Three strikes and you’re out? Victim of multiple vehicle thefts calls foul on insurance industry

Mark Harrison’s vehicle has been stolen three times in the past year but he was able to get it back but despite his efforts he says he’s being punished by his insurance provider. Pat Taney reports.

By Pat Taney

As the number of vehicle thefts continue to skyrocket across the GTA, so do insurance rates for some victims.

One man, who’s been victimized multiple times but was able to recover his vehicle in each case, is speaking out about a massive jump to his rates after his original insurer dropped his comprehensive vehicle coverage.

Mark Harrison lives in an Etobicoke neighborhood that’s considered high risk for vehicle thefts.

“There have been a number of thefts over the past couple of years where I live.”

But Harrison’s Toyota Highlander has been the biggest target by far.

“In 2023, we leased the vehicle. That first year, we had it stolen twice. Just recently, we had it stolen again for a third time,Harrison told us.

As soon as he leased his vehicle, Harrison hid an Apple Airtag, which allowed him to track it down each time it was stolen.

“I did this because this particular vehicle is known to be stolen, and because of that I was able to get the vehicle back.”

There was damage which led to repairs, some very costly but after the third theft, he got bad news from his insurance provider Aviva.

“Aviva sent me a notice saying, because I’ve had my car stolen three times, I am now considered high risk.”

According to that notice, Aviva dropped his comprehensive coverage, something he needs as the vehicle is leased. His broker was able to find a high-risk insurer, but it came with a sticker shock.

“My insurance yearly was around $2,600, and for me to find an insurer offering comprehensive coverage it will increase to $11,500,” he said.

Harrison expected a bit of a rate hike but not a jump of nearly $9,000.  He’s also upset Aviva outright cancelled his comprehensive coverage.

“I’ve done everything I can to get my car back, and I’m still getting punished by the insurance company. What more could I have done?”

Speakers Corner contacted Aviva and a spokesperson said they offered Harrison a renewal without comprehensive coverage, to keep his premiums affordable.

“Most insurers have limitations on when comprehensive coverage is offered following multiple claims within three to five years. This limitation is seldom applied, as a very small percentage of customers exceed the threshold for comprehensive claims (including theft) in a three-year span,” the Spokesperson said.

Speakers Corner reached out to Adam Mitchell, CEO of Mitch Insurance Brokers to weigh in on Harrison’s case.

As I put my insurer hat on I’d say this person has had their vehicle stolen multiple times, even if they recover it every time, as an insurer, you would say, ‘well, it’s only a matter of time before that’s not recovered,’” he said.

Mitchell also cautions people who drive vehicles at a high risk of theft or live in neighbourhoods where many thefts occur not to be surprised if they start to see higher prices when they renew policies. Even if their vehicle hasn’t been stolen.

“It’s as if forest fires lit up in your neighborhood and your home hasn’t caught fire yet. Statistically, you’re now at a higher risk.  If somebody is going to take that bet and offer the insurance on it, it will be at a higher rate.”

Comprehensive coverage especially has become very risky for insurance providers.

“Up until now, comprehensive as a claim was on a very stable historical line, it hasn’t deviated a lot. In the last couple of years, it’s gone spiking up over this current social problem of theft.”

Mitchell says while it may be easy to blame insurance companies, the theft issue is impacting their bottom lines too.

“The way insurance operates from a business standpoint is for every dollar insurers bring in, they would love to be at a 95 per cent ratio, which means they’re making five cents on that one dollar that comes in,” Mitchell said. “A recent report came out last week showing one of our insurance companies is at a 266 per cent ratio. So for every $1 they collect, to put towards theft, they’re paying out $2.60. It’s an unbelievable problem.”

We asked Mitchell to take a look at Harrison’s case. While he understands why his premium was increased, he felt the quote he got was a bit high.

Harrison reached out to Mitchell and was able to get his rate lowered to $8,435 provided he signs up for a program that tracks his driving. A much better price — but still a large increase from the $2,600 he was paying.

“I have no choice as I need comprehensive for my lease,” he said. “My only other option is to break the lease which would cost even more money.”

Harrison also says auto manufacturers need to step up technology to prevent theft especially in vehicles considered high risk.

“If your car gets stolen, they’re the ones that are reaping the benefits. Insurance has to buy a new car, and if we do find it and get it back, we’re paying a lot of money to the dealerships to fix it,” Harrison said. “Either way they’re benefiting from this issue. I’d love to see them step up and see what they could do.”

Mitchell says there are vehicle manufacturers that are increasing anti-theft technology. 

“I think as the consumer public gets really frustrated by this and starts making buying decisions based on the technology that makes cars not as easily steal-able then that will send a signal to others they should follow suit.”

“Something has to change in this climate,” Harrison added. “Whether it’s stepped-up police patrols, or manufacturers doing more, this issue has to be addressed.”

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