It'll be me, Mr. Chair. Thank you very much.
Good afternoon.
Mr. Chair and honourable members, thank you for inviting us to share our views on the effort to combat auto theft.
My name is Ian Jack. I'm the vice-president of public affairs for CAA's national office here in Ottawa. My colleague, Elliott Silverstein, our director of government relations for insurance, joins me virtually today to help answer your questions.
Together, CAA and CAA Insurance represent the interests of 7.1 million motorists who are members of our not-for-profit association, whether that be AMA, BCAA or CAA, and tens of thousands of auto insurance clients whose policies are with CAA Insurance.
As such, we believe that we bring a unique perspective to the issue of auto theft informed by the practical, mental and financial costs of the issue to all Canadians.
Most of you will be familiar with the brand.
Founded in 1913, the Canadian Automobile Association, CAA for short, is a national organization representing eight automobile clubs and providing members with roadside assistance, insurance services, savings and discounts, and travel services.
The CAA Insurance Company was established in 1974 and, since then, has provided dependable, fair and trustworthy service to protect Canadians and what matters most to them.
CAA was pleased to be the only consumer advocate invited to the federal government's February auto theft summit to represent vehicle owners, who are the first line of defence in preventing auto theft and the most impacted in their daily lives when a theft does occur. The summit was just a first step and now, nearly three months later, we are still waiting on some key elements of the national strategy that was promised. The subject is no less urgent today. We need to get going, and not just with the starter's pistol but with concrete and short but reasonable timelines for results.
As you know, the costs of vehicle theft are rising astronomically. There have been $1.2 billion in additional payouts in 2022, and these costs are being passed on to consumers in the form of higher premiums and, in some cases, vehicle surcharges of up to $500 if you happen to be unlucky enough to own one of the top 10 most stolen vehicles. We believe that these costs will be significantly higher for 2023.
To put this in perspective, the impact of auto theft for the insurance industry is the equivalent of a flood or a tornado, except it is occurring year-round and with no end in sight.
CAA is concerned that if the rate of vehicle theft is not brought under control, auto-related costs will continue to rise for drivers already struggling with affordability issues. Insurance premiums, deductibles and overall costs are likely to go up for everyone if auto theft rates remain high.
We would like to underscore that soaring auto theft rates are more than just a cost pressure for consumers, as important as that is.
Victims of auto theft lose their means of getting to and from work and, occasionally, important appointments.
It can mean waiting months to get a vehicle replaced, or having to trade down in this inflationary market in order to get a vehicle. It has a mental toll as well. We are pleased with the actions taken to date by law enforcement and provincial and federal governments, but we need commitments, with reasonable but aggressive timelines, to further step up action to stem the flow of auto theft.
Specifically, CAA calls on the government to, first, empower the CBSA to do more enforcement at ports, specifically the Port of Montreal, by upping boots on the ground, installing cargo container scanners and prioritizing random inspections on exports, which today are virtually non-existent.
We call on the government to launch with a tight timeline an update on vehicle anti-theft standards, which are now more than 15 years old. This technology is being exploited by criminals to easily steal vehicles. CAA has pressed for a quick consultation period so that the regulations can be revised with minimal reasonable delay. Owners should not be left to incur the cost of installing expensive aftermarket anti-theft solutions to make up for inaction by the industry.
We call on the government to increase minimum penalties in the Criminal Code for repeat offenders. CAA was pleased to see that the budget acknowledged the need to enhance these penalties, but again, we would like to see action now, not in months or years.
We call on the government to deliver more funding and better coordination and intelligence sharing among law enforcement agencies. We have already seen the fruits of this in recent weeks. We need to see more of it.
In this regard, we need to re-examine the authorities and responsibilities given to rail police in such places as Mississauga, and the resources that the CBSA devotes to these areas.
Let us be clear: We understand that everyone has a part to play in combatting auto theft, including provinces, municipalities, local police, manufacturers and others. More consumer awareness is also needed. That is on us.
I can assure you that we are active on several fronts.
Simple tips like locking car doors, parking in the garage if you have one and using a Faraday pouch for your key fob at night can help prevent theft. These are messages that we are passing on.
With that short introduction, Mr. Chair, I will close. We welcome your questions.
Once again, thank you for inviting us to meet with the committee today.