Insurance Claims Surge as Auto Theft Remains a Billion-Dollar Problem in Canada
Ontario saw a 17.4% decline in auto thefts in 2024, marking a shift after years of historic highs. However, despite the progress, experts caution that auto theft remains a major national crisis, with over 57,000 vehicles stolen across Canada last year, according to a new report from Équité Association, a national authority on insurance crime and fraud prevention.
Across the country, auto theft dropped 18.6% year-over-year, with Quebec leading the decline at 32.4%, followed by Western Canada at 12.7%. While these numbers indicate improvement, 40% of stolen vehicles remain unrecovered, underscoring the persistence of organized auto theft rings.
Équité Association President and CEO Terri O’Brien described 2024 as a turning point in the battle against auto theft, crediting collaboration among law enforcement, government agencies, and insurance stakeholders for the drop.
“Momentum is on our side to disrupt criminal networks profiting from auto theft and insurance fraud,” O’Brien stated. “We continue to work on behalf of our industry members to prevent vehicle theft in Canada.”
However, insurance fraud linked to auto theft remains a significant concern. The Insurance Bureau of Canada (IBC) reported that 2023 was a record year for auto theft claims, with $1.5 billion in payouts, making it one of the costliest years for insurers.
While the numbers have improved, Ontario continues to struggle with auto theft as a systemic issue. Toronto saw an alarming 98% increase in vehicle thefts between 2018 and 2022, while Peel Region experienced a 45% jump between 2021 and 2022. At one point in 2023, an average of 32 cars were stolen per day in Toronto alone.
Bryan Gast, Vice President of Investigative Services at Équité Association, emphasized the connection between auto theft and organized crime.
“Our investigative teams work closely with national and international law enforcement, enabling industry collaboration and providing cutting-edge intelligence to combat insurance crime,” Gast said. “But the most impactful step remains making vehicles harder to steal in the first place.”
Law enforcement agencies continue to stress the importance of proactive measures to prevent theft. Peel Police recommend the following steps to secure vehicles:
- Avoid leaving valuables inside your car.
- Park in a garage if possible; if not, block high-value vehicles with another vehicle.
- Use RFID-blocking key storage to prevent relay attacks.
- Ensure good lighting and install security cameras around your property.
- Invest in theft-prevention devices, such as steering wheel locks, tracking devices, engine shut-off systems, and on-board data port locks.
- Consider installing retractable driveway bollards for additional security.
As efforts to combat auto theft continue, the industry and law enforcement remain focused on reducing theft rates further and closing the gaps that allow criminal networks to thrive.