Auto theft claims surge in Alberta’s cities: IBC report

The Insurance Bureau of Canada says Alberta's auto theft rate is leading to a rapid increase in costs for auto theft claims. (File)

Edmonton and Calgary have become “the epicentre for auto thefts,” a new report says.

The Insurance Bureau of Canada (IBC) says the auto theft rate is well above the historical average in Alberta, a trend that is negatively impacting the insurance system.

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IBC says the cost of auto theft claims has increased by 85 per cent in Edmonton and 73 per cent in Calgary as a result.

The cost of claims is driven mainly by legal costs, the cost of delivering care and recovery benefits.

IBC says the Alberta government’s new Care-First auto insurance system will help, but it is only “half the solution.”

“The Alberta government has frozen or capped auto insurance rates below the cost of coverage for the past four years, crippling the competitive market that consumers rely on. By taking action to restore competition and choice, as well as to reduce auto thefts and other pressures, government can turbo charge its reforms and deliver even greater savings to drivers,” said Aaron Sutherland, vice-president of IBC’s Pacific and Western division in a news release.

Meanwhile, Sutherland says provincial and municipal governments are making progress on cracking down on auto theft, but more progress is needed.

“IBC recommends the Alberta government provide more resources for coordinated inter-agency law enforcement focused on auto theft and organized crime and create a provincial auto theft team with dedicated prosecutorial support,” the bureau said.

It says the federal government’s new Canadian Motor Vehicle Safety Regulation will make vehicles sold in Canada harder to steal.

“Auto theft disrupts the lives of everyone and creates fear in communities across the province, with city centres being hit the hardest. Working together with governments, law enforcement, the insurance industry and other stakeholders can help ensure that, in addition to lowering premiums through the new Care-First auto insurance system, Alberta’s drivers are also better protected against the scourge of auto theft,” said Sutherland.