How stolen vehicle trends can impact your auto insurance

With files from Jessica Ho

This post was originally published on April 11, 2022, and was updated on July 30, 2025.

Stolen vehicle trends are a concern nationwide, and your car could be next. Here’s everything you need to know about car theft in Canada (and how it impacts your insurance). 

 

2025 Auto Theft Trend Report

Équité Association, a national authority on insurance crime and fraud prevention in Canada, recently released its First Half of 2025 Auto Theft Trend Report. The data shows a 19.1% decrease in stolen car trends across the country compared to the same period in 2024. According to the report, this is attributed to Équité’s partnerships with law enforcement, RCMP, CBSA and INTERPOL, and investments from PSC and provincial governments. 

While previous years have historically been high for vehicle theft, the report shows 2025 is trending towards pre-crisis levels. In the first half of the year, 23,094 cars have been stolen nationwide, compared to the 28,549 stolen vehicles in H1 2024. 

Regionally, provinces that experienced the highest levels of auto theft are also seeing a decline, with Ontario reporting a 25.9% decrease in stolen vehicles and Quebec a 22.2% decrease year-over-year. Western Canada also saw a 9.4% decrease in auto theft, with Alberta seeing a 12.5% decline. Lastly, Atlantic Canada has experienced a 9% decrease in stolen vehicles.

Regarding recovery rates, the national rate in the first half of the year was 56.5%, a 3.4 percentage point increase from the same period in 2024.  Similar to auto theft trends, recovery rates are returning to the pre-crisis levels of 57.2% seen in the first half of 2021.

Why are cars stolen?

Aside from the obvious joyride, there are a number of other reasons a thief would be incentivized to steal your car. For instance, stolen vehicles in Ontario have been found in other parts of the world, exported and resold in countries with limited supply due to the pandemic. On the other hand, stolen cars are also often resold to unsuspecting customers in close proximity, while other thieves may steal a ride to simply commit a crime.

How many cars are stolen in Canada each year?

According to the Insurance Bureau of Canada, over 105,000 vehicles were stolen across the country in 2022. That's one vehicle for every five minutes. While the number of stolen cars has dropped to 23,094 in the first half of 2025, auto theft remains a serious issue and continues to pose safety concerns for Canadians.

The rising cost of theft claims in Canada

The most recent data from the Insurance Bureau of Canada reveals that the claims cost of replacing stolen vehicles in the first half of 2024 amounted to approximately $544.7 million, a 28.8% decrease from the same period in 2023. This was viewed as a positive sign in the fight against the rising cost of stolen vehicles. No data has been released on the final 2024 total, but it was trending below 2022’s $1.3M.

Previously, the IBC revealed the cost to cover stolen vehicle claims peaked in 2023 at a record-breaking $1.5 billion – this was the second consecutive year in which costs surpassed $1 billion. Comparatively, between 2018 and 2021, the cost of stolen vehicle claims averaged $556 million each year, showing just how extreme a rise there had been across the country. 

Below is a table outlining the exact numbers for nationwide auto theft claims, including the claims count and claims cost from 2018 to 2023. Based on the numbers from the Insurance Bureau of Canada, the cost of stolen vehicle claims increased by 254% from 2018 to 2023.

^{*2024 totals are a projection based on reported mid-year totals}

How are car thieves stealing vehicles in Canada?

So, how are cars even taken, and what do you need to watch out for? Aside from making sure that your keys aren’t left in the vehicle, here are some common car theft trends you should take note of. 

Vehicle identification numbers (VIN)

Your vehicle identification number (VIN) is a 17-digit number (or QR code if you own a newer model), typically found on the left corner of your windshield or your driver's side door jamb. What many drivers don’t know, however, is that this number can reveal specific information about your vehicle, including details on how it can be stolen.

Re-vinning vehicles, a process where car thieves put a fake VIN on a stolen vehicle’s dashboard to pass the car off as a legitimate re-sale, is also another trend on the rise. That way, customers won’t be able to look up their prospective purchase on the reported stolen vehicle list before handing over the cash.

Smart key fobs

Many newer car models have smart key fobs to provide easy access when entering and exiting your vehicle, but they also come with a downside: security issues. Some criminals may attempt to intercept radio frequencies from nearby key fobs, breaking into your vehicle’s onboard diagnostic system. This allows new key fobs to be reprogrammed to match the one that gives you access to your car. 

Apple AirTags

Apple AirTags aren’t just used to locate your keys or pets, as some thieves are using them to outright steal vehicles. By tagging cars in a public parking lot, such as a busy shopping centre, criminals can continue tracking your vehicle after you drive off – not only is this an issue for car theft, but it’s also an issue for personal safety. 

Does car insurance cover theft?

Not all auto insurance policies cover car theft. It’s typically an optional coverage that drivers add on, so if you simply opt for the basic, mandatory car insurance in your province, you won’t have protection against auto theft.

To ensure you’ll be financially compensated in the event your vehicle is stolen, you’ll need one of the following three coverages:

Comprehensive – Typically the most popular option among the three, comprehensive car insurance protects you against risks that aren’t collision-related. So if your car is stolen, vandalized, or damaged from harsh weather, it has you covered. 

All perils – You can think of all perils coverage as a bundled package of both comprehensive and collision insurance. Plus, you’ll also be protected in the event a household member, repair technician, or employee steals your car (which comprehensive insurance doesn’t cover). 

Specified perils – Coverage for specified perils is exactly what it sounds like – protection against risks that are specified on your car insurance policy. Typically, this includes most risks, except for vandalism and falling objects; however, you should double-check to ensure that theft is covered by your policy.

Other theft protective coverages for your consideration

Gap Insurance - You should also consider purchasing gap insurance for leased and financed vehicles, as it can come in handy when making a stolen vehicle claim. Gap insurance is typically sold by a car dealership or a financier, and it ensures that you’re compensated for the difference in what you owe on the stolen vehicle (instead of just the actual cash value).  

Limited depreciation deduction - Replacement car insurance is similar to gap insurance, but it is typically sold by insurers in the form of a waiver. By adding the limited depreciation deduction endorsement (OPCF43, QEF43, SEF43), you can prevent your insurer from reducing your stolen vehicle payout to the depreciated value of your car.

How do stolen vehicle trends increase car insurance rates?

Auto insurers calculate your premium based on the probability of certain risk factors, including theft. So here’s how stolen vehicle trends in Canada can impact your car insurance rate.

Most stolen vehicles in Canada

Even though anyone can be a victim of car theft and any car can be a target, car thieves typically tend to target certain types of vehicles more often (e.g. high-end trucks and SUVs).  So, if you own a vehicle model that’s at a higher risk of being stolen, don’t be surprised if it costs you a little extra to insure, but by how much?

Based on the Équité Association list of the 10 most stolen vehicles in Canada, we calculated the cost of insurance for each car on the list against a comparable non-listed vehicle to see what the insurance premium difference would be.

The table below shows annual and percentage differences in purchasing a frequently stolen vehicle.

The driver profile is based on a 35-year-old male with a clean driving record in Etobicoke, Ontario, insured with $1,000 comprehensive and collision deductible, $1,000,000 in liability coverage and no bundling or telematics. 

Using Ratehub.ca’s auto insurance comparison tool, our data reveals that driving the #1 most stolen vehicle in Canada, the Toyota Highlander - a mid-tier SUV, can result in about a 20% increase in insurance premiums when compared to a non-listed vehicle.

When we examined the pricing differences on trucks, we didn’t see significant price increases. This is likely due to the fact that trucks inherently carry a higher risk of theft, so the price difference from a vehicle listed in the top 10 vs a non-listed vehicle wasn’t as drastic.

The price differences of luxury vehicles, like the Lexus RX Series and Land Rover Range Rover, resulted in dramatically higher insurance prices over their comparables. Given that a luxury vehicle is expensive to insure to begin with, any increased risk comes with a higher rate, as the repair and replacement costs associated with these vehicles are greater.

The only exception on the list is the GMC Yukon. Despite the high risk of auto theft, it often has lower insurance premiums vs its comparables, likely due to factors such as vehicle safety ratings, cheaper repair costs, and its vehicle pricing against its comparables (it’s generally viewed as one of the cheaper large SUV options).

Overall, the data shows that in general, insurance premiums for vehicles on the most stolen list result in higher rates because of the risk insurance providers take on. You should expect to pay upwards of +17% more on average, but the expected increase will vary widely depending on the age and type of vehicle.

Some insurers also apply a specific high-theft vehicle surcharge when calculating rates for frequently stolen vehicles. This could range from $500 to $1,500 annually. However, the surcharge may be waived by some providers if drivers install theft recovery devices. Other providers will simply charge more for cars that are more likely to be targeted for auto theft.

Note: The actual premium you’ll pay will depend on your location, driving and insurance history, vehicle(make, model, year) and the insurance company.

Locations with high car theft rates

Living in a location that is more prone to car theft can also increase your auto insurance premium. Cities, such as Toronto, Mississauga, and Ottawa, typically face higher rates of theft than rural areas, which causes the average rate of car insurance to go up. Although it’s unreasonable to move locations in an attempt to save some money on insurance, taking proactive measures, such as parking in a private garage, can help alleviate some of the higher insurance costs.

Also read: Car theft: Top cities for stolen vehicles in Canada

What to do if your car is stolen

After confirming that your car has been stolen, you should contact the police immediately to start the investigation process – you’ll need to give a detailed vehicle description, including its make, model, license plate, and VIN, as well as provide information surrounding the criminal event. The next step is to file a claim with your auto insurer, provided your policy covers you for theft. 

Filing an insurance claim for a stolen vehicle

Again, expect to provide your car insurance company with a detailed explanation surrounding the event (e.g. when/where the crime occurred, vehicle identification details). An investigation should be opened, and you may need to give your insurer a copy of the police report. 

If your car isn’t recovered, it’ll likely be declared a total loss – meaning, the cost to replace the vehicle is higher than its insured value. Unless you have a special add-on, such as gap insurance or limited depreciation deduction, that prevents your insurer from accounting for depreciation, your insurer will usually pay out the actual cash value of the vehicle. 

Actual cash value means you’ll be compensated for the market value of your vehicle, prior to it being stolen. This accounts for depreciation, and insurers often look at similar cars on the market to determine the exact number. The physical condition of the vehicle, such as rust, dents, and mileage remaining, can also be factored into the valuation. 

Also read: Replacement cost vs. actual cash value

What happens if my stolen vehicle is recovered?

Typically, auto insurance companies have a set waiting period of about 30 days before closing a theft claim. During this time, if your stolen car is found in good enough condition, you won’t receive the payout for a total loss. You can, however, still be compensated for the damages you’re insured against (e.g. vandalism).

If your stolen vehicle is recovered after the claim has been closed, you won’t need to take any additional action. You would have already received financial compensation from your insurance company, so possession of the car will be transferred under them instead. 

Also read: What happens if your stolen car is found?

Will a theft claim raise my insurance rate?

No, filing a stolen vehicle claim will not increase your auto insurance rate, as you are not at fault. But, if you live in an area where there’s a high volume of cars that are frequently stolen, you may face higher premiums as there is a greater risk. 

Keep in mind, you need to make sure you have the proper coverage in place to make a claim (e.g. comprehensive coverage). Given the significant cost of replacing a vehicle, ensuring you have the right coverage in the event you need to make a claim is important for any car owner.

Can multiple stolen vehicle claims impact my eligibility for car insurance?

Yes, for the most part, making several comprehensive insurance claims within a set number of years can lead to insurers limiting your ability to seek coverage for your car. They can’t deny insuring you, but they could opt not to offer you comprehensive coverage, which may force you to seek coverage elsewhere, like the non-standard market and at a higher rate. However, every provider has its own set of rules. For instance, if you make three comprehensive claims within three years under one provider, you could lose the option to make another claim on your policy completely.

It's important to note that comprehensive insurance doesn't just insure you against theft. It also provides coverage for all different parked car risks, such as severe weather and fallen trees, so even though it may be unlikely for you to be a theft victim more than once, it's not as unlikely that you'll need to file multiple comprehensive claims for other reasons.

As mentioned above, making a claim after your car is stolen is usually worth it. However, if you already have one theft claim on record, you should carefully consider whether to file additional comprehensive claims in the near future. It's crucial to weigh the necessity of claims against the potential long-term impact on your insurance costs and coverage availability. If you're unsure how multiple claims might affect your policy or access to coverage, it's wise to discuss this with your insurance broker.

This is especially important if you lease or finance your vehicle, as comprehensive insurance is typically required in these cases. You wouldn't want to be forced to pay for a new, high-risk policy in order to meet the coverage obligations on the agreement. 

Does car insurance cover theft of personal items?

Unfortunately, most car insurance policies won’t cover the theft of personal property inside the stolen vehicle. So if the wallet or watch you have stored in your glove compartment gets taken along with your car, you’re on your own – unless you have home insurance.

Home, condo, and tenant insurance could potentially cover the cost of these items, provided you have adequate protection (i.e. enough contents insurance). However, you’ll need to make a seperate claim with your home insurer, and you may be responsible for paying a deductible. This could cause an increase in your home insurance premium, so make sure it’s a worthwhile claim. You wouldn’t want to ruin your home insurance history, only to replace a few CDs and an old GPS.

What are auto insurance companies doing to prevent car theft?

Car theft isn't just a financial burden on drivers – as the number of claims rises, insurers will also be the ones facing expensive payouts. That's why many car insurance companies offer cheaper rates to those insuring vehicles equipped with anti-theft devices (or even raising prices for those that don't).

The bottom line

While we’re seeing a decrease in the volume of stolen vehicles YoY, the cost of theft is still a billion-dollar issue that is putting pressure on the insurance market. As a car owner, be sure to protect yourself with a sufficient car insurance policy – consider adding specific theft-related coverages, such as comprehensive insurance, loss of use insurance, and gap insurance. And as rates increase because of an increase in the cost of car theft, be sure to compare car insurance quotes with us to ensure you’re getting the best rate possible. 

Also read

• 10 safe driving tips to help lower your car insurance
• 15 ways to get the cheapest car insurance possible
• The average cost of car insurance in Ontario by age
• 7 car security tips to prevent car theft