Auto theft claims and losses in Canada fell sharply in 2025 but remain well above historical levels, according to newly released figures from the Insurance Bureau of Canada (IBC).
The bureau is warning governments and law enforcement not to ease off, arguing that the risk to public safety and insurance affordability is still acute.
From 2024 to 2025, the number of theft claims dropped 24% nationwide, while the value of theft claims declined 30%. Even with that improvement, theft-related losses are almost three times higher than a decade ago. In 2015, auto theft claims totaled $269.1 million across 18,766 claims; by 2025, they had climbed to $723.9 million on 25,834 claims. Over that 10-year period, claim counts rose 38%, while the dollar value of theft claims surged 169%.
“The recent decrease in auto thefts is the result of concrete actions by governments of all orders, as well as law enforcement,” said Liam McGuinty, vice president, federal affairs at IBC. “While progress is being made, auto theft remains far above historical levels, and Canadians are still bearing the consequences through increased public safety risks.”
The latest figures follow two years of crisis-level activity. Theft-related losses jumped from $728.6 million in 2021 to $1.24 billion in 2022, then to $1.50 billion in 2023, before easing to just over $1.03 billion in 2024 and $723.9 million in 2025. Claims counts rose from 27,174 in 2021 to 38,144 in 2022 and 43,234 in 2023, then fell back to 34,141 in 2024 and 25,834 in 2025.
That trajectory translates into welcome relief on frequency and severity after a period when stolen-vehicle losses became one of the most significant cost drivers in personal auto, particularly in Ontario, Quebec and some Atlantic markets. But the improvement is from an exceptionally high base. Even at 2025 levels, theft losses remain far above what many pricing models were calibrated for in the mid‑2010s, keeping pressure on underwriting, rating and product design.
Brokers will already have seen how the spike in theft losses has fed through to the market. Many carriers have tightened underwriting on high‑theft vehicles, introduced surcharges or minimum deductibles and, in some cases, required additional anti‑theft measures such as tracking devices before offering comprehensive coverage. While the recent drop in claims may slow the pace of future increases, there is little immediate scope for broad premium reductions while loss costs remain substantially higher than a decade ago.
IBC credits recent federal action as a key factor behind the decline in thefts. Ottawa has increased investments in Canada Border Services Agency (CBSA) capacity and technology and granted the agency greater access to transporter and warehouse facilities at ports, where many stolen vehicles are believed to be loaded into containers and shipped overseas. The federal government has also proposed amendments to the Criminal Code aimed at further deterring auto theft, including stiffer penalties for repeat and organized offenders.
At the provincial level, IBC commended the Ontario government for ongoing investments in anti‑theft initiatives and efforts to disrupt organized crime networks linked to vehicle theft. Measures have included specialized police task forces, funding for investigative units and information‑sharing agreements targeting export channels.
“Auto theft is trending in the right direction after two years of concerted action, but the job is far from done,” McGuinty said. “This is exactly the moment for governments to keep their foot on the gas and push these numbers down further.”
Looking ahead, the bureau is urging the federal government to fully implement its National Action Plan on Combatting Auto Theft. One priority is to “make automobiles harder to steal” by finalizing proposed amendments to Canada’s Motor Vehicle Safety Standards. The changes would replace outdated immobilization requirements with modern theft‑protection standards aligned with current international norms, addressing vulnerabilities that organized theft rings have exploited in certain vehicle makes and models.
IBC is also calling for stronger measures to prevent stolen vehicles from leaving the country. It wanted tighter oversight of Canada’s vehicle export system, including better regulation and supervision of freight forwarders and warehouse operators. According to the bureau, weak oversight of “fly‑by‑night” freight forwarders has made it too easy for bad actors to move stolen vehicles through ports with limited scrutiny, undermining the impact of domestic policing efforts.
Auto theft is no longer a marginal line item but a structural risk that needs to be built into underwriting assumptions, capital models and reinsurance strategies. Carriers are likely to continue refining rating by vehicle, location and usage; investing in analytics to identify emerging theft patterns; and partnering with automakers and technology providers on telematics, tracking and immobilization solutions.
Brokers can expect theft to remain a front‑of‑mind issue in client conversations, especially in high‑risk regions or for owners of popular targeted vehicles. Advising customers on risk‑mitigation steps will remain important, as will setting expectations around coverage conditions and pricing, IBC said.
