022. This represents a 254% increase over the past six years, with just $436 million in claims costs recorded in 2018.
“The auto theft crisis continues to persist across Alberta, and it’s adding pressure to the cost of auto insurance for all drivers,” said Aaron Sutherland, vice-president of Western and Pacific regions for IBC.
“Auto theft disrupts lives and creates fear in communities across the province. Urgent action must be taken to address this growing trend.”
Data from the General Insurance Statistical Agency indicates that legal costs accounted for a larger portion of auto insurance premiums for drivers in Alberta than in any other province. Alberta also ranked second in Canada for the amount spent per claim to repair vehicles and the frequency of vehicle thefts. All of these factors are contributing to some of the highest auto insurance costs in the country.
What is being done about auto theft?
Last month, the federal government unveiled its National Action Plan on Combatting Auto Theft. This comprehensive plan incorporates many recommendations from the home, auto, and business insurance industries.
Insurers in Alberta are calling on all levels of government to collaborate in implementing the plan’s recommendations. This includes allocating more resources for coordinated, inter-agency law enforcement focused on auto crime; establishing a provincial auto theft team with dedicated prosecutorial support; and improving provincial capacity to police to deter organized crime involvement in auto theft, similar to efforts in other provinces.
How to keep your car from being stolen
In terms of preventing vehicle theft, the Équité Association, a national organization with the mandate of reducing and preventing insurance fraud and crime, recommends using a common-sense, layered approach, which consists of four categories:
Category 1: Start simple
- Keep car doors locked at all times
- Never leave your keys in the ignition or leave it running (even when it’s cold)
- Close all windows completely before leaving your car
- Park in a well-lit area, and do not leave any valuables in sight
- Avoid purchasing vehicles that are stolen often
Category 2: Install anti-theft devices
- Audible alarms, steering column collars, steering wheel/brake pedal locks, on-board diagnostic (OBD) port locks, and brake and/or wheel locks are all examples of good anti-theft devices
- Theft deterrent decals and identification markers in or on the vehicle also work to deter thieves
Category 3: Install a vehicle immobilizer. Examples are:
- Smart keys
- Fuse cut-offs
- Kill switches
- Starter, ignition and fuel disablers
- Wireless ignition authentication
Category 4: Invest in a tracking system
High-tech tracking services install multiple devices in difficult-to-locate areas throughout your vehicle. If your vehicle is stolen, they will be able to find it right away.
Avoid auto theft and save on insurance premiums
Don’t forget that if your vehicle is among those most likely to be stolen, you will see that risk reflected in your vehicle insurance rates. If the vehicle theft trend continues, certain types of vehicles may even end up being uninsurable.
Working with a trustworthy insurance broker will keep your costs to a minimum without affecting the quality of your coverage. Lane’s Insurance of Calgary is a leading brokerage serving Alberta, offering affordable insurance bundles, excellent advice, outstanding claims support and the industry’s best customer service. Contact us at our Calgary, Edmonton, Banff, and Alberta offices.
