"Navigating Auto Theft Challenges: Insurers Encourage Tracking Devices as GTA Faces Soaring Claim Costs"

 "Navigating Auto Theft Challenges: Insurers Encourage Tracking Devices as GTA Faces Soaring Claim Costs"

"Navigating Auto Theft Challenges: Insurers Encourage Tracking Devices as GTA Faces Soaring Claim Costs"

As the Greater Toronto Area grapples with a surge in auto thefts, insurance companies are taking innovative measures to combat the escalating problem.

 In 2022 alone, Canadian insurers paid out over $1 billion in claims for stolen vehicles, with the GTA accounting for around $500 million of that total, according to the Insurance Bureau of Canada.

To address this pervasive issue, some insurance providers are urging owners of frequently targeted vehicles to install tracking devices. 

This move aims not only to recover stolen vehicles but also to deter thefts in the first place. The latest initiative has stirred mixed reactions among vehicle owners, who express concerns about installation options and associated costs.

Samantha Sannella, a Jeep Rubicon owner in Toronto, shared her experience of receiving a letter from her insurer, notifying her of the requirement to install a TAG vehicle tracking system or face a $500 surcharge. While understanding the necessity, she voiced a desire for more choices in selecting the tracking system provider.

Another vehicle owner, Steve Gimza, received a similar letter but was pleased that his insurance covered the cost of installing the TAG system for his Honda CR-V. Gimza emphasized that he believes the responsibility for such security measures lies with the insurance company.

Guillaume Lamy, senior vice president of personal insurance at Belairdirect, affirmed the efficacy of TAG technology in addressing the auto theft problem. Belairdirect, along with Desjardins, confirmed sending letters to select customers in Ontario and Quebec, encouraging TAG system installations.

The alarming rise in vehicle thefts, coupled with an increase in violent carjackings, has prompted insurers to proactively combat the issue.

 According to Amanda Dean, vice president for Ontario at the Insurance Bureau of Canada, the insurance industry's efforts include incentivizing consumers to adopt prescribed measures, such as approved aftermarket tracking devices, to mitigate theft risks.

Dean emphasized the need for collaborative action, urging governments, law enforcement, and car manufacturers to join forces with the insurance industry in tackling the escalating problem of auto theft.

 As insurers grapple with rising claim costs, their call for a collective approach underscores the complexity of addressing this multifaceted challenge.

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