Toronto, Ontario -- Auto theft is having a growing and dramatic impact on insurance costs in Alberta, the Insurance Bureau of Canada is warning.
According to data released by the IBC, the cost of auto theft was 165 percent higher in 2024 than in 2021, rising from $67 million to $110.3 million during the period.Last year, Alberta auto insurers also paid out $1.17 in claims and expenses for every dollar they earned in premiums.
The two cities hit hardest are Calgary and Edmonton, which saw auto theft claims cost increases of 81 percent and 79 percent between 2021 and 2024. Looking at the longer-term trend, since 2014, auto theft costs across the province have risen by 161 percent.
"The auto theft crisis persists in Alberta at a time when the province's auto insurance system is already under tremendous strain from tariffs, inflation, growing legal costs, and rising vehicle repair and replacement costs," said Aaron Sutherland, vice-president, Pacific and Western for the IBC. "The provincial government took an important step last fall when announcing significant auto insurance reforms. But much more is needed, including more measures to curb auto theft."
The IBC also noted the problem was on the radar of provincial legislators. Recently, the Alberta government implemented new rules preventing people without Alberta licenses or IDs to register vehicles on behalf of another person.
According to the IBC, MLAs should also prohibit the vehicle information number override functions at registries. Currently, registry agents can override the VIN input system and enter an invalid or unconfirmed VIN, making it simple to change vehicle information for the purpose of fraud or theft.
It also recommends the updating and standardization of vehicle bills of sale, as well as the restriction of third-party vehicle registrations to dealerships. Updating policies to standardize vehicle bills of sale would make it more difficult to sell stolen or reVINed vehicles. Restricting third-party vehicle registrations to dealerships would reduce the number of people able to register vehicles fraudulently.
The IBC also supports the implementation of an insurance validation program. This would allow law enforcement and provincial auto registries to confirm if a vehicle has active insurance.
"Addressing the auto theft crisis requires urgent action on multiple fronts," said Sutherland. "By working together with governments, law enforcement, and other stakeholders, we can help ensure that Alberta's drivers are better protected against the scourge of auto theft."
