Deft at Reducing Theft: Auto Theft Declines But Still Impacts Collision Repair Industry

Toronto, Ontario – Canada saw an 18.6 percent drop in auto thefts in 2024, marking a sharp reversal after years of escalating incidents, according to a new report from Équité Association. The decline follows coordinated efforts from law enforcement, government agencies, and the insurance industry to curb organized crime-driven vehicle theft.

While this downward trend is encouraging, the problem is far from solved. Over 57,000 private passenger vehicles were stolen last year, and more than 40 percent were never recovered—many likely shipped overseas or dismantled for parts. For the collision repair industry, auto theft continues to present major challenges, including parts shortages, insurer scrutiny on theft-related claims, and repair complexities when stolen vehicles are recovered.

A Collision Repair Perspective

For repair professionals, auto theft creates a ripple effect across the industry:

• Theft-Recovered Vehicles Require Complex Repairs – When stolen vehicles are recovered, they often suffer structural damage, electrical tampering, or vandalism, making repair procedures more intricate.
• Parts Shortages & Supply Chain Strain – Stolen vehicle replacements increase demand for specific parts, exacerbating ongoing supply chain issues.
• Insurer Scrutiny on Claims – With theft-related insurance claims on the rise, repair estimates are undergoing greater scrutiny, leading to longer approvals and potential disputes over repair costs.
• Increased Risk of Fraudulent Repairs – Some stolen vehicles reappear with altered VINs or unauthorized modifications, making proper documentation and OEM procedures more critical than ever.

Équité Association, a not-for-profit organization established by Canadian insurers, has been leading the charge against organized auto theft and insurance fraud. Through its Intelligence-Driven Theft Disruption model, Équité works with law enforcement agencies across Canada and internationally to disrupt vehicle trafficking networks.

In 2024, the company's efforts contributed to significant theft rate declines across major provinces:

• Quebec: ↓ 32.4 percent
• Ontario: ↓ 17.4 percent
• Western Canada: ↓ 12.7 percent

Despite these gains, the organization warns that theft remains a multi-billion-dollar issue, fueling organized crime and insurance fraud. The company further advocates for stronger border controls, manufacturer-led security enhancements, and increased industry collaboration to keep theft rates down in the coming years.

What’s Next?

As Canada’s collision repair sector continues to deal with the aftermath of stolen vehicle recoveries, shop owners should stay informed on theft trends, ensure repairs follow OEM guidelines, and work closely with insurers to streamline claims involving theft-related damage.