Newly released data from Insurance Bureau of Canada (IBC) shows that the cost of auto theft continued to climb last year and is up dramatically over the past three years in Alberta.
Auto theft claims costs were $110.3 million in 2024 compared to $67.0 million in 2021, an increase of 65%. The two cities hit hardest are Calgary and Edmonton, which saw auto theft claims cost increases of 81% and 79% between 2021 and 2024. Looking at the longer-term trend, since 2014, auto theft costs across the province have risen by 161%.
“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, 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.”
Auto theft disrupts lives and creates fear in communities across the province, with the province’s city centres being hit the hardest.
Top Five Alberta Cities by Increase in Auto Theft Claims Costs, 2021 to 2024
| Year | Calgary | Edmonton | Grande Prairie | Fort McMurray | Medicine Hat |
|---|---|---|---|---|---|
| 2021 | $20,634,171 | $15,993,051 | $2,707,609 | $2,053,324 | $390,761 |
| 2022 | $28,689,082 | $20,986,564 | $3,867,647 | $2,443,605 | $393,007 |
| 2023 | $33,733,586 | $26,027,020 | $3,748,017 | $3,541,830 | $694,016 |
| 2024 | $37,257,076 | $28,571,600 | $4,308,288 | $3,151,851 | $529,746 |
| 2021 - 2024 Increase | 81% | 79% | 59% | 53% | 36% |
The Alberta government has begun to take steps to address the auto theft issue, including only allowing people with an Alberta driver’s licence or ID to register a vehicle for someone else. This is a positive early step, but it is not enough. Alberta’s auto insurers urge the Alberta government to take the following actions:
Prohibit the vehicle information number (VIN) override function 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.
Alberta has seen an increase in reVINed vehicles and vehicles stolen for export, according to the 2024 Auto Theft Trend Report from Équité Association, a not-for-profit organization that helps insurers fight fraud.
Update and standardize vehicle bills of sale. Updating policies to standardize vehicle bills of sale would make it more difficult to sell stolen or reVINed vehicles.
Restrict third-party vehicle registrations to dealerships. The greater the number of people who can register a vehicle, the greater the fraud risk. Restricting this to licensed dealers helps prevent stolen or reVINed vehicles from entering the system
Implement an Insurance Validation Program (IVP). This would let law enforcement and provincial auto registries instantly confirm that a vehicle has active insurance, deterring uninsured driving.
“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.”
The rate cap aggravates the problem
As auto theft and other pressures climb, the cost of providing auto insurance continues to grow, yet for the past three years, Alberta has frozen or capped auto insurance rates below the cost of providing coverage – the longest period of government interference in auto insurance in Canadian history. With premiums no longer reflecting the cost of providing auto insurance coverage, Alberta auto insurers paid out $1.17 in claims and expenses for every $1 they earned in premiums in 2024. This is not sustainable and, as Alberta auto insurance is becoming financially untenable, insurers have been forced to restrict the sale of coverage leaving many drivers facing challenges securing the coverage they need.
Unless rates are permitted to reflect the actual cost of coverage, the ability of the Care-First model to deliver improved premiums will be placed in jeopardy. A new report from consulting firm MNP also found that the government’s intention to maintain the ability to sue in Alberta’s Care-First auto insurance model could add up to $136 to required premiums annually, further calling into question whether there will be any savings when the new system comes into place January 1, 2027.
