What drivers with stolen cars are paying for insurance
Drivers of Canada’s top 10 stolen cars are spending about 37% more for comprehensive insurance coverage.
In Ontario, the average annual auto insurance premiums were $1,796 as of October 2023, up 7% year-over-year, according to data from the Financial Services Regulatory Authority (FSRA). The average premium price in the Greater Toronto Area (GTA), at $2,391, was also up 7% year-over-year.
In addition to raising rates, some insurers have also established surcharges for clients of commonly stolen vehicles, or those who live in areas at high risk of theft. But brokers can help by shopping the market for customers. Drivers can also help themselves by installing anti-theft devices, increasing their deductible, and bundling their insurance.
There are several factors that determine car insurance rates including where you live, a driver’s age, gender, driving record, and the vehicle’s make and model. Basically, if a car is not in a collision, isn’t stolen, or is bought by safer drivers, it’s typically much cheaper to insure.
That’s why if you’re in the market for vehicle it’s a good idea to investigate insurance costs before making a purchase. It’s one variable commonly overlooked by shoppers. Talk to your broker before you buy.
Auto theft claims costs hit a record high of $1.5 billion in 2023, Insurance Bureau of Canada reported. That’s been on the rise for years, before national concern caused Canada’s federal and provincial governments to intervene, alongside the insurance industry, law enforcement, and the Canada Border Service Agency (CBSA).
That intervention has helped auto theft to decline 17 per cent nationally so far in 2024, but it will take time for this to filter down to cost improvements for customers. It’s also dependent on theft continuing to trend downward.
Insurers have shown that they can be responsive to trends when setting rates. Case in point is COVID, where some insurers reduced premiums since fewer people on the road meant fewer claims.
That said, there’s numerous pressures on auto insurance premiums. Climate change, inflation, the rising cost of labour and parts also play a role. Repairable claims cost in Canada is $5,044 — a 12% increase from the previous year.
-With files from Canadian Underwriter
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