Why are car thefts driving up insurance costs?
Car theft is on the rise in Canada, particularly in northern Ontario. This surge now has a direct impact on car insurance premiums.
Insurance companies paid out an alarming $1.5 billion in claims related to vehicle thefts in 2023 alone.
According to a report by RATESDOTCA, the comprehensive premium portion of car insurance for vehicles like the 2024 Dodge Ram truck can be nearly seven times higher than for a 2018 model of the same truck.
The increase in vehicle thefts has forced insurers to hike premiums to cover the costs of these massive losses.
This counts especially among popular models like the Dodge Ram, Honda CR-V, and Ford F-150,
How can you protect your vehicle from theft?
Similar trends in car thefts are also being seen in the United States, where keyless fob hacking has become a significant issue.
Criminals have found ways to clone key fobs. This enables them to steal vehicles without breaking into them.
In cities like Philadelphia, thieves have been arrested for using technology to clone key fobs, targeting cars with push-button ignitions.
While car manufacturers are updating security features, criminals are often one step ahead. They use tutorials available online to exploit these vulnerabilities.
Vehicle owners in both Canada and the U.S. are urged to take preventive steps. Simple measures like locking doors, parking in garages, and using steering wheel locks can deter thieves.
The Canadian Équité Association, which focuses on preventing insurance fraud, emphasizes the need for federal legislation to force manufacturers to improve vehicle security features.
Drivers who implement additional security measures may also benefit from lower insurance premiums.
Are car theft trends different between Canada and the U.S.?
Both Canada and the U.S. grapple with rising car thefts. However, the strategies and methods vary slightly between the two countries.
In Canada, organized crime syndicates are often the drivers behind car thefts. Many stolen vehicles are then being shipped overseas from port cities.
On the other hand, in the U.S., high-tech methods like key fob hacking have become more common.
In both countries, however, the result is the same: insurance companies are paying out massive claims, leading to higher premiums for consumers.
These cross-border crime trends are having a ripple effect on insurance policies.
As car thefts continue to increase, insurance companies are likely to keep raising rates for the most stolen vehicles, particularly for newer models.
Drivers in both nations should stay informed and take steps to protect their vehicles to help keep insurance costs manageable.