Losses from auto theft claims in Canada have surged dramatically over the past decade, according to new data from the Insurance Bureau of Canada (IBC).
While the first half of 2025 saw a decline in claims counts and losses compared to the same period in 2024, the long-term trend remains alarming, IBC said. Losses have risen 200% over 10 years, increasing from just over $120 million in the first half of 2015 to more than $360 million in the first half of 2025. Claims counts also increased 50% over the same period -- from 8,567 to 12,887.
These increases have a direct impact on the Canadian auto insurance market, the bureau said. Rising theft-related losses increase the amount insurers pay out in claims, placing upward pressure on premiums for policyholders. Higher claims frequency also affects risk assessments and underwriting decisions, with insurers adjusting coverage terms or premiums to account for regions and vehicle types more prone to theft.
Liam McGuinty, vice-president, Federal Affairs, IBC, explained that Canada's auto theft rates over the last decade have placed pressure on drivers' insurance premiums, compromised public safety and caused concern and trauma for Canadians. He added that stolen vehicles are often linked to organized crime, amplifying the societal and financial impact beyond individual claims.
The IBC also highlighted recent federal actions, including strengthened border security and tougher bail and sentencing laws for repeat offenders, as steps that have helped curb theft.
However, the organization stressed that additional measures are necessary to further reduce claims and maintain affordability for policyholders. Recommended steps included modernizing the Canadian Motor Vehicle Safety Standards to make vehicles harder to steal, strengthening the Canada Border Services Agency to prevent stolen vehicles from leaving the country, and expanding data-sharing through the Interprovincial Record Exchange.
McGuinty noted that coordinated actions by law enforcement, insurers, governments, and drivers are showing progress, but more is needed. He emphasized that addressing auto theft is essential for stabilizing insurance costs and protecting policyholders.
Effective prevention measures, from stricter vehicle security standards to coordinated law enforcement efforts, can help insurers reduce claims payouts and maintain the sustainability of the auto insurance system, McGuinty added.
