Insurance Bureau of Canada reveals companies paid out over $1 billion in claims for stolen vehicles in 2022. As auto thefts surge in the Greater Toronto Area, some insurance firms are urging owners of high-target vehicles to install tracking devices.
This move is a recent effort to tackle a growing problem. However, some drivers express the desire for more installation options and concerns about associated costs.
Samantha Sannella, owner of a Jeep Rubicon in Toronto, shared her experience, receiving a letter from her insurer instructing her to install a TAG vehicle tracking system or face a $500 surcharge. The system uses wireless transmitters attached to different vehicle parts. While the installation cost her nearly $300, she understands the necessity, having had a previous Jeep stolen.
Steve Gimza, another vehicle owner, received a similar letter but was pleased as his insurance covered the TAG system installation for his Honda CR-V. He believes it's the insurance company's responsibility to bear such costs.
Guillaume Lamy from Belairdirect explains their encouragement of TAG technology installation in specific cases to combat the ongoing auto theft problem. He cites TAG's effectiveness and success rate as reasons behind the decision. Other insurers like Desjardins are also sending letters requesting TAG systems to certain customers in Ontario and Quebec.
The Greater Toronto Area has witnessed a concerning rise in vehicle thefts and carjackings. In 2023, Toronto police reported a 24.5% increase in vehicle thefts compared to the previous year, following a 47.4% jump in 2022. Violent carjackings have also seen an uptick.
The Insurance Bureau of Canada's Amanda Dean highlights that 2022 marked the first time insurers paid over $1 billion in claims for stolen vehicles nationwide. The GTA alone accounted for around $500 million of this total. Theft claim costs in Ontario reached about $700 million in 2022, representing a 329% increase from 2018.
Dean emphasizes that insurers are taking proactive measures, including incentivizing consumers to adopt theft-deterrent technologies. While some insurers apply a 'high auto theft risk surcharge,' they may waive it if policyholders take prescribed steps to protect their vehicles.
Dean calls for a collaborative effort involving governments, law enforcement, and car manufacturers to address the escalating auto theft issue.
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