Gone In 60 Seconds: The Rise In Auto Thefts And How To Protect Your Vehicle

COVID-19 has had a ripple effect on many different areas of our lives. Some are obvious like the direct impact on small businesses, whereas others may come as a surprise such as the increase in car thefts in Ontario. You may have seen these stories on the news; a person can unlock and drive away in your car without triggering an alarm or physically damaging the car all in under a minute.

According to Equite Association, a new organization formed from the investigative branch of the Insurance Bureau of Canada and CANATICS that analyzes auto thefts across the country, approximately 80,000 vehicles were stolen in 2021 nationwide.

How are cars being stolen so quickly?

The specific type of theft that is on the rise is keyless car theft. Carjackers have cultivated new technology that uses a high-tech radio signal amplifier to replicate a key fob. The device copies the signal so that when the burglar approaches the car, the car thinks the key is present. Some cars’ security systems are more vulnerable than others. Car thieves are particularly targeting Lexus, Honda, and Toyotas although no car is totally impermeable to these attacks. To make matters worse, the pandemic-driven shortage of semiconductor chips needed for new cars has increased all vehicles’ vulnerability to an attack.

Tips to reduce your risk

Despite these technological advances, there are still some precautions you can take to protect your vehicle. If available to you, the easiest measure is to park inside a garage. If you must park in the driveway, try adding roadblocks behind the vehicle, or adding a steering wheel lock to prevent the car from reversing out. In addition, never leave valuables in your vehicle overnight while parked in the driveway. This can make your vehicle more of a target. Some car owners have also purchased signal-blocking pouches which claim to block radio signals from the keyless entry system. However, some cars have been stolen despite this added layer of security. Lastly, having a security system with external cameras can work as a deterrent for car thieves. Security companies encourage homeowners to put a visible sign on the property to warn that the premise is being monitored. Although these tips won’t scare off every car thief, they do offer additional protection.

In the unfortunate event, your car is stolen, the first action is to call the police. Next, report the theft to your auto insurer to file a claim. If you have the right insurance in place, your policy should cover an automobile that has been involved with theft and put you in a rental until a settlement is completed, subject to limitations. Rental coverage starts 72 hours after the theft has been reported to the insurance company or police and is subject to a maximum payout of $900.

At Merit Insurance Brokers we are committed to ensuring you are adequately covered; we call it The Merit Difference. With this in mind, we offer our clients Optiom Prime Vehicle Replacement as additional coverage. If your primary insurer writes off your stolen vehicle as a total loss including theft of the entire automobile, Optiom will assist in the replacement claim.

With Optiom Prime they will pay the difference between the market value of your vehicle at the time of loss and your vehicle’s value at Optiom policy inception.

Example:

Value at time of Optiom policy inception – $19,600
12 months later vehicle is written off in minor accident or stolen
Vehicle depreciates by approx. 30% in 12 months- value $13,720
Primary insurer will pay Black Book value at time of loss,
estimated at $13,720 plus hst = $15,503
Optiom will pay difference on value $19,600-$13,720=$5,880 plus hst = $6,644.40.

Optiom also offers unique and comprehensive coverage because it also protects our clients from partial thefts of a vehicle. For example, our clients could claim through the OEM Replacement Parts benefit, Key Fob Replacement benefit if they needed to change their fob after the theft event, Partial Loss Deductible Reimbursement, or Diminished Vehicle Value benefit if there was also vandalism and significant damage to the vehicle but it isn’t written off. The Rental Vehicle Reimbursement benefit would be very important for either a total loss or a partial loss right now, as most clients are waiting over a month for either a replacement vehicle or repairs to be completed.

As part of our Merit Difference, we want to make sure you are always covered. Whether it is tips to help avoid an auto theft claim or offering vehicle replacement insurance, we are here for you every step of the way.