06/16/2023
Stolen vehicles cost insurers more than $1 billion in 2022 in Canada by Laurène Jardin | June 9, 2023 10:59
According to the Equity Association's 2022 Vehicle Theft Trends Report, the insurance industry could lose more than $1 billion in 2022 in Canada.
In the face of this national trend, organizations are spending more time on preventing vehicle thefts. "The techniques used by criminals are constantly evolving and becoming more and more sophisticated." Adopting a layered approach is the best way for Canadians to protect themselves, their family, and their vehicle. "When it comes to car theft, the best tactic is good defense," Bryan Gast, vice president of the Equity Association's investigative services, said in a statement.
Regional Trends
In Canada, the most stolen vehicles vary by region. Trucks dominate the west of the country, while SUVs are most caught in Ontario and Quebec, and sedans are most targeted in the Atlantic provinces. All provinces recorded increase in vehicle flights compared to 2021.
The main provinces affected by this significant increase are: Ontario (48.3%), Quebec (50%), Alberta (18.3%), and Atlantic (34.5%).
In Alberta, the downward trend in vehicle theft reports has reversed, with a growing preference for older vehicles, including trucks. Equité Association reports, on the other hand, that Edmonton has experienced a particularly serious wave of flights in 2022. In two days, twenty F150 vans were stolen for shipping overseas.
In Ontario and Quebec, the majority of stolen vehicles are new (2017 and newer), as organized crime networks target high-end vehicles for foreign sales. Recovery rates, significantly lower in Ontario and Quebec, suggest vehicles are mainly exported or have their Vehicle Identification Number (NIV) modified before being sold domestically to unsuspecting buyers.
New Brunswick records the highest number of vehicle flights among the Atlantic provinces due to its proximity to Quebec and the United States, making it easy for vehicles to move across the border.
Observing the trends
In its report, the Equité Association finds organized crime views vehicle theft in Canada as a lucrative activity with low risk of prosecution. The profit margins are far higher than the consequences, prompting criminals to engage in this activity, the report finds.
According to the agency's CEO Terri O'Brien, vehicle theft has become a national crisis. "We know that vehicles are stolen in Canada by national and international criminal organizations and the proceeds from those flights are used to finance domestic drug trafficking, gun trafficking and human trafficking, and international terrorism." “These crimes affect our communities and place Canada on the global stage as a source of illegal trade,” she said in a June 6 statement announcing the release of the report.
Ms O’Brien says supply chain disruptions have created an imbalance between supply and demand, fueling the market for questionable NIV vehicles.
Getting the Layer Approach
Equity Association, which is funded by Canada’s leading insurance companies, is proposing a layered approach to prevent vehicle theft and protect Canadians. This approach includes four categories of preventive measures.
The first layer consists of simple steps such as always locking your vehicle doors, never leaving keys on the door, and making sure the windows are fully rolled up when you leave the vehicle. It is also recommended to park the vehicle in a well lit place.
The second layer involves installation of visible or audible anti-theft devices. This may include sound alarms, steering column collars, steering wheel and brake pedal locking, on-board diagnostic port (OBD), brake or wheel lock, anti-theft stickers, vehicle identification markers, and Engravings on the windows.
The third layer consists of installing a vehicle immobilization device such as smart keys, circuit breaker, emergency stop switches, starter, ignition and fuel shut-off devices, and wireless ignition authentication.
Finally, the recommended fourth layer is to invest in a monitoring system. Tracking services are installing hard-to-see tracking devices throughout the vehicle, which can help locate them in the event of theft
