Medicine Hat joins increasing provincial trend of auto theft claims

By MEDICINE HAT NEWS on July 16, 2025.

newsdesk@medicinehatnews.com

MEDICINE HAT NEWS

According to a news release from the Insurance Bureau of Canada, Medicine Hat has experienced a 36 per cent increase in auto thief claims costs since 2021, a trend that is similar throughout all urban centres in the province.

The report, published July 3, shows claims in the Hat from auto thefts have risen from more than $390,000 in 2021 to more than $529,000 last year.

The province’s largest cities, Calgary and Edmonton, top the provincial list of most auto theft claims with a climb of approximately 80 per cent in both centres.

Grade Prairie and Fort McMurray top have also experienced clams increase by more than 50 per cent over the last three years.

“The auto theft crisis bursitis in Alberta at a time when the province auto insurance system is already under tremendous strain from tariffs, inflation, growing legal costs, and rising vehicle repair and replacement costs,” said Aarom Sutherland, Insurance Bureau of Canada vice-president.

Steps are underway to help address the spike in auto thefts. The province has restricted anyone without an Alberta driver’s license or ID to register a vehicle from someone else.

“This is a positive early step, but it’s not enough,” reads the press release which exposes several loopholes that can be utilized for the purpose of fraud or theft.

Currently, registry agents can override the VIN input system, making it simple to change vehicle information. The ICB recommends the province update its standardized vehicle bills of sale making it more difficult to sell stolen vehicles.

The ICB also says the province needs to restrict third-party vehicle registrations to dealerships to help prevent stolen vehicles from entering the system.

“The provincial government took an important step last fall when announcing significant auto insurance reforms. But more is needed, including more measures to curb auto theft.”

This increase in auto theft claims is felt by all companies as the cost of providing auto insurance continues to grow, according to the IBC as they cannot increase current rates.

In Alberta the province intervened to put a cap on auto insurance rates in 2021. This means if you are deemed a ‘good driver,’ your insurance premium will be capped at 7.5 per cent.

The province defines a ‘good driver’ as someone with no at-fault accidents over the past six years, no criminal traffic conviction in the past four years and no major traffic conviction, including distracted driving or speeding in a school zone, over the last three years.

According to the ICB, auto insurers in the province pay $1.17 for every $1 earned in premiums last year, leaving an unsustainable business model.

“Alberta auto insurance is becoming financially untenable, insurers have been forced to restrict the sale of coverage leaving many drivers facing challenges securing the coverage they need,” reads the press release.

The province’s long-term goal is transition to a privately delivered, care-first auto insurance system by 2027.

The ICB says it is critical of the province’s decision to deliver a care-first model as it could add an additional $136 to drivers annual premiums as the model will allow those injured in collision to sue the at-fault driver, as well as recover out-of-pocket expenses beyond what is covered by their own insurance.

“No other province with a care-based system permits the ability to sue as envisioned in Alberta because of the significant cost it adds for drivers,” said Sutherland. “While doing nothing to improve care for those injured in the collision.”

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