Insurance Bureau of Canada reveals the top 5 hot spots in Alberta for auto theft claims
Auto theft claims costs in Alberta are up 55% since 2021
EDMONTON, AB, June 5, 2024 /CNW/ - According to newly released data from Insurance Bureau of Canada (IBC), auto theft claims costs in Alberta rose 55% between 2021 and 2023. Notably, theft claims costs went up a staggering 65% in Edmonton and 59% in Calgary during that period. The other hot spots with alarming increases in theft claims costs include Medicine Hat, Lethbridge and Fort McMurray.
"The auto theft crisis continues to persist across Alberta, and it's adding pressure to the cost of auto insurance for all drivers," said Aaron Sutherland, Vice-President, Western and Pacific, IBC. "Auto theft disrupts lives and creates fear in communities across the province. Urgent action must be taken to address this growing trend."
Alberta's auto insurance system is facing some of the highest cost pressures in Canada, according to recent data from the General Insurance Statistical Agency (GISA), a statistical agency created and overseen by provincial insurance regulators. Legal costs now account for a greater portion of the auto insurance premiums drivers pay in Alberta than anywhere else in Canada. GISA data also shows that Alberta ranked second in Canada for the amount spent per claim to repair vehicles as well as the frequency at which vehicles are stolen.
"Claims costs now exceed the amount of money insurers are collecting in premiums because of the auto insurance rate cap in Alberta. As a result, insurers are being forced to scale back their offerings to remain viable, and this is making it more difficult for many drivers to secure the coverage they need," added Sutherland. "Reform is needed urgently, and as the government considers various solutions to reduce premiums for drivers it's critical that it addresses these cost pressures."
Top Five Alberta Cities by Increase in Auto Theft Claims Costs, 2021 to 2023
Medicine Hat |
Edmonton |
Fort McMurray |
Calgary |
Lethbridge |
|
2021 |
$390,761 |
$15,749,461 |
$2,071,849 |
$20,856,769 |
$732,742 |
2022 |
$427,586 |
$21,224,044 |
$2,441,559 |
$29,040,163 |
$1,167,920 |
2023 |
$672,398 |
$26,193,922 |
$3,311,123 |
$33,076,848 |
$955,716 |
2021 to 2023 Increase |
72 % |
66 % |
60 % |
59 % |
30 % |
Last month, the federal government released its National Action Plan on Combatting Auto Theft. The plan is comprehensive and includes many of the recommendations submitted to the government by the home, auto and business insurance industry. However, it is time for the rubber to hit the road on the plan.
Alberta's insurers are urging all orders of government to work together to implement the plan's recommendations. In Alberta, these include providing more resources for coordinated, inter-agency law enforcement focused on auto crime; the creation of a provincial auto theft team with dedicated prosecutorial support; and, via this team, strengthening provincial capacity to police and deter organized crime's involvement in auto theft, as is being done in other provinces.
For more information on the national auto theft crisis, see IBC's news release "New data shows severity of Canada's worsening auto theft crisis – Theft insurance claims top $1.5 billion in 2023."
Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up the vast majority of Canada's highly competitive property and casualty (P&C) insurance market.
As the leading advocate for Canada's private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow.
IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses.
For media releases, IN Focus articles, or to book an interview with an IBC representative, visit ibc.ca. Follow us on LinkedIn, X and Instagram, and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC. We're here to help.
SOURCE Insurance Bureau of Canada
Media Contact: Brett Weltman, Manager, Media Relations, IBC, [email protected]
Share this article