Auto theft is no longer just a city crime story — it’s a nationwide insurance crisis. Despite efforts to curb auto theft, the impact of stolen vehicles and damage due to auto break-ins is pushing the value of auto theft claims into triple-digits — and the person who ends up paying the cost are everyday Canadian drivers.
In 2023, the value of auto theft claims in Canada hit a staggering $1.5 billion, according to the Insurance Bureau of Canada (IBC) — the highest ever recorded. And while there’s a slight dip in thefts in 2024, the financial scars are still fresh, and every Canadian driver is footing the bill through rising insurance premiums.
Over the last decade, auto theft claims have risen 138%, while the value of those claims has jumped a jaw-dropping 442%. Even though IBC data shows a 19% drop in theft claims in the first half of 2024 — with 17,647 claims valued at $544.7 million, compared to 21,907 claims worth $764.6 million in the first half of 2023 — the costs remain historically high.
The reason? Modern car theft isn’t a smash-and-grab. Today, it’s increasingly driven by organized crime networks, targeting high-end SUVs and exporting them to markets in the Middle East and West Africa. Even one successful theft of a luxury vehicle can cost insurers — and, in turn, drivers — tens of thousands of dollars.
Auto theft cost on Canadians
"Concerted actions by law enforcement, insurers, governments and drivers to combat theft are showing results, but more remains to be done," said Liam McGuinty, IBC’s vice-president of strategy, in a statement.
McGuinty explained that this triple-digit increase in the number and cost of auto theft claims has a serious impact on Canadian drivers. "Canada’s auto theft rates have soared in the last 10 years, placing pressure on drivers’ insurance premiums, compromising public safety and causing Canadians concern and trauma." McGuinty concedes that the frequency of theft dropped in the first half of 2024, but maintains that "auto theft in Canada remains significantly above historical trends."
How auto theft differs from province to province
While Ontario and Quebec saw some relief in early 2024 — theft claims dropped 16% and 41% respectively — other provinces are still on edge.
- Alberta: Theft claims rose 1% year-over-year in early 2024, but the value of those claims increased 11% — reflecting higher-end vehicles being stolen.
- Nova Scotia: Up 27%
- New Brunswick: Up 14%
Long-term trends still show steep increases over the past decade:
- Ontario: +291%
- New Brunswick: +203%
- Nova Scotia: +87%
- Alberta: +48%
- Quebec: +36%
Why are thieves getting away with it?
Thefts are increasingly high-tech. Criminals use relay attacks to hack keyless entry systems, clone VIN numbers (a tactic known as “re-VINing”), and ship stolen cars through Canadian ports, primarily in Montreal and Halifax. Despite increased federal funding to improve detection at ports, the pace of thefts continues to outstrip law enforcement efforts.
A 2024 CBSA investigation found that more than 75% of recovered stolen luxury vehicles were already loaded into shipping containers — destined for overseas resale before owners even noticed their cars missing.
How to protect your vehicle and your budget
Auto theft isn’t just a nuisance — it’s directly linked to rising insurance premiums. IBC warns that the average comprehensive coverage cost is rising in high-theft regions, particularly Ontario and Alberta. The price of protecting your car now reflects the odds of it disappearing from your driveway.
Regardless of the province or territory you live in, being prepared for the unthinkable with auto insurance can be a life-changer, and it doesn’t take much work to get coverage.
With YouSet — a digital insurance brokerage — the process of buying auto insurance is simple. All you need to do is fill in a bit of information about yourself, your vehicle and the coverage you want, and YouSet will provide you with a list of personalized, affordable insurance options.
You can choose the best option for you, complete the purchase within minutes and be ready to shield yourself against the economic stress that comes with car theft.
What government is doing
The federal government has committed $28 million to fighting auto theft in 2024 and beyond. Efforts include:
- Scanning technologies for ports
- A national task force to address re-VINing
- Expanded cooperation between CBSA, RCMP, and international agencies
In Ontario, new provincial regulations now allow insurers to better share VIN data and flag high-risk resale vehicles.
What can you do?
To protect your car — and help stem the tide — IBC recommends:
- Installing steering wheel locks or kill switches
- Parking in garages or well-lit areas
- Using tracking services or etching the VIN on glass
- Reviewing your insurance policy to ensure theft protection is included
The vehicles thieves love to steal
Not surprisingly, thieves tend to target certain types of vehicles. According to IBC data, new, high-end luxury vehicles continue to be popular targets for auto thieves, due in part to their desirability in illegal international markets.
"Fighting auto theft requires a whole-of-society approach. Now is not the time to take our collective foot off the accelerator in this fight," McGuinty said. "The auto theft crisis continues to negatively impact Canadians’ pocketbooks and their sense of safety. The property and casualty insurance industry remains committed to working alongside all orders of government and stakeholders to continue to address the national auto theft crisis."
While this increase in auto theft might urge you to double-check if you have the best car insurance possible, the fact that it’s so rampant that insurance premiums are rising might mean you need to look for other places in your budget to optimize your finances too.
With Rates.ca, not only can you find the ideal auto insurance policy for you, but you can also find the best home insurance, mortgage rates and credit cards.
You can use Rates.ca to find the cheapest car insurance near you, and right after use it to find the most ideal credit card to support your financial habits so you have a comprehensive understanding of the best way to handle your finances.
Bottom line
Auto theft in Canada may have peaked in 2023, but it remains a billion-dollar problem. Whether or not your car has been targeted, your insurance premiums are paying for someone else’s loss. And without aggressive federal and provincial action, the cost of doing nothing will continue to rise.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
