Missy Elliott once asked, “Beep beep, who got the keys to the Jeep?” These days, the answer to that question is too often, “sophisticated international crime syndicates.”
Driving the news: Car thefts in Canada rose exponentially last year, costing insurers over $1 billion, per a new report from Équité Association, up $300 million from the previous year. Équité Association’s president called the spate of thefts a “national crisis.”
- Québec, Ontario, and Atlantic Canada led the pack (and not in a good way), with car theft claims increasing in these areas, by 50%, 48%, and 34%, respectively.
Why it’s happening: It's not hooligans inspired by the Fast & Furious franchise. Years-long supply chain issues have left auto inventories diminished and demand high, making auto theft a lucrative felony for organized crime.
- Stolen vehicles are usually shipped out to West Africa and Europe, where in-demand models that would fetch $100,000 at home can fetch up to $250,000.
It’s also a fairly easy crime to commit. The increased amount of tech in modern-day vehicles has created more methods for stealing them, some of which have gone viral on TikTok.
Why it matters: Auto thefts affect all car owners as they lead to increased insurance premiums, one Équité Association exec told The Globe and Mail, which “directly impacts Canadians at a time when inflation and affordability are putting excess strain on consumers.”
- While there are no precise numbers yet on how much the surge in car thefts has affected nationwide insurance premiums, the average Ontario auto insurance rate has risen by 12% since 2021.
Zoom out: In the US, some cities are actually suing Hyundai and Kia for failing to put adequate safety features in certain models, claiming that it’s contributed to the rash of thefts.—QH