Does Car Insurance Cover Theft in Ontario? What Families Need to Know

Reviewed by Michelle Bragg, VP Personal Lines, RIBO Licensed | Last Reviewed: May 2026

Ontario’s mandatory auto insurance coverage does not automatically include protection for vehicle theft. However, families can add that protection through optional physical damage coverage such as comprehensive coverage, specified perils coverage, or all perils coverage.

In the event that your stolen vehicle is not recovered, your insurer may provide a settlement based on its insured value, subject to policy terms, exclusions, and any applicable deductible.

This article is for general informational purposes only and does not provide legal, insurance, financial, or regulatory advice. Coverage terms, exclusions, deductibles, and claims procedures vary by insurer and policy. Always review your policy wording and speak with your insurance representative regarding your specific situation.

 

Transcript: Does Insurance Cover Stolen Car?

What Is Theft Coverage Under Ontario Car Insurance?

Theft coverage is insurance protection that helps cover the loss of a vehicle when it is stolen. In Ontario, theft is generally covered under comprehensive insurance, specified perils coverage, or all perils coverage rather than the province's mandatory automobile insurance requirements.

Ontario's standard auto insurance policy includes:

• Third-party liability coverage
• Accident benefits coverage
• Direct Compensation – Property Damage (where applicable)
• Uninsured automobile coverage

These mandatory coverages do not provide protection if someone steals your vehicle. Theft protection must be added through optional coverage.

For families looking to understand their options, reviewing your policy regularly and comparing available coverages can help ensure your protection aligns with your vehicle's value and usage. See our helpful auto insurance resources for more information.

Which Types of Coverage Protect Against Vehicle Theft?

Does Comprehensive Insurance Cover a Stolen Car in Canada?

Yes. Comprehensive insurance is the most common form of theft protection.

Comprehensive coverage typically protects against losses resulting from:

• Vehicle theft
• Attempted theft
• Vandalism
• Fire
• Falling objects
• Severe weather events
• Animal-related damage

If your vehicle is stolen and not recovered, comprehensive coverage may provide compensation based on your policy terms and the vehicle's value at the time of loss.

What Is Specified Perils Coverage?

Specified perils coverage protects against risks specifically listed in your policy.

Depending on the insurer and policy wording, theft may be included among the named perils. Coverage only applies to the risks expressly identified in the contract.

Because protection varies between insurers, it is important to review your policy documents carefully.

How Does All Perils Coverage Work?

All-perils coverage combines many aspects of collision and comprehensive coverage into a single package.

It generally offers the broadest protection available for Ontario auto insurance and may include coverage in circumstances where a household member or employee takes the vehicle without permission, subject to policy wording and exclusions.

How Common Is Vehicle Theft in Ontario?

Vehicle theft remains a significant issue across Ontario and Canada.

According to the Insurance Bureau of Canada's 2025 Fight Against Auto Theft report, auto theft has cost Canadians more than $1 billion in recent years, including insurance claims costs, policing expenses, judicial costs, and societal impacts. The Insurance Bureau of Canada identifies organized crime as a major contributor to rising vehicle theft losses.

According to Statistics Canada’s Impacts of rising costs and claims on personal automobile insurance profitability and consumers in Canada report, the number of auto theft claims between 2020 and 2023 increased by 27%, reaching nearly 50,000 per year. This highlights the continued importance of theft prevention and adequate insurance protection.

In Ontario, the Insurance Bureau of Canada’s Ontario’s Top 10 Costliest Cities for Auto Theft in 2025 report states that claims in the province reached $485 million in 2025, with the region with the highest auto theft claims costs of over $114 million being Toronto.

These figures demonstrate why many Ontario families choose comprehensive coverage, particularly for newer vehicles and high-theft models.

What Happens After a Vehicle Is Stolen?

What Should You Do Immediately After Discovering a Theft?

If your vehicle is stolen, taking prompt action can help support the claims process.

Follow these steps:

1. Contact local police and file a report.
2. Record the police report number.
3. Notify your insurance company or broker.
4. Provide details about the vehicle, including:
   • Vehicle Identification Number (VIN)
   • Licence plate number
   • Make and model
   • Last known location
5. Inform your lender or leasing company if applicable.
6. Document any related information requested by your insurer.

How Long Does a Stolen Vehicle Investigation Take?

Each claim is unique. Insurers often allow time for police investigations and vehicle recovery efforts before finalizing a total theft settlement. The timeline varies depending on the circumstances, location, and whether the vehicle is recovered. Your claims representative will explain the specific process applicable to your claim.

How Much Does Insurance Pay for a Stolen Vehicle?

Insurers review several factors when considering payout amounts for stolen vehicles.

What Is a Stolen Vehicle Insurance Payout Based On?

A stolen vehicle insurance payout is commonly based on the vehicle's actual cash value (ACV) immediately before the loss.

Insurers may consider factors such as:

• Age of the vehicle
• Mileage
• Condition
• Market demand
• Comparable vehicle values
• Depreciation

If a deductible applies, it is generally subtracted from the settlement amount.

Can New Vehicles Receive Additional Protection?

Some Ontario drivers purchase endorsements designed to reduce the impact of depreciation during the first few years of ownership.

These endorsements may allow for a settlement based on replacement cost rather than actual cash value if specific eligibility requirements are met.

Coverage availability varies by insurer and policy.

What Happens If the Stolen Vehicle Is Recovered?

If police recover the vehicle before a settlement is finalized, your insurer will typically assess the condition of the vehicle and determine whether repairs are appropriate.

If the vehicle is recovered after a claim settlement has already been paid, ownership rights are generally governed by the claim settlement agreement and applicable policy terms.

Because claim outcomes differ, policyholders should notify their insurer immediately when a stolen vehicle is located.

Does Insurance Cover Theft If the Keys Were Left Inside?

In many cases, theft coverage still applies even if keys were left inside the vehicle.

However, insurers investigate each claim individually and review the circumstances surrounding the theft. Policy conditions, exclusions, and evidence gathered during the investigation can influence the outcome.

Regardless of insurance coverage, removing keys and locking your vehicle remains one of the simplest ways to reduce theft risk.

Does Insurance Cover Damage Caused During a Theft?

Does Insurance Cover Broken Windows From Theft?

Yes, comprehensive coverage generally covers damage caused by attempted theft or vandalism, including broken windows.

Examples may include:

• Smashed side windows
• Damaged locks
• Forced entry damage
• Ignition damage

You may be responsible for any applicable deductible before coverage applies.

What If the Vehicle Is Recovered With Damage?

If a recovered vehicle has sustained covered damage during the theft, comprehensive coverage may help pay for repairs according to your policy terms.

An adjuster may inspect the vehicle to assess the extent of the damage and determine eligible repairs.

Does Car Insurance Cover Personal Items Stolen From a Vehicle?

Generally, no. Auto insurance is designed to insure the vehicle itself rather than personal belongings inside it.

Items commonly left in vehicles include:

• Laptops
• Sunglasses
• Sports equipment
• Mobile devices
• Car seats
• Work tools

Depending on your policy wording, home insurance, condominium insurance, or tenant insurance may provide coverage for certain personal property stolen from a vehicle.

Because limits and exclusions vary, policyholders should review their property insurance coverage carefully.

What Happens If a Financed or Leased Vehicle Is Stolen?

Do Loan Payments Continue After a Theft?

Yes. Financing obligations generally remain in place until the loan is satisfied.

If the vehicle is declared a total loss due to theft, the insurer may issue payment according to the policy's settlement terms.

What If the Insurance Settlement Is Less Than the Loan Balance?

This situation is sometimes called negative equity.

If the outstanding loan exceeds the insurance settlement, the vehicle owner may remain responsible for the difference.

Some drivers purchase gap coverage, which may help address this difference under qualifying circumstances.

Coverage terms vary by provider and agreement.

Will a Car Theft Claim Increase Insurance Premiums?

A single theft claim does not automatically result in a premium increase.

According to the Financial Services Regulatory Authority of Ontario's (FSRA) What determines your auto insurance rate and the Insurance Bureau of Canada's (IBC) How Cars Measure Up articles, insurance companies evaluate many factors when determining premiums, including:

• Claims history
• Vehicle type
• Postal code
• Theft trends
• Coverage selections
• Driving record

Because every insurer uses its own underwriting criteria, the impact of a theft claim can differ from one policyholder to another.

How Can Ontario Families Reduce Vehicle Theft Risk?

What Anti-Theft Measures Are Most Effective?

The Insurance Bureau of Canada’s Auto Theft Prevention article and law enforcement agencies encourage several theft prevention strategies:

• Park in well-lit areas whenever possible.
• Lock doors and close windows.
• Remove keys and key fobs from vehicles.
• Use steering wheel locks or immobilizers.
• Install approved tracking systems.
• Store vehicles inside secured garages when available.
• Keep valuables out of sight.

Are Certain Vehicles More Frequently Targeted?

Yes.

Organized theft rings often target vehicles with strong resale demand domestically or internationally.

Before purchasing a vehicle, families may wish to review theft trends and discuss insurance implications with their broker.

You can also explore available coverage options through our online resources or request a quote if you would like to review your current protection with a licenced BIG broker.

Frequently Asked Questions

Does car insurance cover a stolen car in Ontario?

Yes. Theft is typically covered when your policy includes comprehensive coverage, specified perils coverage that includes theft, or all perils coverage.

How long does a stolen vehicle insurance claim take?

Claim timelines vary based on the investigation, vehicle recovery efforts, and insurer procedures.

Does comprehensive insurance cover theft in Canada?

Yes. Comprehensive insurance commonly includes protection against vehicle theft and theft-related damage.

Does car insurance cover items stolen from inside a vehicle?

Usually not. Personal belongings are often covered under home, tenant, or condominium insurance rather than auto insurance.

What is a stolen vehicle insurance payout based on?

A payout is generally based on the vehicle's actual cash value (ACV) immediately before the theft, subject to policy terms and deductibles.

Can I make a theft claim if my keys were left in the vehicle?

Coverage may still apply, but insurers assess each claim individually according to the circumstances and policy wording.

Key Takeaway

Vehicle theft coverage is not included in Ontario's mandatory auto insurance coverage. Drivers who want protection against theft typically need comprehensive coverage, specified perils coverage that includes theft, or all perils coverage. Understanding your policy before a loss occurs can help ensure you know what coverage is available if your vehicle is stolen.

For additional information about Ontario auto insurance regulations, visit the Financial Services Regulatory Authority of Ontario (FSRA) and the Insurance Bureau of Canada (IBC).

Blog Updated: June 2026