Over the past year, Canada’s escalating car theft crisis has captured international attention and when you look at the numbers, you can see why. With a car stolen every five minutes, there’s been a staggering 138% increase in theft claims over the past decade and a 442% jump in the value of said claims.
Though Ontario and Quebec have been the hardest hit to date, they have also been the ones to invest “significantly in combatting auto theft.” As such, the Insurance Bureau of Canada warns that “due to the opportunistic nature of car thieves, their focus could now shift toward western and Atlantic provinces.”
All this to say, no matter where you live in Canada, if you own a car, now’s the time to review your car insurance policy to ensure it covers car theft. Not sure what to check? In this article, you’ll find out what coverage to look for in your policy documents, as well as learn tips that can help reduce the risk of your car becoming a statistic.
Does Insurance Cover Stolen Cars?
Yes, car insurance does cover stolen cars, but only if you have comprehensive coverage. If you do have it and your claim is approved, your insurance will reimburse you for the value of your stolen vehicle. In the case of an attempted theft that leaves your car damaged (ex. broken windows, forced locks), you may also be compensated for repairs, up to the limits specified in your policy for such damage.
Without comprehensive coverage, on the other hand, you would be fully financially responsible for replacing your vehicle, which could cost you tens of thousands of dollars, especially if you just recently purchased it.
Unlike some types of mandatory coverage (such as third-party liability), comprehensive coverage is optional, meaning you must opt into it and have it explicitly added to your policy to be eligible for reimbursement. If your car is leased or financed though, you will likely be required to add it as your lender or leasing company has a financial interest in the car and needs to protect their investment.
What Happens If Your Car Is Stolen and You Still Owe Money?
If your stolen car still has an outstanding loan but you have a car insurance policy with comprehensive coverage, the insurance company will typically reimburse you for the vehicle’s actual cash value (ACV). However, depending on your policy limits, the payout may not fully cover the remaining loan balance. If so, it will be your responsibility to pay the difference.
If you don’t have comprehensive coverage and your car with money still owing is stolen, you’ll be responsible for repaying the loan out of your own pocket, without any assistance from insurance. As you can imagine, this can become a serious financial setback, as you’ll not only have to cover the remaining loan balance on the stolen car but also bear the cost of replacing it.
This is why comprehensive coverage is arguably so important, particularly if you still owe a substantial amount on your car. If the added cost is a concern, check out these four example quotes with and without comprehensive coverage.
| Quote With Comprehensive Coverage and $500 Deductible | Quote Without Comprehensive Coverage and $500 Deductible | |
| Ontario | $107 | $94 |
| Québec | $36 | $29 |
As you can see, the difference in premium can be manageable. Want to see how much the price difference would be for you? You can find out in just a few minutes.
How To Prevent Your Car From Being Stolen: Checklist
Regardless of whether you choose to get a car insurance policy that includes comprehensive coverage or not, there are several things every driver can and should at least consider doing to reduce the risk of their car being stolen. In fact, here’s a simple checklist that you can follow to help prevent your car from being stolen.
- Lock your doors and windows
- Park in well-lit, high-traffic areas whenever possible
- Install an anti-theft device, such as a steering wheel lock, car alarm, or GPS tracking system
- Always remove or hide valuables like electronics, bags, or personal items when leaving your car
- Never leave your keys in the ignition, even for a moment
- Consider adding a security camera or dashcam for extra protection and evidence in case of theft
- If you park in your driveway, enhance security with motion-activated lights or a sturdy security gate
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