Three Strikes and You’re Out? Victim of Multiple Vehicle Thefts Faces Insurance Penalties
As vehicle thefts continue to surge across the Greater Toronto Area (GTA), so do insurance rates for some victims. Mark Harrison, a Toronto resident, has experienced this firsthand. Despite recovering his car after three thefts in the past year, he’s facing a significant increase in his insurance premiums.
By Pat Taney
Harrison’s Toyota Highlander was stolen three times in a year.
“In 2023, we leased the vehicle. That first year, we had it stolen twice. Just recently, we had it stolen again for a third time,” Harrison explained.
His Etobicoke neighborhood is considered high-risk for vehicle thefts, and his Toyota Highlander has been a prime target. Fortunately, Harrison had installed an Apple AirTag, which helped him recover the vehicle each time. “I did this because this particular vehicle is known to be stolen, and because of that I was able to get the vehicle back,” he said.
After the third theft, Harrison received disappointing news from his insurance provider, Aviva.
“Aviva sent me a notice saying, because I’ve had my car stolen three times, I am now considered high risk,” Harrison reported. Consequently, Aviva dropped his comprehensive coverage, a critical component given his leased vehicle. His broker managed to find a high-risk insurer, but the premium increase was substantial.
“My insurance yearly was around $2,600, and for me to find an insurer offering comprehensive coverage it will increase to $11,500,” Harrison said.
He was understandably shocked by the nearly $9,000 jump and frustrated by the cancellation of his comprehensive coverage. “I’ve done everything I can to get my car back, and I’m still getting punished by the insurance company. What more could I have done?”
Speakers Corner contacted Aviva, and a spokesperson stated they offered Harrison a renewal without comprehensive coverage to keep premiums affordable. The spokesperson explained, “Most insurers have limitations on when comprehensive coverage is offered following multiple claims within three to five years. This limitation is seldom applied, as a very small percentage of customers exceed the threshold for comprehensive claims (including theft) in a three-year span.”
Adam Mitchell, CEO of Mitch Insurance Brokers, weighed in on Harrison’s case. “As I put my insurer hat on I’d say this person has had their vehicle stolen multiple times, even if they recover it every time, as an insurer, you would say, ‘well, it’s only a matter of time before that’s not recovered,’” Mitchell stated. He cautioned that drivers of high-theft-risk vehicles or those living in high-theft areas should anticipate higher premiums, even if their vehicles haven’t been stolen.
He drew an analogy: “It’s as if forest fires lit up in your neighborhood and your home hasn’t caught fire yet. Statistically, you’re now at a higher risk. If somebody is going to take that bet and offer the insurance on it, it will be at a higher rate.”
Mitchell noted that comprehensive coverage has become particularly risky for insurance providers. “Up until now, comprehensive as a claim was on a very stable historical line, it hasn’t deviated a lot. In the last couple of years, it’s gone spiking up over this current social problem of theft.” Mitchell added that while it’s easy to blame insurance companies, the theft issue significantly impacts their financial health, too.
“Recent reports show some insurance companies are at a 266 per cent ratio. So for every $1 they collect, to put towards theft, they’re paying out $2.60. It’s an unbelievable problem,” Mitchell said.
After reviewing Harrison’s case, Mitchell felt the initial quote was high, but Harrison was able to get his rate lowered to $8,435 by signing up for a program that tracks his driving. While this was an improvement, it remained a significant increase from his original premium. “I have no choice as I need comprehensive for my lease,” Harrison said. ”My only other option is to break the lease which would cost even more money.”
Harrison believes that auto manufacturers need to improve anti-theft technology, especially in high-risk vehicles. “If your car gets stolen, they’re the ones that are reaping the benefits. Insurance has to buy a new car, and if we do find it and get it back, we’re paying a lot of money to the dealerships to fix it,” Harrison said. “Either way they’re benefiting from this issue. I’d love to see them step up and see what they could do.”
Mitchell confirmed manufacturers are responding with increased anti-theft measures. “I think as the consumer public gets really frustrated by this and starts making buying decisions based on the technology that makes cars not as easily steal-able then that will send a signal to others they should follow suit,” Mitchell stated.
“Something has to change in this climate,” Harrison concluded. “Whether it’s stepped-up police patrols, or manufacturers doing more, this issue has to be addressed.”
