Car insurance rates are going up due to theft. Here’s what to know

Insurance companies have taken a hit due to higher thefts. In 2022, the industry lost $1 billion due to theft claims, according to Rates.ca, a significant increase from 2021.

Insurance rates for some cars are increasing in Canada due to a growing auto theft crisis.

Rates.ca, an insurance price aggregate site, reports that insurance premiums for car models most often stolen have increased between 25 to 50 per cent over the last two years.

“To our knowledge, some insurers are applying this ‘high auto theft risk surcharge’ only in certain high-risk regions and/or to certain high-risk vehicles,” the Insurance Bureau of Canada told Global News Wednesday, the day after the Rates.ca report was released.

“Many insurers are also waiving this surcharge if the policyholder opts to take proactive steps, outlined by the insurer, to better protect their vehicle.”

The impacted models include the Honda CR-V, the most commonly stolen model in Canada, as well as the Lexus RX series, Ford F-150 and Honda Civic, according to Équité Association, which is investigating the rise in thefts.

“It’s a national crisis,” Bryan Gastl, vice-president of Investigative Services at Équité, told Global News. “In 2023, the first six months are proving to be worse than 2022.”

Gast previously told Global News that Canada has become a “source country” for stolen vehicles and international thieves are targeting here due to the ease of theft. Stolen vehicles are shipped off to places such as Africa to net a profit for the thieves.

Insurance companies have taken a hit due to the higher thefts. In 2022, the insurance industry lost $1 billion due to theft claims, according to Rates.ca, a significant increase from 2021.