In recent months, the Greater Toronto Area (GTA) and now Waterloo have witnessed a disturbing trend of home invasions and high-end vehicle thefts. These incidents have not only caused significant distress among residents but have also raised concerns about security and insurance implications. As a high-net-worth individual, it is essential to stay informed about these developments and take proactive measures to safeguard your assets.
Canada has witnessed a sharp rise in auto theft incidents over the past few years, with Ontario experiencing a 48.2% increase between 2021 and 2023. Quebec and Atlantic Canada have also reported significant spikes, with theft rates up by 57.9% and 34%, respectively. This surge has had a direct impact on auto insurers, resulting in higher premiums for the most frequently stolen vehicles. In 2024, the comprehensive portion of auto insurance premiums for these vehicles was approximately 37% above the average.
The Canadian Criminal Intelligence Service has highlighted the growing involvement of organized crime in vehicle theft. Since 2022, the number of organized crime groups involved in these activities has increased by 62%. This organized approach has made it more challenging for law enforcement to curb the trend, further exacerbating the crisis.
Car thefts across southern Ontario are becoming more violent, with recent home invasion car thefts reported in Mississauga, Brampton, and Toronto. Police from several services have joined forces to form the Provincial Carjacking Joint Task Force, aimed at combating the increase in thefts in southern Ontario, which impact people’s lives and sense of security, disrupting daily lives and causing emotional distress.
The financial repercussions of this crisis are staggering. In 2023 alone, Canada's private auto insurers paid out $1.5 billion in theft claims, a significant increase from the annual average of $556 million between 2018 and 2021. This escalation underscores the urgent need for vehicle owners to understand the connection between stolen cars and the impact on insurance rates and other vehicle-related costs. The shortage of microchips and vehicle availability, along with high interest rates to lease a vehicle, are also impacting affordability.
Recent reports suggest a troubling connection between home invasions and high-end vehicle thefts. Criminals are increasingly targeting homes to steal keys and other valuables, making it easier to access and steal luxury vehicles. This trend has been particularly prevalent in the GTA and is now spreading to Waterloo, raising alarms among residents and insurers alike.
Home invasions not only result in the loss of valuable possessions but also lead to higher insurance premiums. Insurers are responding to the increased risk by requiring high-net-worth clients to install GPS trackers and other security measures in their vehicles. Failure to comply with these requirements can result in substantial premiums, further increasing the financial burden.
Implementing comprehensive strategies to protect against theft can ultimately contribute to a more secure and financially sustainable future for all involved.
To protect your home from invasions, consider installing high-quality locks, security cameras, and alarm systems. Ensure that all entry points, including windows and doors, are secure. Additionally, consider utilizing smart home technology to monitor and control your security systems remotely.
Raising awareness within your community can also be an effective deterrent. Participate in neighbourhood watch programs and stay informed about local crime trends. Sharing information and working together can help create a safer environment for everyone.
CAA Insurance suggests several measures to combat auto theft:
Équité Association, an organization that works to stop crime on behalf of the Canadian property and casualty insurance industry, has released a list of the top 10 most frequently stolen vehicles in the province last year:
If your car is stolen in Canada, the first step is to report the theft to your local police on a non-emergency line and complete a police report. Next, verify whether your car insurance policy includes coverage for theft. Contact your insurance provider to initiate a claim if you have comprehensive, specified perils, or all perils coverage.
Comprehensive auto insurance is designed to protect against losses unrelated to collisions, including theft, vandalism, and other non-collision events. This type of coverage is crucial if your vehicle is damaged due to theft, vandalism, natural disasters, or falling objects. It covers damages such as broken locks or smashed windows resulting from break-ins, as well as theft of car parts, including catalytic converters. If your car is stolen, comprehensive insurance with replacement cost coverage can help cover the replacement costs, less any deductible you have chosen.
At Cowan Private Client, we are dedicated to protecting what you are passionate about. Contact the Cowan Private Client team at cowanprivateclient@cowangroup.ca today to discuss safeguarding your home and vehicles.