New data from Insurance Bureau of Canada (IBC) shows Alberta's auto theft problem is still running far above historical norms, even as the province prepares to overhaul its auto insurance system under Care-First in 2027.
Newly released IBC data for H1 2025 showed that while the total cost of auto theft claims dipped slightly from 2024, theft-related costs remain 76% higher than in the same period of 2021. Edmonton and Calgary have become the epicenter of the problem, with theft claim costs up 85% and 73%, respectively, over that four-year span.
At the same time, Alberta continues to experience some of the highest auto theft levels in the country, with per‑capita theft rates that have recently outstripped Ontario and Quebec and total theft claim costs reaching well over $100 million in 2024.
"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.”
The Superintendent of Insurance has already flagged rising theft claims as one of several cost drivers bearing down on Alberta's market, alongside inflation, increasing injury severity and weather losses.
Over the past few years, legal costs have grown by 34% and are projected to rise a further 8.7% this year. IBC noted that around 20% of what drivers pay for auto insurance now goes to cover rising legal costs. The cost of delivering care and recovery benefits to injured motorists has also climbed, up about 25% in recent years and expected to grow nearly 12% this year.
On top of that, during more than three years of rate intervention, the Alberta government has increased the health levy on auto insurers by 70%, adding further pressure to premiums.
These trends are playing out unevenly across the province. Between 2021 and 2025, first-half theft claim costs rose by 73% in Calgary, 85% in Edmonton, 28% in Medicine Hat and 15.8% in Lethbridge, while Fort McMurray recorded a modest 8.3% decline over the same period, according to IBC's city-by-city breakdown.
That backdrop is driving Alberta’s transition to a Care‑First auto insurance system on Jan. 1, 2027. Under the model, the province said drivers will see average savings of about $400 per year, with substantially richer and faster‑access benefits.
Sutherland said that by taking action to reduce legal costs pressures, the new system is expected to improve premiums for drivers and improve care provided to those injured in collisions.
“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."
