By Hanna Beydoun, Coverage Supervisor, IBC —
In Canada, a automobile is stolen each 5 minutes. This nationwide disaster is disrupting the lives of Canadians and inflicting important misery and monetary pressure. From 2018 to 2023, auto theft losses surged over 254%, surpassing $1.5 billion in direct claims prices for personal passenger automobiles. Ontario has been hit the toughest, with auto theft losses exceeding an alarming $1 billion final 12 months alone. A part of the problem is {that a} rising variety of stolen automobiles are rebranded and bought to unsuspecting prospects in Canada via a follow referred to as reVINing.
Governments and regulation enforcement businesses have taken motion to assist handle the auto theft disaster:
- In Could 2024, the federal authorities launched the National Action Plan for Combatting Auto Theft, a considerate and complete blueprint for tackling auto theft. The federal government has since taken a number of steps to halt stolen automobiles alongside the auto theft transportation community, together with deploying a cellular X-ray scanner within the Larger Toronto Space (GTA) to help within the examination of delivery containers and investing $28 million to reinforce the capability of the Canada Border Companies Company.
- Police forces throughout the nation, specifically these within the GTA, have intensified their efforts to crack down on auto theft and related felony actions, together with carjackings.
- The Ontario authorities introduced a dedication of $100 million to determine a provincial auto theft workforce, arrange devoted prosecutorial helps, and enhance enforcement of violent thefts (reminiscent of carjackings) to a precedence stage. As well as, the federal government lately introduced a $134 million funding to buy 5 new police helicopters to be used within the GTA and Ottawa to assist struggle auto theft and arranged crime.
Authorities and regulation enforcement actions are welcome and can assist scale back the incidence of auto theft over time.
Nonetheless, the main focus thus far has largely been on stopping stolen automobiles from exiting the nation. Whereas vital, halting the export of stolen automobiles can’t be the only real focus. A rising variety of automobiles are stolen, rebranded, and bought to unsuspecting prospects right here in Canada via a follow referred to as ‘ReVINing’.
What’s ReVINing?
A VIN (vehicle identification number) is a novel code assigned to each automobile when it’s manufactured. This 17-character code features a serial quantity and different identifiers, offering details about the automobile’s make, mannequin, 12 months and place of manufacture – it’s like a fingerprint for automobiles.
ReVINing is the method whereby criminals illegally and fraudulently alter the VIN of a stolen automobile to hide its id, enabling the felony to register and promote the automobile to an unsuspecting purchaser.
ReVINing is a complicated course of that includes two essential steps:
- Accessing a reputable (albeit false) VIN: In Ontario, for instance, a felony may buy a registrant identification quantity (RIN) historical past for a small price, which would come with delicate info like VINs, making it simpler for criminals to disguise stolen automobiles with legitimate-looking identifiers. A RIN is a novel quantity assigned to every automobile proprietor in Ontario that tracks the automobiles they personal or have owned.
- Utilizing the false VIN to register the automobile: Criminals exploit procedural vulnerabilities at provincial registration authorities to fraudulently register the stolen automobile.
How can two automobiles have the identical VIN?
Provincial centres that administer automobile registration, reminiscent of ServiceOntario, do not need a system that checks if a VIN already exists in different jurisdictions. This implies a automobile could be registered in a single province with the identical VIN as a automobile registered in a distinct province. This loophole allows criminals to register stolen automobiles with a duplicated VIN, making it tough to trace and determine stolen automobiles throughout provincial borders.
Influence on shoppers
The buyer dangers related to reVINing are important. If the true id of a reVINed automobile is found, the unsuspecting purchaser may have their automobile seized and returned to the true proprietor, usually with no recourse for monetary compensation until the automobile was bought from a licensed seller. This not solely impacts the person purchaser but in addition drives up the price of auto insurance coverage for everybody. IBC estimates that in Ontario alone, auto theft added, on common, an additional $130 to drivers’ insurance coverage premiums.
Tackling reVINing
Whereas these points are significantly pronounced in Ontario, comparable points persist in different provinces as effectively, compromising the integrity of car registrations nationwide. Provincial governments can play a pivotal position in tackling reVINing by closing the loopholes that enable the exploitation of VINs. Particular measures value contemplating embody:
- Eliminating public entry to RINs: This can forestall criminals from simply acquiring detailed automobile info.
- Banning third-party VIN authorizations: Third-party registration permits somebody apart from the automobile proprietor to finish the registration course of on the proprietor’s behalf. Whereas this course of was initially meant for automobile sellers and dealerships, it inadvertently permits almost any particular person to switch registration of a automobile or register a automobile in one other individual’s identify. That is usually finished for comfort, however criminals exploit third-party registration by utilizing a faux id to register a stolen automobile. Limiting third-party authorization to people with energy of lawyer can scale back the variety of fraudulent registrations.
- Limiting using new automobile info assertion (NVIS) kinds to licensed automobile sellers: Auto producers produce an NVIS kind to register new automobiles for the primary time. Nonetheless, NVIS kinds are being solid and used to register automobiles with older mannequin years. Limiting their use to sellers can remove this loophole.
The federal authorities additionally has a essential position to play. The Nationwide Motion Plan for Combatting Auto Theft features a dedication to fight reVINing, particularly by urging the provinces and territories to take motion in opposition to fraudulent automobile registrations. Insurance coverage Bureau of Canada (IBC) is looking on the federal authorities to imagine a management position in fostering higher data-and information-sharing with provincial registries and shutting the automobile registration loopholes that criminals usually exploit. Establishing a Nationwide VIN Registry can fill this hole and promote seamless info sharing between provincial VIN registries.
About Insurance coverage Bureau of Canada
Established in 1964, Insurance coverage Bureau of Canada (IBC) is the nationwide trade affiliation representing Canada’s non-public house, auto and enterprise insurers. Its member firms make up the overwhelming majority of Canada’s extremely aggressive property and casualty (P&C) insurance coverage market. Because the main advocate for Canada’s non-public P&C insurers, IBC collaborates with governments, regulators and stakeholders to assist a aggressive atmosphere for the P&C insurance coverage trade to proceed to assist defend Canadians from the dangers of at present and tomorrow. IBC believes that Canadians worth and deserve a responsive and resilient non-public P&C insurance coverage trade that gives insurance coverage options to each people and companies.
For extra info, go to www.ibc.ca. When you have a query about house, auto or enterprise insurance coverage, contact IBC’s Shopper Data Centre at 1-844-2ask-IBC.
Supply: Insurance coverage Bureau of Canada (IBC)
