Carjackings part of why you pay higher insurance premiums in Brampton
Published April 10, 2024 at 1:38 pm
Drivers in Brampton are more likely to get carjacked than nearly everywhere else in Ontario, a trend that’s just one part of why insurance premiums are so high in the city.
Auto thefts have been on a steady increase in Brampton, Mississauga and across the GTA for years with more than 40,000 stolen over the last two years, including in violent incidents like home invasions, relay thefts and carjackings.
Peel Regional Police received more than 7,000 stolen vehicle reports last year breaking the force’s record. And while police are working with industry leaders to curb the rising number of thefts, Brampton drivers are paying the bill for the auto theft crisis through their insurance premiums.
Brampton drivers are paying the highest premiums in the province at an average of $2,922 every year, according to numbers released by insurance comparison company MyChoice. And with around five out of every 1,000 Brampton drivers likely to experience a carjacking, the company says auto thefts are just one factor playing a part in the price of premiums.
Operating costs for insurers are also rising due to increased claims, inflation, ongoing vehicle and parts shortages and longer wait times for repairs. Canadian insurers paid out over $1 billion in claims for the first time in 2022.
The average estimated premium in Brampton for 2023 was $2,707, meaning drivers this year are paying around $200 more for their premiums every month.
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Peel Regional Police revealed last week that nearly 600 stolen vehicles had been recovered from the Port of Montreal. Most of the vehicles were stolen in Toronto, while Mississauga and Brampton had the second-highest tally at 125.
The report showed Toronto has an average premium of $2,139 and a carjacking rate of 3.32 per 1,000 residents.
Drivers in Brampton are around twice as likely to get carjacked compared to some parts of Ontario like Markham and Richmond Hill, which have insurance premiums of around $2,447 and $2,248, respectively.
The numbers show that carjackings alone aren’t the only reason Brampton drivers are being fleeced on their premiums, with collision rates, population density and road conditions all playing a part in setting costs, MyChoice said.
MyChoice says that the rise in carjackings is a problem for both providers and drivers, and recommends “all-perils insurance policies” that cover auto thefts.
Police also recommend taking steps to safeguard your vehicle from thieves by investing in an aftermarket locking device, security cameras or a GPS tracking device.
More than $1 billion in auto theft insurance claims were made in Ontario again last year. Some 5,806 vehicles were reported stolen in both Mississauga and Brampton in 2022, with another 4,482 thefts in Mississauga and 3,178 in Brampton last year for a total of 7,660.
Editor’s note: The original version of this article accidentally stated that premiums are $2,922 a month rather than a year. The article has been corrected. We regret the error.
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