How to protect yourself from carjackings and vehicle theft

Originally written: October 18, 2022 by John Loeppky

Auto theft has surged across Canada in recent years, but data suggests the country may be turning a corner.

According to the Insurance Bureau of Canada (IBC), auto theft claims dropped by 24% between 2024 and 2025, reflecting progress following coordinated action by governments, law enforcement, and the insurance industry

However, this decline doesn’t mean the problem has been solved. Canadians are still paying the price—literally. Équité Association reports that auto theft continues to cost about $900 million annually in insurance claims. Much of the activity is tied to organized crime networks.

Despite recent progress, IBC said that auto theft rates remain significantly higher than they were a decade ago. Elevated theft rates and claims continue to put pressure on insurance premiums.

Here’s what Canadian drivers need to know about auto theft and how you can protect yourself from carjackings and vehicle theft.

Ways to protect yourself from car theft

While no prevention method is foolproof, there are practical steps you can take to reduce your risk of vehicle theft or carjacking. Most strategies come down to making your vehicle less attractive and more difficult target.

1. Make your vehicle harder to steal

• Install an immobilizer or anti-theft system if your vehicle doesn’t already have one
• Use a steering wheel lock or other visible deterrent
• Keep your vehicle software up-to-date, if applicable

The harder your car is to access or start, the more likely a thief will move on to an easier target.

2. Protect your key fob

• Store your keys in a Faraday pouch or signal-blocking case
• Avoid leaving keys near doors or windows at home

Many thefts now involve relay attacks that intercept your key fob signal, allowing thieves to unlock and start your car remotely.

3. Use a tracking device

• Install a GPS tracker or recovery system
• Choose a device that allows you (and potentially police) to locate your vehicle in real time

Tracking systems can’t prevent theft, but they can increase the chances of recovery.

4. Practice smart parking habits

• Park in well-lit, high-traffic areas whenever possible
• Use a garage or secure parking facility if available
• At home, consider motion lights or security cameras

Visibility and surveillance can deter thieves looking for easy opportunities.

5. Lock up and double check

• Always lock your doors and close windows, even for short stops
• Never leave your vehicle running unattended
• Avoid leaving spare keys inside the car

Many thefts still happen simply because a vehicle was left unsecured.

6. Stay alert to prevent carjacking

• Be aware of your surroundings when entering or exiting your vehicle
• Keep doors locked while driving
• If confronted, prioritize your safety over your vehicle

Carjackings are less common than other types of theft, but they tend to happen quickly and unexpectedly.

Read next: Installing an anti-theft device could save you money on insurance

Why vehicle theft is still a major issue

Vehicle theft remains a major issue in Canada because it is driven by organized crime and increasingly sophisticated methods. 

According to Équité Association, criminal groups are constantly evolving their tactics. They use advanced methods such as vehicle re-identification (re-VINing), dismantling vehicles for parts, and exporting stolen cars overseas. In some cases, they also commit vehicle finance fraud, which has risen sharply in recent years.

These crimes are rarely isolated. They are often part of larger operations. In many cases, they help fund other illegal activities, including drug and gun trafficking.  

At the same time, IBC warns that many vehicles on the road today are vulnerable to electronic theft techniques. These include relay attacks that capture and mimic key fob signals, as well as tools that plug into a vehicle’s onboard diagnostics port to reprogram keys.  

In response to industry groups' call for updated immobilizer standards and stricter vehicle design requirements with systems that better resist electronic tampering and unauthorized key programming, the Government of Canada responded with a National Action Plan in 2024. 

The National Action Plan on Combatting Auto Theft outlines actions focused on disrupting, dismantling, and prosecuting the organized crime groups behind auto theft.

Public Safety Canada reports that the Canada Border Services Agency (CBSA) continues to examine containers destined to export. CBSA intercepted 2,277 stolen vehicles in 2024. As of May 31, 2025, the agency intercepted an additional 666 stolen vehicles in 2025.

How vehicle theft impacts your car insurance

Vehicle theft can increase your car insurance premiums—even if your own car has never been stolen. 

As theft claims rise, insurers face higher costs and adjust pricing to reflect increased risk across the market. Over time, these losses are built into premiums for drivers.

According to IBC, theft-related losses have risen sharply over the past decade. This increase has contributed to ongoing upward pressure on auto insurance premiums across Canada.  

Even though theft rates have started to decline more recently, they remain significantly higher than historical levels. That means the financial impact is still being felt by both insurers and drivers.  

In practical terms, this means:

• You may pay more if your vehicle is considered high-risk. Certain makes and models are more frequently targeted by thieves, which can lead to higher premiums.
• Your premiums may rise if theft is common in your area. Insurers factor in regional crime data, meaning drivers in high-theft neighbourhoods often face higher costs.
• Even if you’ve never made a claim, you can still be affected. Insurance pricing reflects broader trends across the market—not just individual driving history.

In short, auto theft is a shared cost. As long as theft is widespread, its financial impact will continue to show up in insurance premiums for Canadian drivers.

Read more: The 10 most stolen vehicles in Canada for 2025

Will my auto insurance policy cover vehicle theft?

In Canada, vehicle theft is typically covered only if you have comprehensive car insurance, but is not included by default. This optional coverage protects against risks like theft, vandalism, fire, and weather damage. It’s separate from collision coverage and the mandatory third-party liability insurance required by law.

In Ontario, auto insurance reform that takes effect July 1, 2026, will give drivers more flexibility to customize their policies through an 'à la carte' system, where some coverages that were previously standard and mandatory can be reduced or removed. 

Read more: Will July 1 auto insurance reforms in Ontario impact you?

This shift puts more responsibility on drivers to choose the right level of protection. In some cases, particularly for high-risk vehicles or areas with elevated theft rates, insurers may require approved anti-theft devices or apply stricter conditions to qualify for coverage or avoid higher premiums. These measures are meant to reduce theft-related losses and risk. 

If you already have coverage, it’s important to review your policy details carefully. Not all comprehensive policies are the same. Deductibles, limits, and conditions can vary depending on your insurer.

What to do if your car is stolen

If your vehicle is stolen, act quickly:

• Report the theft to police immediately: Your insurer will require a police report to process your claim.
• Contact your insurance provider: Start your claim as soon as possible—many insurers offer online and phone options.
• Provide supporting details: This may include your policy number, vehicle information, and any known details about the theft.

From there on, your insurer will guide you through the claims process.

You’re only protected against vehicle theft if you have the right coverage in place. As Ontario’s system shifts toward customizable policies, it’s more important than ever to understand your coverage and make informed choices.

Learn more: Here are the changes coming to Ontario auto insurance in 2026