Canada is seeing a significant drop in auto theft nationwide, but fewer stolen vehicles are being recovered, according to a new report released Wednesday by Équité Association.
The organization’s Q1 2025 analysis shows a 23.3% decrease in vehicle thefts across the country compared to the same period last year. However, recovery rates of stolen vehicles have declined, with only 58.3% of stolen vehicles recovered in the first quarter of 2025, down from 63.1% in Q1 2024.
Source: Équité Association
Bryan Gast, national vice president of investigative services at Équité Association, attributes the decrease in thefts to “collective efforts and meaningful actions taken by key stakeholders over the past year aligned with the National Action Plan on Combatting Auto Theft.”
Despite this positive trend, Gast expressed concern about the declining recovery rate, suggesting that economic challenges and automotive tariffs are likely contributing factors.
“The concerning rate of unrecovered stolen vehicles is likely to continue as economic uncertainty and automotive tariffs make vehicles and parts more expensive,” Gast said. “Additionally, we know the criminal organizations behind these vehicle crimes are doing this to fund illicit activities in Canada.”
Équité Association’s analysis suggests a shift in criminal behaviour, with more vehicles potentially being stolen for “chop shops” where they are dismantled for parts, or subjected to VIN fraud—practices that became more prevalent during the vehicle supply shortages of the COVID pandemic.
The report defines chop shops as “illicit establishments that specialize in dismantling stolen vehicles, stripping them down to their essential components, and selling off the parts for profit.” These operations can also attempt to repair damaged vehicles using stolen parts, posing safety and legal risks to unsuspecting used car buyers.
Re-VIN fraud involves changing a vehicle identification number for fraudulent financial gain. The report notes that criminals sometimes insure a re-VINed vehicle and falsely report it stolen to collect insurance money, using the proceeds to finance illegal activities including drug trafficking.
Équité Association serves as the central point of collaboration between the insurance industry, law enforcement, Canada Border Services Agency, government, and industry partners in the fight against insurance crime in Canada.
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