Auto Insurance Rates Rising Amid Vehicle Thefts: What You Need to Know

June 12, 2024, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

The surge in vehicle thefts across Canada has led to a significant increase in auto insurance rates, leaving many drivers frustrated and financially burdened. According to the reports, the insurance reports losses of a staggering $1 billion due to auto theft last year, with Ontario alone accounting for $700 million in losses. As a result, some insurance companies are implementing surcharges for vehicles considered high-risk targets for thieves, potentially adding hundreds of dollars to annual premiums.

The Impact on Drivers

The consequences of this trend are far-reaching, affecting drivers across the country. According to a CTV News report, Sunil Patel from Scarborough, Ontario, had his Lexus SUV stolen from his driveway earlier this year, despite having a video security system and a steering wheel lock in place. Not only did the thieves brazenly steal his vehicle, but Patel was also informed that his insurance premiums would increase by a whopping $2,300 per year when he replaces his stolen car.

Patel's situation highlights the financial strain many drivers are facing due to the rise in auto theft. With vehicle shortages, high prices, and rising interest rates, the added burden of increased insurance premiums can be overwhelming for families and individuals.

The Insurance Industry's Response

To mitigate losses and address the surge in vehicle thefts, some insurance companies are implementing various measures. RatesDotca reports that certain insurers are raising premiums by as much as $500 for vehicles considered high-risk targets for thieves. In some casesdrivers have seen a 26% increase in their comprehensive insurance over the previous year.

Other insurance companies are offering rebates or providing tracking systems for vehicles at high risk of theft. Many individuals are now getting a letter stating that tracking device must be installed or the customers face an increase in premiums, highlighting the pressure drivers are facing.

Advice for Drivers

In light of these developments, experts recommend that drivers take proactive steps to protect themselves. Anne Marie Thomas from the Insurance Bureau of Canada advises consumers to speak with insurance brokers or agents before signing any paperwork, as the cost of insurance should be factored into the overall cost of vehicle ownership.

If drivers receive a renewal notice with a surcharge due to their vehicle's high-risk status, it may be prudent to shop around and explore options with other insurance companies that may not impose such hefty surcharges.

Daniel Ivans from RatesDotca suggests that if a $500 surcharge or any type of surcharge is applied due to a high-risk vehicle, it's an opportune time for consumers to check their options with other companies that may not be surcharging as heavily.

Conclusion

The rise in auto insurance rates due to vehicle thefts is a concerning trend that is impacting drivers across Canada. While insurance companies are implementing measures to mitigate losses, the financial burden on drivers can be significant. It is crucial for drivers to stay informed, explore their options, and take necessary precautions to protect themselves from the consequences of this ongoing issue.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

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