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OVERVIEW
Striking Facts
Automobile theft is a widespread phenomenon in industrialized countries. According to Interpol, 3 million
vehicles are stolen in the world every year. Worldwide, the profits from the sale of stolen vehicles are
somewhere in the order of US$19 billion.
A complex problem
In Québec, in 2009, more than 27,500 vehicles
were stolen, which is 1 vehicle every 14
minutes. In order to compensate the owners of
stolen vehicles, insurers paid out more than
approximately $230 million in 2009. Vehicle
theft occurs throughout Canada where more than
108,000 vehicles were stolen in 2009. Although
the theft of motorized vehicles affects the
entire country, the problem and its
socioeconomic consequences vary from one
province to the next.
In Western Canada, namely Alberta, Manitoba
and Saskatchewan, most thefts are opportunistic
in nature. This type of theft is referred to as
"joyriding." An opportunistic theft is committed
for reasons other than economic ones, namely for
pleasure, as a result of a dare or in order to
obtain a vehicle needed to commit a crime. Most
of these thefts are committed by young people.
Québec: a hub for organized networks
In the case of Ontario, British Columbia and
Québec, automobile theft is very different.
According to Statistics Canada, in 2009, 22,175 vehicles were stolen in Ontario, 19,614 in
Québec and more than 22,175 in British Columbia.
Furthermore, the thefts were not committed for
the same reasons as in the western part of the
country. Automobile theft in Québec and Ontario
is linked to the presence of organized theft
rings. This observation is based on the recovery
rate of stolen vehicles in these regions. The
recovery rate for vehicles stolen in the greater
Toronto area, in 2007, was 67%. For Montréal,
the situation is even more disturbing since the
percentage of vehicles that were stolen and then
found within the territory of Montréal was only
31%.
These figures confirm Québec's reputation as the hub for automobile theft in Canada and even North America.
The networks of thieves operating in Québec are very well structured and efficient.
How is a vehicle stolen?
As a general rule, the theft of a vehicle by an organized network is conducted in the following manner :
1. The thief spots a vehicle, frequently in a parking lot (shopping centre, airport, etc.). In most cases,
the thief will have received an order from a network for a particular model;
2. He/she steals the vehicle. For an experienced thief, the actual theft will take between 30 seconds
and
three minutes, depending on whether or not the vehicle is equipped with a protection system.
What happens to the stolen vehicle?
A vehicle stolen by a professional network will be disposed of in one of three ways: it will be dismantled for
parts, exported or cloned/made over.
Parts
Vehicles are dismantled to supply the illegal recycled-parts market. The stolen vehicle is taken to an illicit
workshop or "chop shop" where it is wholly or partially stripped. The parts are then sold on the illegal
recycled-parts market in Québec as well as abroad.
This market operates like any other, that is, on the basis of supply and demand. Generally speaking, the vehicles
that are the most likely targets for theft for their parts are the best-selling models because demand for
recycled parts for such vehicles increases with their popularity.
Export
In certain parts of the world, the demand for stolen top-of-the-line vehicles from North America continues to
grow.
Québec and Ontario are strategically positioned for exporting stolen vehicles. Montréal and Toronto are both
located near the American border, as well as major waterways, which facilitates the work of theft rings involved
in exporting vehicles.
According to the Investigative Services Division of the Insurance Bureau of Canada (IBC), stolen vehicles are
exported primarily to Eastern Europe, Russia, the Middle East, South America, Africa, the Caribbean and
Southeast Asia, where they can be sold for a huge profit. For example, a vehicle such as a Jeep Grand Cherokee
can provide a theft ring with a profit of $97,000 (source: IBC Investigative Services Division).
Vehicles most likely to be stolen for this reason are luxury vehicles and late model sports utility vehicles.
Makeovers and cloning
A car theft ring procures a severely damaged vehicle (SDV) on the legal market, and then steals a vehicle with
similar characteristics. The thieves then transfer the vehicle identification number (VIN) of the SDV to the
stolen vehicle, therefore giving it the identity of the damaged vehicle. This operation is called "making over"
a stolen vehicle.
"Cloning" varies somewhat from making over a vehicle. A VIN is taken from a parked car. The thieves use this
information on an identical, but stolen, vehicle and register the cloned vehicle in another province.
In both cases, the vehicles are sold to bona fide purchasers. As is the case with exporting, cloning and vehicle
makeovers are a major source of profit for theft rings. If we take the example of the stolen Jeep Grand Cherokee
once again, the network could make a profit of $40,000 (source: IBC's Investigative Services Division).
Any type of vehicle can be stolen for purposes of a makeover or cloning but, generally speaking, thieves prefer
newer models because of their higher resale value.
Consequences of automobile theft
How does automobile theft affect Québec automobile insurance policyholders?
First of all, Québec policyholders are affected as citizens. The costs of automobile theft in Canada and Québec
are high. In the year 2000, the Insurance Bureau of Canada commissioned a study of the social costs of
automobile theft in Canada, which in 1998 totalled $851.7 million. These costs include claims paid by
insurance companies ($600 million), health care ($129 million), costs to the judicial system ($85 million)
and costs related to police forces ($37 million). Québec alone is responsible for 48.8% of the total Canadian
bill, with social costs estimated to be $415.6 million (Standard & Poor's).
Furthermore, automobile theft is as much an integral part of organized crime as drug trafficking, money
laundering, trafficking in firearms and prostitution. According to Statistics Canada, 60% of Canada's criminal
organizations are involved in automobile theft.
Young people are a target of choice for organizations that use
them to commit this offence. According to the Ministère de
la Sécurité publique du Québec (MSP), 33,5 % of all
individuals accused of car theft in 2006 were 18 years of
age or less.
Quebecers are also affected as consumers when they pay their automobile insurance premiums. In the year
2006, insurance companies paid claims for car thefts totalling $300 million in Québec alone. Insurance companies must
devote 10% of their policyholders' insurance premiums to cover claims for thefts, regardless of whether
policyholders have been victims of theft or not. For example, if a policyholder's premium is $1,000, $100 will
be used to pay for claims related to automobile theft.
Possible solutions
Joint action is the only possible strategy for effectively combatting automobile theft. The search for solutions
must therefore involve collaboration among the various organizations affected by this problem, whether they are
in the public or private sector.
It is certain that motor vehicle theft will always be a topic of concern, in the sense that no one can pretend to
completely put an end to this scourge. On the other hand, it is possible to reduce its overall social and
economic cost. Here are some of the proposed solutions to help us reach this objective.
Importing and exporting damaged vehicles
In addition to the purchase of a scanner for the port of Montréal, greater control over the entry and exit of
vehicles would be a step in the right direction. As far as imports are concerned, improved control would have
the effect of making it more difficult to use seriously damaged American vehicles to makeover vehicles stolen
in Canada. As for export, the obligation to declare the exported vehicle (which is not mandatory at the
present time, since an automobile is considered to be personal property) would avoid giving free reign to
those who would use the VINs from such vehicles to clone those stolen.
Recycled parts dealers
One of the solutions for the recycled parts market would be to tighten scrutiny of those persons who request
permits (judicial records) and to also apply the Highway Safety Code, which makes provision for monitoring
visits to recycled parts dealers, to the letter. At the present time, these visits are still too infrequent.
During inspections made as part of a City of Montréal Police force pilot project, it was shown that only one
recycled parts dealer out of ten in Montréal had met the provisions of the Code with respect to the operation
of a recycled automobile parts business.
Vehicle protection
Consumers have their role to play in preventing automobile theft. They must adopt more responsible behaviours
(locking doors, closing windows, removing keys from the ignition, etc.). The installation of an adequate
protection system for their vehicles is another way consumers can prevent theft.
Police
Police work is essential in the fight against automobile theft. Presently, it seems that police officers could
have better training in this field. Furthermore, police forces must refresh their members' expertise when it
comes to identifying stolen vehicles. Finally, since automobile theft is an integral part of organized crime,
an increase in the financial and human resources dedicated to this type of theft should be contemplated.
Judicial aspect
In Québec, an individual must re-offend several times before receiving a prison sentence for vehicle theft.
Furthermore, fines are extremely low compared to the profits generated by the illegal trade in stolen vehicles.
Money is an important factor in this war against car theft, and imposing higher fines on thieves could make
automobile theft more difficult, less profitable and, as a result, less attractive.
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