A surge in vehicle thefts across New Brunswick is contributing to rising auto insurance premiums, as insurers cite growing claims costs and more sophisticated methods used by thieves, according to a report from CBC.
Earlier this year, several major insurers were granted double-digit rate increases by the New Brunswick Insurance Board. Among them, Personal and Certas received approval for increases of up to 18%, with insurers pointing to the escalating frequency and cost of vehicle thefts as a key driver.
New Brunswick’s consumer advocate for insurance, Michèle Pelletier, said the impact of theft-related claims is being felt broadly, regardless of whether individual policyholders have filed claims themselves.
“When we see rising claims, it’s all of us that are going to pay for it,” Pelletier said, as quoted by the Canadian Press. “It’s many insurers that pay for a few claims. So we’re all put in the same bag, and then it’s divided.”
Insurance data supports the trend. According to the Insurance Bureau of Canada, auto thefts in New Brunswick have tripled over the past decade, with nearly 2,000 reported in RCMP-patrolled areas in 2023. While auto theft declined by nearly 19% nationwide last year, the Atlantic region saw no change, making it an outlier amid falling rates elsewhere.
Pelletier advised consumers to shop around, noting there are more than 30 insurers operating in the province, with varying approaches to pricing and risk. Some offer discounts for vehicles with anti-theft systems, such as GPS tracking or steering wheel locks. But even with added security, the risk of theft remains.
“It takes literally less than three minutes to steal your vehicle,” she said. “Sometimes it’s a question of seconds. They’re really organized.”
As theft tactics evolve, including the use of Wi-Fi jammers and relay attacks to bypass security systems, insurers are adapting their risk models and policyholders are seeing the cost reflected in their premiums.
Pelletier acknowledged that technology has helped improve recovery efforts but said the growing sophistication of theft networks poses ongoing challenges.
“Even if you do everything right, you can still be a target,” she said. “And we’re all paying the price for it.”
