In Ontario, car theft is covered only if you carry optional physical-damage coverage: Comprehensive, Specified Perils or All Perils. Collision and the mandatory coverages do not pay for a stolen car. If your car isn’t recovered, the standard policy pays its actual cash value at the time of the theft, less your deductible, and contributes up to $900 toward a rental, taxi or transit costs once 72 hours have passed since you reported the theft.

Auto theft in Ontario is falling, but not fast enough to ignore. Équité Association, which tracks police-reported thefts for the insurance industry, counted 8,796 private passenger vehicles stolen in Ontario in the first half of 2026. That is down 8.4% from 9,601 a year earlier. The share of stolen vehicles recovered fell too, from 48.6% to 44.8%. In plain terms, if your car is stolen in Ontario, the odds are now better than even that you won’t get it back. That makes the coverage on your policy more important than ever.

This guide explains how car theft insurance in Ontario works: which coverage pays, what it pays, the gaps most drivers don’t notice until they make a claim, and how theft affects what everyone pays. If your car has just been stolen, start with our step-by-step guide on how to report a stolen car and start your claim, then come back here.

Does car insurance cover theft in Ontario?

Only the optional coverages do. The coverages every Ontario policy must include, such as third-party liability, statutory accident benefits and uninsured automobile coverage, don’t pay you for your own stolen car. Neither does direct compensation – property damage (DC-PD), which deals with collision damage caused by another driver.

Theft falls under Section 7 of the standard Ontario Automobile Policy (OAP 1), the “Loss or Damage” coverages. You choose one of these options:

If your policy shows only liability and the mandatory coverages, a stolen car is an uninsured loss. Drivers sometimes drop physical-damage coverage on an older car to save money, so check the “Loss or Damage” lines on your Certificate of Automobile Insurance. If you’re unsure which coverages make sense for your vehicle, our guide to the auto coverage you really need in Ontario walks through the options.

Which car thefts are not covered by Comprehensive?

This is the exclusion most drivers have never read. Under section 7.2.3 of the OAP 1, Comprehensive and Specified Perils won’t pay when a person who lives in your household steals the car. They also won’t pay when your employee steals it, if that employee’s duties include driving, maintaining or repairing the vehicle. The policy says this exclusion applies at any time, not just during working hours.

All Perils is the only standard option that covers those situations. That matters for:

• households where relatives or others living with you have access to the keys;
• small-business owners whose employees drive, maintain or repair the vehicle.

How much will insurance pay for a stolen car in Ontario?

If your car isn’t recovered, the payout is based on its actual cash value when it was stolen. That is not what you paid for it, and not what a new replacement costs. The standard policy wording values the loss “after taking into account depreciation,” then subtracts your deductible.

For example, if a stolen car’s actual cash value is $10,000 and your Comprehensive deductible is $500, the most the insurer pays is $9,500. The deductible applies separately to each claim and to each insured vehicle.

Two practical points follow:

1. Know your vehicle’s market value. Keep records of upgrades, maintenance and mileage. They support your valuation if you disagree with the insurer’s figure.
2. Watch for a loan gap. If you owe more on a loan or lease than the car’s actual cash value, the payout goes to the lender first and you may still owe the difference. That gap is what gap insurance on a leased or financed car is designed to cover.

Will insurance pay for a rental car if my car is stolen?

Yes, but with limits that surprise people. Under section 7.4.4 of the OAP 1, if you have All Perils, Comprehensive or Specified Perils, the insurer pays reasonable costs to rent a similar substitute vehicle. If you don’t rent, it pays reasonable taxi or public transit costs instead. Two limits apply:

• A 72-hour wait. Costs aren’t covered until 72 hours after the theft has been reported to the insurer or to the police.
• A $900 cap. The most the policy pays for these expenses is $900.

If a theft claim takes more than a few days to settle, $900 may not last the whole claim. The fix is the OPCF 20 – Loss of Use endorsement (often called transportation replacement), which covers the cost of a rental while your vehicle is being repaired or replaced after a loss caused by a peril you’re insured for. Ask your broker what daily and total limits your OPCF 20 carries.

Is there a way to avoid depreciation on a stolen new car?

For newer vehicles, yes. The OPCF 43 – Removing Depreciation Deduction endorsement (often called a waiver of depreciation) removes the insurer’s right to deduct depreciation when settling a claim for a covered peril. On a recently purchased car, that can make the difference between a payout based on the purchase price and one based on a depreciated value. Insurers set their own eligibility rules for this endorsement, such as vehicle age. If you bought a car in the last year or two, ask whether it is on your policy.

Does auto theft raise car insurance rates in Ontario?

Theft costs feed into what all drivers pay, and they remain high. Insurance Bureau of Canada (IBC) reports that auto theft claims in Ontario cost $485 million in 2025, down from $723 million in 2024. Even after that drop, IBC says the number of theft-related claims is up 97% since 2017 and losses are up 330%. Toronto, Brampton and Mississauga had the highest theft claims costs in Ontario in 2025.

IBC notes that cars less likely to be stolen, damaged or in a collision, and cheaper to repair, generally cost less to insure. The reverse is also true. A model that thieves target can cost more to insure, and some insurers may ask about anti-theft equipment on certain vehicles. These requirements and any discounts vary by insurer.

For context, the Financial Services Regulatory Authority of Ontario (FSRA) reports an average private passenger auto premium of $2,218 as of June 2026, and $2,868 in the Greater Toronto Area. If your renewal went up and you’re not sure why, our guide to why your car insurance premium changed at renewal explains the moving parts.

How can I reduce the risk of my car being stolen?

Équité Association’s 2026 survey found that 82% of thefts happened at or next to the victim’s home. That makes the driveway the place to focus. IBC and Équité recommend a layered approach:

1. Basics. Lock the doors, close the windows and never leave the keys in the vehicle. Don’t leave it running unattended, even on cold mornings. Park in a well-lit area or a locked garage.
2. Visible deterrents. Use a steering wheel or brake pedal lock, an OBD2 port lock, an audible alarm, or window etching.
3. Protect the key fob. Turn off the fob or keep it in an RFID-blocking (Faraday) pouch when you’re not using it, even at home.
4. An immobilizer. A quality aftermarket immobilizer can protect against relay, reprogramming and CAN bus attacks. IBC advises speaking with your insurer before installing aftermarket technology.
5. Tracking. Tracking systems that use several hidden devices can help locate a stolen vehicle. Check with your dealership first that the system won’t affect your warranty.

What to check on your car theft insurance this week

Before winter, pull out your Certificate of Automobile Insurance and confirm:

• You have Comprehensive or All Perils, not just Collision or liability only.
• Your Comprehensive deductible is an amount you could pay tomorrow.
• You know whether OPCF 20 (loss of use) is on the policy, and its limits.
• A newer vehicle has OPCF 43 (removing depreciation deduction), if it’s eligible.
• If others in your household or business use the car, you’ve considered All Perils.
• If the car is financed or leased, you know whether a gap in the payout would leave you owing money.

An AAXEL broker can review these points against the insurers we work with and quote the endorsements side by side. If a claim is already under way, our guide on how to file a car insurance claim in Ontario covers the process. Book a policy review.

4. FAQ (publish; mark up with FAQPage schema)

Does car insurance cover theft in Ontario?

Only if you have optional physical-damage coverage: Comprehensive, Specified Perils or All Perils. Collision coverage and the mandatory coverages, such as liability and accident benefits, don’t pay for your own stolen car. Check the “Loss or Damage” section of your Certificate of Automobile Insurance.

Does Comprehensive insurance cover a stolen car?

Yes. Comprehensive includes theft and attempted theft. The exception is theft by someone who lives in your household, or by your employee whose duties include driving, maintaining or repairing the car. Only All Perils covers those thefts.

How much will my insurer pay if my car is stolen and not recovered?

The standard Ontario policy pays the vehicle’s actual cash value at the time of the theft, after depreciation, less your deductible. For a car worth $10,000 with a $500 deductible, that means up to $9,500. The OPCF 43 endorsement can remove the depreciation deduction on eligible newer vehicles.

Will my insurance pay for a rental car if my car is stolen?

If you have Comprehensive, Specified Perils or All Perils, the standard policy pays reasonable rental, taxi or public transit costs. Coverage starts 72 hours after you report the theft to your insurer or the police, and the total is capped at $900.

What is OPCF 20 and do I need it?

OPCF 20 is an optional endorsement that covers a rental vehicle while your car is being repaired or replaced after an insured loss. It is useful if a theft claim could leave you without a car for longer than the standard $900 allowance covers. Ask your broker about its daily and total limits.

What is OPCF 43?

OPCF 43, Removing Depreciation Deduction, stops the insurer from deducting depreciation when it settles a claim for a covered peril. It is mainly relevant for newer vehicles, and each insurer sets its own eligibility rules.

Is my car covered if a family member steals it?

Not under Comprehensive or Specified Perils. The standard Ontario policy excludes theft by a person who lives in your household under those options. All Perils is the standard coverage that includes it.

Does auto theft affect car insurance rates in Ontario?

Theft claims are part of the claims costs that rates are built on. IBC reports Ontario auto theft claims cost $485 million in 2025, down from $723 million in 2024 but still far above 2017 levels. Vehicles that are less likely to be stolen generally cost less to insure.

How many cars are stolen in Ontario?

Équité Association counted 8,796 private passenger vehicles stolen in Ontario in the first half of 2026, down 8.4% from the same period in 2025. Only 44.8% of those vehicles were recovered in the same period.

How can I protect my car from theft at home?

Keep the key fob in an RFID-blocking (Faraday) pouch or switched off, and never leave the car running unattended. Add a visible deterrent such as a steering wheel lock, and consider an immobilizer or tracking system after checking with your insurer and dealer. Équité’s 2026 survey found 82% of thefts happened at or next to the victim’s home.

Sources

All sources were opened and read on October 26, 2026.

• FSRA – Ontario Automobile Policy (OAP 1) Owner’s Policy, OAP1-EN.5 (07-2026), approved for use on or after July 1, 2026 (form page) — coverage options and theft (s. 7.1.2), certain thefts not covered (s. 7.2.3), deductible (s. 7.3), loss of use due to theft, 72 hours and $900 (s. 7.4.4), seven-day written notice (s. 7.5)
• Standard OAP 1 wording, September 1, 2010 edition (insurer-hosted copy) — actual cash value “at the time it was damaged or stolen” and depreciation wording (s. 7.7); FSRA’s text extract of the 2026 form did not include s. 7.7, so this wording should be confirmed against the 2026 PDF
• FSRA – Understanding Automobile Insurance (archived FSCO consumer guide) — definitions of Specified Perils, Comprehensive, Collision, All Perils; OPCF 20 and OPCF 43 descriptions
• FSRA – Your average premium — $2,218 Ontario average and $2,868 GTA average, as of June 2026
• Équité Association – First Half of 2026 Auto Theft Trend Report (press release, Aug 11, 2026) and full report PDF — Ontario thefts 9,601 → 8,796 (−8.4%); recovery 48.6% → 44.8%; 82% of thefts at or near home (2026 survey)
• IBC – Ontario’s Top 10 Costliest Cities for Auto Theft in 2025 (May 13, 2026) — $485M in 2025 vs $723M in 2024; claims up 97% and losses up 330% since 2017; Toronto, Brampton, Mississauga top three
• IBC – Auto Theft Prevention — layered prevention tips; vehicles less likely to be stolen generally cost less to insure; speak to insurer before aftermarket tech
• IBC – Types of Auto Coverage — cross-check that Collision excludes theft and All Perils covers household theft

Disclaimer

This article is general information about Ontario auto insurance and car theft insurance Ontario as of October 2026 and is not legal or insurance advice. Coverage depends on your policy wording, endorsements and insurer. Read your policy and talk to a licensed broker about your situation.