Canadian insurance companies lost more than $1 billion in vehicle theft claims for the first time in history in 2022, largely due to organized crime, according to an industry report.
“For the first time in history, insurers lost over one billion dollars in stolen vehicles, which directly impacts Canadians at a time when inflation and affordability are putting excess strain on consumers,” said Équité Association, a non-profit that represents Canadian insurance companies.
The organization said the trend indicates that organized crime syndicates consider stealing vehicles in Canada “a low-risk/high-reward opportunity, regardless if the vehicles are for export or domestic sale.”
“Illegal profit margins are very high and the risk of prosecution is considerably low,” it said.
Not all provinces had data available, but in those that did, there was a double-digit increase in vehicle thefts last year. For example, Ontario was up 48.3 percent year over year, while Quebec was up 50 percent. Alberta, which had seen several years of decline in vehicle thefts, was up 18.3 percent year over year, and Atlantic Canada was up 34.5 percent year over year.
“There is no doubt that vehicle theft has reached a national crisis in this country,” said Terri O’Brien, president of Équité Association.
“We know for certain that vehicles in Canada are being stolen by domestic and international criminal organizations. The proceeds are then being used to finance domestic drug trafficking, arms dealing, human trafficking, and international terrorism. These crimes hurt our communities, and puts Canada in the spotlight internationally as a source country for illegal trade.”
The most common vehicles stolen in Western Canada are trucks, while in Ontario and Quebec SUVs are the vehicle of choice for thieves. Atlantic Canada sees thefts of sedans.
The national vehicle recovery rate is 57 percent, with Alberta seeing the best rate of recovery at 80 percent, and Quebec having the lowest recovery rate at 34 percent.
Most of the vehicles stolen in Ontario (61 percent) and Quebec (75 percent) are vehicles newer than 2017, while in Atlantic Canada, thieves tend to typically target vehicles made between 2010-2016.
