April 6, 2006

Manitoba launches $22 million attack on auto theft
Public insurer covers immobilizer cost in final appeal to owners most at risk

Manitoba Public Insurance is offering immobilizers at no cost to 78,000 Winnipeg and commuter customers whose vehicles are most likely to be targeted by thieves – provided the installations are completed within the next six months.

The unprecedented strike against auto theft will cost up to $21.8 million but could reduce claims costs by more than that amount in the first year alone.

“This is an extreme move in response to an extreme problem,” said Marilyn McLaren, President and CEO of Manitoba Public Insurance. “We expect this targeted program to benefit all Manitobans in the form of lower theft claims costs.”

McLaren said vehicles eligible for the program are those most likely to be stolen in Manitoba. While they make up only 10 per cent of the vehicles on the road today, they account for 62 per cent of all thefts in the province. Winnipeg’s persistent auto theft problem cost premium payers about $37 million in 2004.

 “We can’t make a significant dent in the auto theft rate until these vehicles are protected with immobilizers,’’ she said. McLaren hopes the corporation can convince owners of these vehicles to take action by removing any remaining financial barriers to anti-theft protection.

“We know most of the vehicles targeted by thieves are more than 10 years old, and their owners have told us they don’t feel it’s worth it to spend any money on a vehicle that they may not own much longer,” she said. “We listened and we’re responding because as long as these vehicles are on the road they are prime targets for thieves and a danger to public safety.”

This latest initiative follows on the heels of the most generous auto theft incentive program ever offered in Canada. Just 10 months ago, Manitoba Public Insurance said it would contribute $140 – half the cost of an immobilizer that meets the national standard – and provide interest-free financing for up to five years for the balance. In addition, customers would continue to receive an annual insurance discount of $40.

While offered to all Manitobans, the goal of the incentive program announced in June was to immobilize 90 per cent of the vehicle fleet in Winnipeg and surrounding communities. Since then, about 12,000 Manitobans have protected their vehicles with immobilizers that meet the national standard. However, only about one in five participants in the program have been owners of vehicles most likely to be stolen. 

 “The corporation has reached out to these people with direct mail campaigns and phone calls to make sure they were aware of the program and to try to convince them to participate,’’ McLaren said. “Of 30,000 letters that we sent out to owners of these high risk vehicles, fewer than 1,000 responded by signing up for the program.

“This is our last chance to really determine if a voluntary immobilizer program can work in Manitoba.”

The new program targets 150 vehicle types that make up the “most at risk” group. These vehicles were identified by comparing the frequency of theft for 500 different make/model and year combinations. On average, vehicles in this group have a 1 in 22 chance of being stolen, compared to an average theft risk of 1 in 163 for all other vehicles in the province. The odds of theft are as high as 1 in 8 for some vehicles, such as the Dodge Caravan, Plymouth Voyager, Chrysler Intrepid and Jeep Grand Cherokee in the 1990-1994 model years.

To be eligible for the program, a vehicle must be listed on the corporation’s most-at-risk list and registered in Winnipeg or registered to commute into Winnipeg, which account for about 84 per cent of thefts in the province. The installation must be completed by September 30, 2006.

This program will complement, rather than replace, the incentive program announced last June. All vehicle owners are still eligible for the $140 discount, interest free financing and annual insurance discount.

Manitoba Public Insurance will contact most-at-risk-vehicle owners directly to make sure they know about the limited time offer to cover the cost of immobilizers. Letters will be sent to these customers in the next month.

Most-at-risk-vehicle owners who have already installed approved immobilizers will be reimbursed the $140 they spent, either by way of cheque or, if the amount was financed, with a $140 credit on their account.

To learn more about Manitoba Public Insurance’s immobilizer program, Manitobans can go to www.mpi.mb.ca or call the Autopac Line at 985-7000 (toll-free 1-800-665-2410, deaf access TTY/DDD 985-8832). The line is open from 7 a.m. to 9 p.m., Monday to Friday, and from 8:30 a.m. to 4 p.m. on Saturday.

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© 2006 Manitoba Public Insurance