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The demand for car theft insurance in Toronto has increased by 561% since 2018.

The demand for car theft insurance in Toronto has increased by 561% since 2018.

By Mounira Magdy

Published: June 5, 2024

New data released by the Canadian Insurance Bureau (ICB) shows that insurance claims for car theft have risen significantly in the Greater Toronto Area and across Ontario over the past few years.

Figures released by the organization on Tuesday indicate that car theft insurance claims in Toronto jumped from just over $56 million in 2018 to nearly $372 million in 2023, an increase of 561 percent.

This closely matches the increase across the province, where car theft insurance claims exceeded $1 billion in Ontario last year for the first time, marking a 524 percent increase compared to five years ago.

Amanda Dean, Vice President of the Canadian Insurance Bureau, stated in a press release that car theft is a national emergency.

Toronto continued to lead the list of Ontario cities when it comes to the total value of car theft insurance claims, followed by Brampton, where claims skyrocketed by 719 percent since 2018 to over $93 million last year. Mississauga saw a 533 percent increase to nearly $90 million in claims, while Vaughan experienced a 789 percent rise to just over $62 million, and Markham reported an increase of 989 percent to $43.6 million.

However, several other cities also showed massive jumps in claims, even if the total value was lower.

The total value of car theft insurance claims in Whitby surged more than 20 times from $512,751 in 2018 to over $12 million in 2023—a staggering increase of 2269 percent. Claims in Pickering rose more than 10 times from $802,520 in 2018 to nearly $11 million last year. Companies from Milton, Markham, Oakville, Richmond Hill, and Ajax also claimed increases of over 800 percent during that five-year period.

In an interview with CP24, she stated that collaboration is needed across multiple sectors to combat the issue.

Dean said, "The approach will involve the whole community." "Everyone needs to sit at the table. Everyone will work together to find solutions when it comes to combating car theft."

She praised the federal and provincial governments for implementing plans specifically to combat car theft but noted that there is more other stakeholders can do.

Dean mentioned, "There is certainly more we can all do, and insurance companies as well." "We want to keep sounding the alarm. We want to continue sharing the data we have, and we want to keep encouraging insurance customers to help protect themselves. Manufacturers also have a major role to play in sitting at the negotiating table for these discussions as well."

Law enforcement agencies across the Greater Toronto Area have expressed concern over the past year regarding the rise in violent car thefts. They warned that the crime has become a sophisticated industry witnessing the theft of hundreds of vehicles in the province for export to foreign markets, where the proceeds fund other types of criminal activity.

In April, police announced that they had recovered nearly 600 stolen vehicles from shipping containers at the Port of Montreal in recent months as part of an investigation into interprovincial car theft. Most of them were stolen from the Greater Toronto Area.

The World Bank is also calling for a national action plan that includes measures to make it more difficult to transport exported stolen vehicles.

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