Auto theft claims in Canada have fallen sharply over the past two years, a shift that could help ease insurance pressure and stabilize repair volumes for collision repair facilities — but industry leaders caution that the underlying crisis is far from resolved.
According to the Insurance Bureau of Canada (IBC), auto theft claims declined by 27% following the federal government’s National Summit on Combating Auto Theft, held in Ottawa two years ago. The summit was convened after a surge in vehicle thefts drove record insurance losses, higher total loss frequency and increased premiums, all of which have direct consequences for collision repair shop owners and managers.
“Since the summit, considerable progress has been made in the fight against auto theft,” said Liam McGuinty, vice-president of federal affairs at IBC. “Auto theft rates have dropped, thanks in large part to concerted efforts by governments and law enforcement to ensure stolen vehicles are seized before they leave Canada’s ports.”
The Ottawa summit brought together all orders of government, law enforcement agencies, insurers, automakers and border and port officials. It resulted in the National Action Plan on Combating Auto Theft, which focuses on disrupting, dismantling and prosecuting the organized crime networks behind large-scale vehicle theft, particularly those exploiting export channels.
IBC says the federal government has delivered on several elements of the action plan, including investments in the Canada Border Services Agency (CBSA), expanded access to transporter and warehouse facilities at ports, and proposed amendments to the Criminal Code. Those measures have helped intercept stolen vehicles before they exit the country.
However, insurers stress that progress must be sustained. Auto theft losses have increased by 371% over the past decade, placing ongoing upward pressure on insurance premiums while contributing to public safety concerns and consumer anxiety.
“We have seen a meaningful drop in auto theft in Canada over the past two years, but the auto theft crisis continues to persist,” McGuinty added. “The federal government must keep fighting auto theft.”
IBC is also calling for stronger vehicle security standards, noting that increasingly sophisticated electronic theft methods have made modern vehicles easier to steal. Proposed amendments to the Canada Motor Vehicle Safety Standards would replace outdated immobilizer requirements and introduce protections against “electronic attack tools.”
In addition, insurers are urging Ottawa to strengthen export controls, including a requirement that vehicles and documentation be presented at ports 72 hours before shipment — a move they say would further disrupt theft supply chains.
For collision repair operators, IBC says reducing auto theft is critical to restoring predictability across the claims, repair and insurance ecosystem.
