Upcoming Care-First reforms give government an opportunity to boost affordability by tackling theft
Newly released data from Insurance Bureau of Canada (IBC) shows that auto theft rates in Alberta continue to soar well above historical averages, with theft-related costs continuing to place significant pressure on the auto insurance system. The total cost of auto theft claims declined slightly in the first half of 2025 (the latest available data) — thanks in part due to concerted efforts of governments and law enforcement. However, auto theft claims are still 76% higher than the same period in 2021.
Edmonton and Calgary have become the province’s epicentre for auto thefts, where the cost of auto theft claims is up 85% and 73%, respectively.
“Provincial and municipal governments, in partnership with law enforcement agencies have begun to make progress on efforts to reduce auto theft and data shows it’s making a difference,” said Aaron Sutherland, Vice-President, Pacific and Western, IBC. “It’s important to stay diligent as criminal networks continue operating in our communities and are growing more brazen in their actions to steal vehicles, often shipping them overseas to fund other illicit activities.”
To address the auto theft crisis, 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.
At the federal level, the recent announcement of the proposed amendments to the Canadian Motor Vehicle Safety Regulation reflects the continued commitment to its National Action Plan for Combatting Auto Theft and will make vehicles sold in Canada harder to steal. However, it is critical that the federal government continues to move swiftly to implement the comprehensive recommendations outlined in the plan, which includes further strengthening Canada Border Services Agency and its ability to prevent stolen vehicles from leaving the country and to improve data sharing between provinces.
“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.
The Cost of Auto Theft – City Comparison
The table below shows the total cost of claims related to auto theft for the first half of the specified year
The Future of Auto insurance in Alberta
Rising claims from auto theft was one of the key cost pressure cited in a recent report by Alberta’s Superintendent of Insurance. The Superintendent expects that “escalating claims costs due to inflation, bodily injury claims severity growth, vehicle theft rates and weather-related losses” will continue to grow.
Over the past few years:
Legal costs have grown 34% and are projected to grow 8.7% this year. Currently, 20% of what drivers pay for auto insurance go to pay for rising legal costs – that’s hundreds of dollars every year, whether a driver is involved in a collision or not.
The cost of delivering care and recovery benefits to those injured in a collision is up about 25% and is projected to grow nearly 12% this year.
During the more than three years of rate intervention, the Alberta government has increased the health levy on auto insurers by a staggering 70%.
That’s why the Alberta government is transitioning the province to a Care-First Auto insurance system on January 1, 2027. By taking action to reduce legal cost pressures, the new system is expected to improve premiums for drivers and dramatically enhance the care provided to those injured in collisions with the most generous benefits in the county.
“But that’s only half the solution,” said Sutherland. “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.”
*The data presented in this report is provided by General Insurance Statistical Agency/Agence Statistique d’Assurance Générale (GISA) and offered on an “as-is,” “where-is” basis. GISA makes no representations or warranties regarding the accuracy, completeness or applicability of the data to any specific situation, or in support on any conclusion or resulting course of action. Any conclusions, analyses or opinions drawn from the data do not reflect the views, positions or endorsements of GISA or its member regulators. GISA shall not be held responsible for any reliance on or use of the data in this report. IBC analysis is based on industry data from GISA systems.
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