Vehicle thefts dropped across Canada in the first half of 2025, but the decline did not lead to any immediate relief in auto insurance premiums, according to industry observers.
Data from Équité Association showed a 19% year-over-year decrease in personal vehicle thefts nationwide. Ontario recorded the largest drop at 26%. An estimated 23,000 vehicles were reported stolen between January and June, down from 34,000 during the same period in 2024.
Despite the improvement, the Insurance Bureau of Canada (IBC) said the overall cost burden remained high, limiting any potential reduction in premiums.
“It’s encouraging to see some small steps in the right direction,” said Hanna Beydoun, director of auto policy at IBC. “But the problem remained significantly above historical levels, and it was far from the only factor that contributed to the cost that drivers paid for auto insurance.”
Over the past decade, theft-related claims increased by more than 115%, while the associated costs rose 371%, according to the IBC. Beydoun said one year of lower thefts was a positive sign, but not enough to shift pricing trends in the insurance market.
“There was still a lot more work that remained to be done to get us out of this auto theft crisis,” she said.
Insurance rates continued to be influenced by multiple pressures. Repair costs rose by 22% since the start of the COVID-19 pandemic, driven in part by tariffs on auto parts. In Alberta, insurers also reported a rise in collision-related legal claims, which contributed to the upward pressure on premiums.
“Unless all the cost drivers were completely pulled out of the system, there was going to be continued upward pressure on auto insurance premiums across the country,” said Beydoun.
Brian Gast, national vice-president of investigative services at Équité Association, credited the decline in thefts to coordination between law enforcement, government, and insurers. However, he said criminal networks continued to adjust their tactics. Investigators reported more incidents involving vehicles being dismantled for parts or having vehicle identification numbers replaced.
“Even though the numbers were going down, they were still high,” said Gast. “It didn’t mean that we needed to take our foot off the gas.”
The long-term impact on insurance pricing remained uncertain, while individual vehicle owners continued to deal with theft-related losses. In Milton, Ontario, Ryan Tostik is still awaiting a settlement after his restored 2004 Chevy Silverado was stolen from a repair shop in July. He estimated the truck’s value at up to $60,000.
“I’d like to have the vehicle back. I wasn’t hopeful, but I was trying to be hopeful,” said Tostik, who had spent six years restoring the vehicle.
While the recent theft data reflected progress, insurers indicated that systemic cost drivers would need to be addressed before consumers saw meaningful changes to their insurance bills.
