Four Ideas That Can Drive Continued Progress Against Auto Theft

Significant progress made in last two years, ongoing work needed to continue decreasing auto theft —

Roughly two years ago, on February 8, 2024, the federal government hosted the National Summit on Combating Auto Theft in response to a sharp rise in auto theft across the country. Since then, and as a result of the efforts of governments, law enforcement and other stakeholders, the number of auto theft claims has declined by 27% over the last two years.^[1]

“Since the summit, considerable progress has been made in the fight against auto theft,” said Liam McGuinty, Vice-President, Federal Affairs, Insurance Bureau of Canada (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 federal government’s National Summit on Combatting Auto Theft brought together all orders of government, law enforcement, border and port officials, insurers and auto manufacturers to find solutions to the crisis. It resulted in the National Action Plan on Combatting Auto Theft (Action Plan), which outlines a series of actions focused on disrupting, dismantling and prosecuting the organized crime groups behind auto theft.

IBC notes that the federal government has delivered on many elements of the Action Plan, including making investments in the Canada Border Services Agency’s (CBSA’s) capacity and technology, and rule changes that grant the CBSA greater access to transporter and warehouse facilities at ports. It has also proposed amendments to the Criminal Code.

Despite these efforts, auto theft rates remain significantly higher than they were a decade ago, and auto insurance losses have increased by 371% over the same period. These trends have placed upward pressure on drivers’ insurance premiums, undermined public safety and caused widespread concern and trauma for Canadians.

“We have seen a meaningful drop in auto theft in Canada over the past two years, but the auto theft crisis continues to persist,” added McGuinty. “The federal government must keep fighting auto theft.”

1. Making Cars Harder to Steal

The property and casualty insurance industry has long advocated for stronger regulatory requirements to prevent vehicle theft. One cause of the decade-long increase in auto theft is that vehicles have become too easy to steal. Canada needs to modernize its anti-theft standards to make vehicles more secure and discourage car thieves.

Last year, the federal government announced proposed amendments to the Canada Motor Vehicle Safety Standards that would replace outdated vehicle immobilization standards with ones that align with the latest international requirements for theft protection. The proposed standards include a new category, “electronic attack tools,” that stops the increasingly sophisticated methods that auto thieves have been using over the past decade.

These proposed changes represent an important and welcome step forward in strengthening vehicle security and protecting Canadians by ensuring that all vehicles sold in Canada, including imported vehicles, are designed to withstand modern electronic theft techniques. IBC and its members are urging the federal government to move forward with these amendments as soon as possible.

2. Preventing Stolen Vehicles from Leaving Canada

The federal government has made meaningful progress and investments in preventing stolen vehicles from exiting the country by increasing border security. The introduction of the Strong Borders Act includes a commitment to amend the Customs Act to strengthen the CBSA’s ability to inspect exports. While this approach is critical, it would be stronger if it also adopted a 72-hour rule that requires vehicle exporters to present their documentation and vehicles at the port 72 hours prior to the planned export. Currently, exporters can provide their documentation weeks after their vehicles have been shipped overseas, limiting the ability to intercept any vehicles that are stolen.

3. Dismantling Auto Theft Supply Chains

The government announced its intent to amend the Customs Act to grant the CBSA new authority to inspect goods destined for export. However, the government has not addressed unscrupulous actors such as fly-by-night freight forwarders. A lack of oversight and regulation within the auto theft transportation export network allows bad actors to easily facilitate the illegal shipment of stolen vehicles out of the country. IBC is urging the federal government to close this regulatory gap.

5. Improving Data Sharing to Break Up International Crime Rings

There has been some progress in information sharing between law enforcement. For example, the RCMP is now uploading its Canadian Police Information Centre information to the International Criminal Police Organization (Interpol), but there is much more to do. For instance, modernizing the Interprovincial Record Exchange system remains critical to improving data sharing with provincial registries and closing vehicle registration loopholes that enable auto theft.

Notes

1. IBC with data from the General Insurance Statistical Agency (GISA) comparing auto theft claims data for the first half of 2025 to the first half of 2024.

About Insurance Bureau of Canada

Established in 1964, Insurance Bureau of Canada (IBC) is the national industry association representing Canada’s private home, auto and business insurers. Its member companies make up the vast majority of Canada’s highly competitive property and casualty (P&C) insurance market. As the leading advocate for Canada’s private P&C insurers, IBC collaborates with governments, regulators and stakeholders to support a competitive environment for the P&C insurance industry to continue to help protect Canadians from the risks of today and tomorrow. IBC believes that Canadians value and deserve a responsive and resilient private P&C insurance industry that provides insurance solutions to both individuals and businesses. For more information, visit www.ibc.ca.

Source: Insurance Bureau of Canada (IBC)