Canada Auto Theft Losses Surge 200% Over Decade, Pressuring Insurers

New data from the Insurance Bureau of Canada (IBC) highlights a significant increase in auto theft claims and losses over the past decade, with losses rising by 200% from just over $120 million in the first half of 2015 to more than $360 million in the first half of 2025. Although the first half of 2025 saw a decrease in both claims counts and losses compared to the same period in 2024, the overall decade-long trend indicates a concerning rise in auto theft incidents in Canada. This surge in auto theft has implications for insurers and policyholders, contributing to increased insurance premiums and heightened public safety concerns. The IBC points to factors such as outdated Canadian Motor Vehicle Safety Standards, which have made vehicles easier to steal, as a key contributor to this upward trend. The Insurance Bureau of Canada commends recent federal government initiatives aimed at strengthening border security and enacting tougher bail and sentencing laws for repeat and violent offenders involved in vehicle theft. However, IBC emphasizes that these measures must be sustained and expanded to effectively address the ongoing auto theft crisis. The organization advocates for modernizing vehicle safety standards, enhancing the Canada Border Services Agency's capacity to prevent stolen vehicles from leaving the country, and improving interprovincial data sharing through the Interprovincial Record Exchange. These steps are viewed as essential in closing registration loopholes and curbing organized crime financing linked to stolen vehicles. The data analyzed excludes provinces such as Saskatchewan, Manitoba, and British Columbia due to lack of availability, focusing primarily on Ontario, Quebec, Alberta, and Atlantic provinces. The IBC continues to collaborate with insurers, government bodies, and law enforcement to mitigate the risks and financial impact of auto theft on the Canadian insurance market. Auto theft remains a pressing challenge with significant ramifications for the property and casualty insurance industry, policy pricing, and regulatory approaches concerning vehicle security and crime prevention in Canada.