Did your client just buy a stolen car?

While it’s eased over the past year, Canada’s auto theft rate remains above historical levels.

In the first half of 2025, Insurance Bureau of Canada data shows 12,887 theft claims were filed by insureds, with losses totalling $361.5 million. Going back 10 years, theft claims had reached 8,567 and claims losses were $120.5 million for the first half of 2015. That’s roughly 50% and 200% respectively below the same period in 2025, but still high.

Demonstrating the issue’s staying power, Canada’s federal government announced late today it will make investments in Canadian‑developed technologies designed to prevent auto theft. “Auto theft remains serious and evolving threat to public safety, and today’s announcement marks another meaningful step in advancing on the National Action Plan to Combat Auto Theft…,” says IBC vice president for Federal Affairs, Liam McGuinty, in a statement.

Helping clients

Beyond the claims problems vehicle theft creates for clients and insurers, it raises the chances that one of your clients may unknowingly buy a stolen vehicle. It’s a genuine risk for used-car buyers, says Steven Harris, a licensed insurance broker who provides commentary for LowestRates.ca.

He notes used car buyers often focus on a vehicle’s price and condition and aren’t always paying attention to the financial consequences of the vehicle turning out to have been stolen. 

Related: How planned registration upgrades can trim Alberta auto theft

“What surprises many buyers is how little protection exists once the sale is complete,” he says. “If a vehicle is later identified as stolen, it can still be seized, even if the buyer had no idea. Recovering the money after that can be extremely difficult.” 

Harris points out insurance is designed to protect vehicle owners when their own cars are stolen. It isn’t intended to protect the purchasers of cars that were stolen from other owners. “If a vehicle has been re-VINned or reported stolen, it becomes an ownership issue rather than a typical insurance claim, and coverage eligibility could be at risk,” he says. 

“That’s why the verification steps matter so much before making the purchase.”  

Years ago, stolen cars offered buyers telltale signs – marks around door keyholes suggesting forced entry, repairs around the steering column or undersides of dashboards where damage from hotwiring was repaired, and damage to the body or interior from joyriders.

Today, car thefts are more high tech. Thieves hijack an owner’s key signal and then clone a new fob. And with the help of expert cosmetic teams (and occasionally public servants) vehicle identification numbers (VINs) are changed to eliminate the trail back to the original theft. All this can make stolen cars appear legitimate.

Related: Auto insurers urge governments to close Re-VINning loopholes

Still, says Harris, not all signs of theft can be erased. So buyers need to go through a few steps:

• Odometer readings should be consistent with the car’s state of repair. A worn out vehicle with low mileage is a red flag. 
• The VIN on an ownership permit should match the number plate that’s visible both under the windshield and on the driver’s door frame. Look closely for scratches, loose plates, or numbers that don’t fully match. 
• Check the name on the vehicle’s registration against a government-issued ID from the seller. Ontario provides a Used Vehicle Information Package that gives buyers an ownership history. A buyer should make sure no loans are registered against the vehicle. 
• Look up the VIN in the Canadian Police Information Centre database. It will show if the car’s been reported stolen. And report providers like CARFAX can also show irregularities, like a different owner than the one the buyer has met with.
• Buyers should beware of below-market prices. Thieves often want to onload the goods and get the cash.
• Buyers going through with a transaction should complete the sale at a financial institution using a bank draft to document the payment trail.