Does Insurance Cover Stolen Cars in Canada?
Does car insurance cover a stolen car?
Car insurance only covers the cost of a stolen car if you have specified perils, comprehensive, or all perils coverage on your policy. If you have one of the above coverage options, your policy should cover the actual cash value of your stolen vehicle at the time of loss, minus your deductible.
What type of car insurance covers theft?
Only three types of car insurance cover theft:
- Comprehensive coverage: Comprehensive insurance covers non-collision causes of damage or loss, including theft, attempted theft, and vandalism.
- Specified perils coverage: A limited version of comprehensive coverage, specified perils covers only a named list of perils included in your policy documents, including theft.
- All perils coverage: All perils coverage combines comprehensive and collision coverage and adds coverage for theft of a vehicle by a household member or employee.
These are the only types of car insurance that cover auto theft in Canada. All three are optional coverage. If you don’t have one of these types of coverage on your policy, you can’t get an insurance payout for a stolen car.
Does car insurance cover belongings stolen from your car?
The above types of coverage also cover property directly attached to or built into your car, such as a stereo or roof rack, but won’t cover personal property inside the vehicle (e.g., a laptop, phone, or sports equipment). If you have home insurance, your home insurance provider may cover the value of that lost property.
When your car is stolen, you may lose more than the actual vehicle. Personal items stored inside the car, such as electronics and valuables, may also be lost when a car is stolen—but car insurance won’t cover the theft of personal belongings.
Home insurance covers personal belongings inside a stolen car, but if your home and car insurance are through different providers, you’ll be responsible for paying two separate deductibles, not to mention filing and navigating two separate claims. If your home and car insurance are bundled, you can simplify the claim process and often pay a single deductible.
What to do if your car is stolen
If you believe your car was stolen, contact the authorities immediately to report the theft. Provide as much information about the stolen car, including the vehicle identification number (VIN) and license plate number, if possible.
After contacting the police, reach out to your insurance company. You may want to wait until you have an official police report to file a claim, but you can report the theft without a police report.
Your insurance adjuster will walk you through the claims process for a stolen car and help you access all relevant benefits, including a rental car if you have a loss of use endorsement on your policy (OPCF 20 in Ontario).
“A lot of people would believe that they already have loss of use, as an example, in their policy, and that itself is a separate coverage. So, if their vehicle is stolen, they don't automatically get a rental car unless they add that coverage onto their policy.” —Reza Aziz, RIBO-licensed insurance broker
What happens when you make an insurance claim for a stolen car?
When you file a car insurance claim for a stolen car, your insurance company will begin the process of estimating what you’re owed. In many cases, your insurance company may enforce a mandatory waiting period (e.g., 30 days) before paying the claim to give law enforcement time to locate and recover the vehicle.
If the vehicle is not recovered, a standard auto insurance policy with specified perils, comprehensive, or all perils coverage will pay up to the actual cash value (ACV) of the vehicle at the time of loss, minus your deductible.
If your car is less than three years old, your policy may include a limited waiver of depreciation, also known as OPCF 43 (Removing Depreciation Deduction) in Ontario. This optional endorsement allows owners of new cars to collect an insurance payout for the lowest of the following three amounts in the event of a total loss or theft:
- Your vehicle’s actual purchase price
- The manufacturer’s suggested retail price for your vehicle and equipment
- The cost to replace your stolen vehicle with one of the same make, model, and equipment
Your deductible still applies, but you won’t pay the cost of depreciation.
How does insurance determine the value of a stolen car?
Physical damage coverage (e.g., comprehensive or all perils coverage) only covers the actual cash value of your insured vehicle—that is, what you paid for it minus depreciation.
Because the stolen car isn’t available for a professional inspection and valuation, your insurance company will use the vehicle’s details to request a value estimate from a third-party source. Your estimate may be based on:
- Make, model, and trim information
- Optional equipment and packages
- Vehicle age and mileage
- Any modifications or upgrades made to the vehicle
- The pre-theft condition of the vehicle, which may be set to “average” by default
- Market value data for comparable vehicles in your area
If you disagree with your insurance company’s determination of your stolen car’s value, you can attempt to negotiate with the adjuster or turn to the General Insurance OmbudService of Canada for assistance.
What happens if you still owe money on a stolen car?
If you still owe money on your car loan when your car is stolen, you’re still responsible for paying the remaining loan balance. If you have a loan payment due while your auto theft claim is being processed, you must make the payment to avoid defaulting on your loan.
Once you receive your theft claim payout, you can send the money to your lender to cover loan payments. If you did not have a limited waiver of depreciation on your policy, your payout may be less than the remaining loan balance, leaving you to pay the remainder.
What happens if your stolen car is recovered?
If your stolen car is recovered after you’ve already received a payout from your insurance company, the recovered vehicle legally belongs to the insurance company and you cannot get it back. In many cases, insurance companies sell or auction off stolen vehicles that were recovered after an insurance payout was made.
Does car insurance cover a break-in or attempted theft?
If your car insurance includes coverage for vehicle theft, such as comprehensive or all perils coverage, it likely also covers physical damage to the vehicle caused by an attempted theft. Property damage caused by attempted theft may include broken windows and damage to your car’s electronic systems, or crash damage caused by a reckless joyride after a successful theft.
Will my insurance rates go up if my car is stolen?
Your car insurance rates may go up as the result of an auto theft claim, but the increase is likely to be smaller than the increase you’d see after an at-fault accident claim.
Theft claims are essentially not-at-fault, but they do cost your insurance company money and add to your claims history. If you had claim forgiveness on your policy, you might not see an increase after a theft claim, but you could lose your eligibility for claims-free discounts. If you don’t have claim forgiveness, you’ll likely see an increase in your rate the next time you insure a vehicle, but the increase will generally be small.
How to check whether your car is covered for theft
If you’re not sure whether your auto insurance policy covers theft, find your policy’s declarations page and check for the following types of coverage:
- All perils
- Comprehensive
- Specified perils
If you have all perils coverage, the theft of your vehicle is covered. If you have comprehensive coverage, vehicle theft is covered unless the vehicle was stolen by a household member or employee. If you have specified perils coverage, check to see if theft is included as a covered peril.
If you don’t have any of the coverage listed above, your car is not covered for theft.
Canada’s auto theft crisis
The Insurance Bureau of Canada (IBC) declared auto theft a national crisis in 2024, citing a 200% increase in auto insurance theft losses over the past decade. In 2023, at the peak of the crisis, Ontario alone saw over $1 billion in auto theft claims, a 524% increase from five years prior.
International crime organizations, vulnerable ports, and technological loopholes make Canada’s cars easier to steal, leading the BBC to call Canada “a car theft capital of the world.”
Federal reforms have won moderate reductions in Canadian auto theft rates since 2024, but risk remains high. The table below compares auto theft rates in Ontario cities in 2025.
All Canadians should consider adding coverage for auto theft, such as comprehensive or specified perils coverage, to their personal auto insurance policy. If you live in one of the auto theft hot spots above or drive a commonly stolen car, such as a newer-model SUV or pickup truck, this coverage is especially important.
How to reduce your car’s theft risk
Car theft is rampant in Canada, but simple theft prevention strategies can help you mitigate your risk and may even reduce your car insurance premiums.
The Insurance Bureau of Canada recommends four layers of protection for vehicles:
- Common sense: Park in a secure garage or well-lit area and always lock your vehicle. Don’t leave windows open or the keys in the ignition.
- Visible/audible anti-theft devices: Alarms, steering wheel locks, brake or wheel locks, theft deterrent decals, and VIN etching can all deter potential thieves by making your vehicle look harder to steal or resell.
- Aftermarket vehicle immobilizer: Vehicle immobilizers can protect your car against advanced technological theft techniques. Check with your insurer before installing any aftermarket equipment.
- Vehicle tracking: A vehicle tracking system, such as the TAG system, can help to locate a stolen vehicle.
Most insurance companies in Canada offer premium discounts to policyholders with an approved anti-theft device or tracking system installed in their vehicle. If you do not have one of these devices, you could have a surcharge added to your premium, especially if you drive a vehicle flagged as a high theft risk.
“If you’re insuring a high-theft vehicle, adding Tag—a tracking system—can remove the high-theft surcharge typically added to the policy. Tag is a one-time cost of around $400, but the insurance premiums can go down more than that, and you can reap the benefits year after year.” —Reza Aziz, RIBO-licensed insurance broker
FAQ: Does insurance cover stolen cars?
This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.