Auto theft impacts vehicle insurance costs across southern Ontario

As the number of auto thefts continues to rise, one insurance company suggests owning a vehicle may soon become unaffordable.

Car thefts continue across southern Ontario and they are becoming more violent, according to police. Just yesterday (Jan. 30), police reported home invasion car thefts in Mississauga, Brampton and Toronto.

Police from several services have joined to form the Provincial Carjacking Joint Task Force to battle the increase in thefts in southern Ontario.

The more aggressive tactics impact people’s lives and sense of security, a report from CAA Insurance Company notes.

“Getting your car stolen will not only disrupt your daily life, but there is also a considerable emotional distress it takes on your life as well,” says Elliott Silverstein, director of government relations, CAA Insurance.

And, of course, there are financial implications that could impact all vehicle owners.

Auto theft exceeded $1.2 billion in claims in 2022, a number that is only expected to rise if things do not change quickly, according to the report.

This crisis will impact insurance rates and other vehicle costs, the report indicates.

“The impacts of auto theft are significant. For the insurance industry, it is the equivalent of addressing a year-round catastrophic incident (like a flood or tornado) with no visible end in sight,” adds Silverstein.

The shortage of microchips and vehicle availability along with high interest rates to lease a vehicle are also impacting affordability.

“Consumers are at a tipping point, and they will soon feel the tangible effects of the auto theft crisis,” says Silverstein. “If the rate of vehicle theft does not decrease, it will lead to an increase in auto-related costs that could become unbearable for drivers in Ontario, many of whom are already struggling with affordability.”

CAA Insurance suggests government, insurers and vehicle manufacturers all have a role to play in combatting auto theft.

Technology advancements have far surpassed vehicle standards, which haven’t been updated since 2007 in Canada, making it more difficult to reinforce technology-based solutions like immobilizers and mandate their inclusion in new vehicles, the report notes.

CAA Insurance offers the following tips to combat auto theft:

• Secure your parked vehicle with a steering-wheel lock, brake pedal lock, or wheel lock, such as “The Club” to secure your parked vehicle.
• Secure your car key fob by storing it in a Faraday box or pouch to prevent signal hacking.
• Consider a professionally installed after-market immobilizer.
• Lock your doors (both car and home) and park your vehicle inside if you have a garage.
• If you own more than one vehicle, it’s recommended to park the less valuable one nearer to the street.
• Install motion sensors and a camera on your driveway to capture any activity.
• Cover the VIN (Vehicle Identification Number) so it’s not visible on the dashboard.
• Store a GPS tracker (ex, Air Tag) to track your vehicle should it be stolen.
• Ensure items are out of sight, and do not leave valuables in your vehicle.
• Always avoid leaving your vehicle unattended while it is running.

CAA Insurance urges individuals to report any suspicious activity to police and avoid confrontations with thieves.

See the full report here.

Photo: CAA