The cost of auto theft in Alberta has jumped 65% over the past three years, putting growing strain on the province’s insurance market, according to new data released by the Insurance Bureau of Canada (IBC).Auto theft claims reached $110.3 million in 2024, up from $67 million in 2021. The hardest-hit cities were Calgary and Edmonton, where claim costs rose by 81% and 79%, respectively. Province-wide, theft-related costs have risen 161% since 2014.“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, IBC vice-president for Pacific and Western regions. “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.”.Between 2021 and 2024, Grande Prairie saw auto theft claims increase 59%, Fort McMurray 53%, and Medicine Hat 36%. While the province has introduced new rules — such as requiring an Alberta driver’s licence or ID to register a vehicle for someone else — insurers say that’s not enough.The IBC is urging the Alberta government to prohibit VIN override functions at registries, update and standardize vehicle bills of sale, restrict third-party registrations to licensed dealerships, and implement an Insurance Validation Program that would allow real-time confirmation of insurance by law enforcement and registries.Équité Association, which monitors insurance fraud trends, has flagged a rise in “reVINed” vehicles and thefts for export in Alberta..Meanwhile, insurers warn that the province’s ongoing cap on insurance premiums is worsening the situation. With costs rising and rates frozen, insurers paid out $1.17 in claims and expenses for every $1 earned in premiums in 2024. As a result, some have begun restricting coverage, leaving drivers struggling to secure insurance.A new report by consulting firm MNP warns that the upcoming Care-First insurance model, set to launch in 2027, may also fail to bring savings if lawsuits remain allowed. The report estimates this could add up to $136 per year to premiums.“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.”
