What is the total cost of auto theft in Canada?

Q: Which cars are more likely to be stolen?

Car models that are more likely to be stolen include trucks and SUVs. According to Équité Association ’s stolen vehicle report, the most stolen cars include the 2021 Toyota Highlander, 2022 Dodge RAM 1500 Series, 2022 Lexus RX Series and 2021 Honda CR-V. All of these models rank in the top four of Canada’s top 10 most stolen vehicles list.

Protect your vehicle from the threat of auto theft with a comprehensive insurance policy. Compare affordable quotes online and secure your best rate today.

Alyssa Prizzon, Content Marketing Strategist

October 14, 2025

Auto theft is a serious threat across Canada. In 2022, the Insurance Bureau of Canada (IBC) declared it a crisis in the country, reporting 105,000 vehicles stolen nationwide. Today, that number has decreased to just over 23,000 stolen cars in the first half of 2025 (a 46,000-stolen-vehicle full-year pace). While vehicle theft is trending towards pre-crisis levels, the financial impact of having your car stolen can be devastating.

In fact, without comprehensive auto insurance and endorsements, you’ll be left to pay for your vehicle's replacement and temporary transportation out of pocket. If you financed the vehicle, which most Canadians do, you’ll also be responsible for paying the remaining loan balance on the car. Not to mention, you should invest in anti-theft technology to help prevent another potential theft. All of these expenses can rack up to tens of thousands of dollars.

Let’s break down the total cost of auto theft in Canada and how the right insurance coverage can help reduce the financial toll.

Key takeaways

Comprehensive auto insurance with endorsements offers the most cost savings after auto theft, delivering higher insurance payouts and lower out-of-pocket costs.

Drivers with endorsements will pay just $1,400 out-of-pocket if their car is stolen, compared to $4,700 (no endorsements) and $33,563 (liability only).

Endorsements such as rental car (loss of use) and waiver of depreciation add approximately $25/month to insurance premiums, but the advantages outweigh the costs.
Larger insurance claim payouts mean that drivers with endorsements can afford a larger down payment for their next vehicle, resulting in a lower financed balance.
Adding endorsements to comprehensive auto insurance can lead to significant savings if your car is stolen.

The true cost of auto theft: Sample scenario

The true cost of auto theft was calculated using Ratehub.ca’s 2025 data. See methodology below.

To calculate the total cost of auto theft, we created a driver profile who owns a 2021 Toyota Highlander, the number one most stolen vehicle in Canada. We compared the out-of-pocket costs based on three levels of insurance:

Basic insurance (liability only)
Comprehensive + collision insurance
Comprehensive + collision with endorsements (loss of use and waiver of depreciation)

The table below highlights the significant difference in out-of-pocket expenses based on the type of insurance coverage a driver has. The driver with basic liability coverage will pay more than $33,000 out of pocket, compared to the driver with comprehensive insurance and endorsements, who will pay just $1,400.

Insurance Coverage	Basic (Liability Only)	Comprehensive + Collision (No Endorsements)	Comprehensive + Collision + Endorsements (Loss of Use & Waiver of Depreciation)
Initial Vehicle Purchase (2021)	$40,450 (MSRP)	$46,093 (MSRP + Financing)	$46,093 (MSRP + Financing)
Vehicle Value at Theft (2025)	$29,863	$29,863	$29,863
Initial Insurance Claim Payout	$0	$29,863	$40,450
Remaining Financing	$0	-$11,692	-$11,692
Total Insurance Claim Payout (After Financing)	$0	$18,171	$28,758
Claim Deductible	$0	-$1,000	-$1,000
Rental Car Cost	-$3,300	-$3,300	$0
TAG Anti-Theft Device	$400	$400	$400
Total Paid Out of Pocket	-$33,563	-$4,700	-$1,400
Total Claim Payout Balance (To Use to Buy Another Car)	$0	$13,471	$27,358

Open for methodology

How insurance coverage affects the cost of auto theft

Scenario 1: Basic liability

In this scenario, the driver purchased the car outright and therefore does not have a remaining financing balance to pay. However, since the driver only has basic coverage, they will not receive an insurance payout. As a result, they are responsible for paying to replace their car, renting a vehicle, and installing an anti-theft device (TAG) on their new vehicle.

Total out-of-pocket cost: -$33,563 with no insurance claim payout support.

Note: Most Canadians finance their vehicle and will likely have an outstanding loan balance to repay if their vehicle is stolen. In Canada, if you finance a car, your lender will require you to have both comprehensive and collision insurance. But it’s up to you to decide whether to add endorsements, such as rental car insurance and the waiver of depreciation, to your policy.

Scenario 2: Comprehensive + collision (no endorsements)

In this scenario, the driver financed their vehicle. Not only do they pay more out of pocket, compared to the driver with endorsements, but they also receive a smaller insurance payout. This is because the payout is based on the actual cash value (ACV), which considers the car's depreciation over time. Although the vehicle was purchased for $40,450, the driver received only $29,863 in the payout, resulting in a difference of approximately $10,000. The driver also has a balance of $11,692 on the vehicle, which was paid using the insurance payout. The driver did not pay for a rental car endorsement; therefore, they must pay for a rental car out of pocket and the installation of an anti-theft device on their new vehicle.

Total out-of-pocket costs: -$4,700 with +$13,471 leftover claims payout to buy a new vehicle (net cash of +$8,771).

Scenario 3: Comprehensive + collision + endorsements

In the last scenario, the driver with both the rental car and waiver of depreciation endorsements pays the least out of pocket and receives the largest insurance payout. This is because the waiver of depreciation covers the driver for up to five years to replace the vehicle in the event of theft or damage. The driver receives a payout equal to the original MSRP, which is $40,450. The remaining loan balance of $11,962 is covered by the payout, leaving a sizeable amount to put towards a new vehicle. Additionally, the driver is covered for a rental car, so they are only responsible for paying their deductible and the one-time installation cost of an anti-theft device.

Total out-of-pocket costs: -$1,400 with +$27,358 leftover claims payout to buy a new vehicle (net cash of +$25,958).

Key claims scenario finding: The driver with the most comprehensive insurance policy, including endorsements, is left with more than +$13,000 net cash difference after the claims process compared to the driver with only comprehensive insurance.

Also read: Replacement cost vs. actual cash value

What are the total cost savings?

It’s clear that having comprehensive insurance with endorsements results in the lowest out-of-pocket expenses and the largest insurance payout after auto theft. But what are the actual cost savings when factoring in the price of premiums?

The table below breaks down annual insurance rates based on the driver profile and what they’d pay over four years (the time period during which the car was stolen), totalling the out-of-pocket costs to cover the stolen vehicle.

The data show that paying for either comprehensive insurance or comprehensive insurance with endorsements results in over $20,000 in savings compared to basic coverage. Upgrading to comprehensive coverage with endorsements saves an additional $2,120 compared to only having comprehensive insurance.

Coverage Type	Basic (Liability Only)	Comprehensive + Collision (No Endorsements)	Comprehensive + Collision + Endorsements (Loss of Use & Waiver of Depreciation)
Premium (Annual)	$1,368	$3,170	$3,465
Premium (4 Years)	$5,472	$12,680	$13,860
Total Theft Cost Paid Out of Pocket	$33,563	$4,700	$1,400
Total Theft Cost (Premium + Out of Pocket Expenses)	$39,025	$17,380	$15,260
Total Savings (Compared to Basic Coverage)	-	$21,645	$23,765

Open for methodology

Final takeaways:

Adding rental car and waiver of depreciation endorsements to your policy adds about $300 per year ($25/month) to your premium. But the larger insurance payout, rental car coverage, and peace of mind more than outweigh the extra costs and are often worthwhile for most policyholders in Canada.

The endorsements provide an additional layer of protection, ensuring you are financially covered in the event of auto theft and have the funds to purchase or finance a replacement vehicle. Anyone buying a new vehicle should look for the best coverage they can get, including the waiver of depreciation, as it helps ensure financial protection when it matters most.

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After auto theft: Buying a new vehicle

Once you’ve received your insurance payout, it’s up to you to decide how to use that money. You could buy a car that’s similar or comparable, choose a cheaper used car, or decide not to replace your vehicle at all. Most Canadians who are targets of auto theft use the insurance payout to help finance a new vehicle. If you’re looking for resources to make a decision, check out our lists of the best-selling cars and top stolen cars in Canada.

The table below outlines how your insurance coverage affects your out-of-pocket expenses when replacing the stolen car. In this scenario, the driver is buying a vehicle of comparable value to the one that was stolen.

Vehicle Replacement	Basic (Liability Only)	Comprehensive + Collision (No Endorsements)	Comprehensive + Collision + Endorsements (Loss of Use & Waiver of Depreciation)
MSRP	$29,863	$29,863	$29,863
Available Down Payment (Insurance Payout)	$0	$18,171	$28,758
Financed (13% Tax + 5% APR)	No	5 Year Term	5 Year Term
Total Paid Over 5 Years	$29,863	$15,574	$4,987

Open for methodology

The driver with comprehensive coverage and endorsements will only need to finance about $5,000, compared to the $15,000 that the driver with just comprehensive insurance will finance.

Opting for more insurance coverage results in a larger payout that helps you minimize your financial expenses when purchasing a new car after an incident of auto theft.

Frequently asked questions

What is the waiver of depreciation endorsement?

The waiver of depreciation endorsement is an option drivers can add to their auto insurance policy. It guarantees that the insurance provider will pay out the total replacement value of the car (the original purchase price) if it is stolen or damaged. The endorsement is typically for new vehicles and provides coverage for three to five years, depending on the insurer. Without the endorsement, payouts for a stolen vehicle would be based on the actual cash value of the car, which takes into account depreciation.

Also read: How replacement car insurance works

How much do insurance endorsements cost in Canada?

Insurance endorsements in Canada range in price depending on the specific endorsement and insurance company; however, they are typically affordable. For example, the waiver of depreciation costs about $150-$200 per year ($12-$16 per month) and rental car coverage costs around $100 per year ($8 per month), depending on the insurance company.

The largest price increase you’ll see is adding on comprehensive and collision coverage. However, the actual rate you’ll receive depends on your car, location, provider, and other rating factors insurers use.

Also read: 5 Ontario car insurance endorsements worth adding

Can installing anti-theft devices lower my insurance rate?

Yes, installing anti-theft devices can lower your insurance rate, as several insurance companies in Canada offer drivers discounts or reduced surcharges. However, eligibility for discounts will vary depending on your insurance provider.

Anti-theft tracking devices, known as TAG, steering wheel locks, and VIN etching, help reduce the risk of theft and can help lower your premium. The one-time installation fee of $400 can save you from paying out-of-pocket expenses if your car is stolen.

Will my insurance go up if my car is stolen?

No, filing an insurance claim for a stolen car will not increase your insurance premiums because it is a comprehensive insurance claim, meaning you are not at fault for the incident. However, if you file multiple comprehensive insurance claims in a short time period, insurance companies may no longer offer you comprehensive coverage because you are considered high-risk. You may also experience higher insurance premiums if you drive a vehicle that is a frequent target of auto theft.

Also read: How stolen vehicle trends can impact your auto insurance

Does car insurance cover items stolen from my car?

No, car insurance typically does not cover items stolen from a car; it usually only covers the cost of the vehicle itself. If personal items are stolen, you’d have to make a claim under your homeowners' insurance policy, including home, condo and tenant insurance.

In most cases, filing a home insurance claim may not be worth it, as the value of stolen items usually does not exceed the deductible amount. For example, if your deductible is $1,000 and your stolen items are worth $500, you’d be paying more out of pocket just for filing the claim. But if higher-value items, such as electronics or sports equipment, are stolen and the loss exceeds your deductible, filing a claim may be worthwhile.

Which cars are more likely to be stolen?

The bottom line

Auto theft is a threat to all Canadian drivers, and the financial cost is more than the loss of your vehicle. Without the proper auto insurance, you could be faced with paying tens of thousands of dollars out-of-pocket to replace your stolen car, cover remaining loan payments, find transportation and more.

The total cost of auto theft analysis proves that purchasing comprehensive auto insurance with endorsements minimizes the expenses you’ll need to pay if you’re a victim of auto theft. While the premiums are higher, the long-term savings are well worth the additional costs.

If you’re unsure what your policy covers, review your coverage or compare car insurance quotes online to find the right coverage at an affordable rate today.

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