Stolen Car in Canada: Does Auto Insurance Cover Vehicle Theft?

Car Theft in Canada: Does Auto Insurance Cover Vehicle Theft?

Car theft is no longer a rare event. According to Statistics Canada, reported vehicle thefts increased by 27% between 2020 and 2023, reaching nearly 50,000 cases per year. In this context, it’s more important than ever to understand whether your auto insurance policy covers vehicle theft.

This guide explains in detail which types of insurance cover theft, the steps to follow if your vehicle is stolen, and how to protect yourself while potentially reducing your premiums.

Does Auto Insurance Cover Vehicle Theft in Canada?

If your vehicle is stolen in Canada, your standard auto insurance policy does not automatically cover the loss. To be protected, you must have optional coverage such as comprehensive insurance or specified perils.

At OVC Assurance, we help you find the right theft protection by comparing offers from more than 20 insurers in a single call. You save time while ensuring your vehicle is properly covered. Our team researches on your behalf to recommend coverage that truly meets your needs.

Does Liability Insurance Cover Vehicle Theft or Stolen Items?

Basic liability insurance—mandatory in all provinces—only covers damage you cause to others. It does not cover theft.

If your vehicle is stolen and you only carry liability insurance, you will not be compensated for the vehicle or personal items inside, such as a laptop, gym bag, or phone.

Here’s what basic liability insurance generally covers in Canada:

• Bodily injury caused to others when you are at fault

• Damage to another person’s vehicle or property

• Legal fees if you are sued after an at-fault accident

• Certain accident benefits, such as medical care or income replacement (varies by province)

Which Types of Auto Insurance Cover Car Theft in Canada?

Theft protection is offered through optional coverages:

1. Comprehensive Coverage (All Perils Except Collision or Upset)

Covers non-collision-related damage such as theft, vandalism, fire, flooding, and falling objects.

If your car is stolen, the insurer generally pays the actual cash value (ACV) of the vehicle minus the deductible. ACV reflects depreciation, meaning the amount received may be less than the original purchase price.

2. Specified Perils Coverage

This provides limited protection for risks explicitly named in your policy, such as theft, fire, or certain natural events. If you choose this coverage, make sure vehicle theft is listed. It is less expensive than comprehensive insurance but offers narrower protection.

3. Collision or Upset + Comprehensive (All Perils)

This is the most complete option. It provides coverage in situations often excluded by other policies, such as theft committed by a household member. It is particularly useful for shared vehicles or roommate situations and covers a wider range of unexpected events.

Not sure which option is right for you? Our team can help you compare protection from more than 20 insurers and choose coverage that meets your needs—including theft protection.

Does Your Insurance Cover Vehicle Theft?

What to Do if Your Car Is Stolen in Canada

Discovering your vehicle has been stolen can be stressful, but staying calm and taking the right steps can make a real difference in your claim process and the chances of recovering the vehicle.

Step 1: Report the Theft to the Police Immediately

Provide details such as the VIN, license plate, make, model, color, and any distinguishing features.
If your vehicle has a tracking device like TAG, mention it to the authorities.
You will receive a police report number, which your insurer will need to open your claim.

Step 2: Contact Your Insurer

Have your police report number, list of stolen personal items, and spare key information on hand. This helps expedite the claim.

Step 3: Claim Investigation and Documentation

Your insurer may wait 48–72 hours to see if the vehicle is recovered. They may request:

• Photos of the vehicle

• Proof of security or anti-theft devices

• Proof of ownership

• A list of stolen personal items

If the vehicle is found damaged, repairs may be covered under your policy.

Step 4: Settlement and Waiting Period

If the vehicle is not recovered, the insurer determines its actual cash value based on depreciation. Your payout will depend on your policy limits and deductible.

Step 5: Reduce Future Theft Risks

Review your auto insurance and consider upgrading to comprehensive coverage.
Installing tracking or security systems can reduce risk and potentially lower your premiums.
Discuss available anti-theft or low-usage discounts with your broker.

How to Shop for Auto Insurance in Quebec

How to Protect Yourself Against Car Theft and Reduce Your Premiums

Protecting your vehicle isn’t just smart—it can also reduce your insurance costs.

Install Anti-Theft Devices

Many Canadian insurers offer discounts for approved anti-theft systems, with even greater savings for advanced tracking devices like TAG.

Choose a Low-Risk Vehicle

When shopping for a new car, avoid high-theft models such as:

• Toyota Highlander

• Dodge Ram 1500

• Lexus RX

• Honda CR-V

• Toyota RAV4

• Honda Civic

• Jeep Wrangler

• Land Rover Range Rover

• Chevrolet/GMC Suburban, Yukon, Tahoe

• Chevrolet/GMC Silverado/Sierra 1500

Review and Update Your Policy Regularly

Life changes—and your insurance should too. Review your auto and home insurance annually, especially after changing vehicles, renovating, or moving.

Speak With a Licensed Insurance Broker in Quebec

OVC Assurance: A Smarter Way to Get Insured

OVC Assurance simplifies your life by comparing offers from more than 20 reputable insurers in a single call. Our independent brokers believe that protecting your car, home, or business should be simple, fast, and stress-free.

With our expertise and access to a wide range of competitive options, we help you find the right coverage at the right price—saving you time and offering complete peace of mind.

Find the right protection today.