Auto theft claims costs rising in Atlantic Canada

Car thief in action late at night, wearing a black mask on his head — iStock.com/South_agency

New Brunswick has become Atlantic Canada’s auto theft capital, according to new data from Insurance Bureau of Canada (IBC).

IBC reports auto theft insurance claims costs in Atlantic Canada have jumped by 275% over the past 10 years. In the Maritimes, auto theft claims costs in 2024 exceeded $31 million, up from $8.4 million in 2014.

And more than half of those costs, $16-million-plus, were spent in New Brunswick. The province reported 788 auto theft claims in 2024. Not only that, but over the past decade, the three cities with the largest increases in auto theft claims costs in Atlantic Canada are Saint John (520%), Moncton (746%) and Fredericton (1,672%) — all in New Brunswick.

“All orders of government should continue to take action on the auto theft crisis in Atlantic Canada and across the country. However, it is most critical to tackle the crisis in New Brunswick to ensure it doesn’t become one of the country’s primary hot spots for vehicle thefts,” said Amanda Dean, IBC’s Ontario and Atlantic vice-president.

Province by province: Atlantic

Although New Brunswick’s claims counts are high, rising by 428% in the last decade, its theft claims costs dropped by 4.8% between 2023 and 2024, signalling mild progress on auto theft prevention.

Nova Scotia saw the next-highest auto theft claims cost in the region — more than $10 million in 2024. Theft claims rose by 12.4% between 2014 and 2024.

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Theft claims costs rose by 5.6% in Newfoundland and Labrador over the same period, totalling more than $4 million in 2024.

Prince Edward Island saw the biggest drop (18.8%) in auto theft claims in the Atlantic between 2023 and 2024.

Auto theft is not isolated to Atlantic Canada, which has recently become a hotbed for stolen vehicle exports. Auto theft claims costs have jumped by 65% in Alberta over the past three years, hitting the biggest cities the hardest, IBC recently reported. There, stolen cars are being registered and re-VINed before being sent to the rest of Canada.

Moving the needle

IBC is urging progress on auto theft prevention to continue and for new measures to be implemented.

“We need to treat vehicle theft as the national crisis that it is. It affects people and communities in every corner of the region and beyond,” Dean said. “The strategies and tools to address these issues exist. They stem from the federal government’s 2024 auto theft summit.”

The National Action Plan on Combatting Auto Theft, launched on May 20, 2024, focuses on disrupting organized crime groups involved in auto theft by enhancing prevention, intervention, intelligence sharing, and recovery efforts. But IBC says more needs to be done to prevent the widespread nature of auto theft nationally.

IBC says the government should continue to implement the National Action Plan, including modernizing and updating the Canada Motor Vehicle Safety Standards to make cars harder to steal.

One of the forces contributing to the decade-long increase in auto thefts is that vehicles have become easier to steal, reflecting the outdated nature of the regulations.

IBC also recommends that Atlantic auto insurers urge provincial governments to:

Provide more resources for coordinated inter-agency enforcement

Bolster enforcement capacity, as Ontario recently did, by creating provincial auto theft teams with dedicated prosecutorial support to strengthen provincial capacity to police and deter organized crime’s involvement in auto theft.

Harmonized approaches

A new U.S.-Canadian joint standard for electronic vehicle immobilizers aimed at preventing auto theft has been released.

The standard, which includes requirements for both original and aftermarket installations, was developed through collaboration between industry stakeholders and regulatory bodies, including Équité, representing Canada’s P&C insurance sector.

Designed to deter future theft technologies, ULC 338 provides clear guidelines for manufacturers and installers, and is expected to reduce auto theft crime across North America.