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10 minute read Published on Jan 9, 2026 by BrokerLink Communications
Having your car stolen is a nightmare, but what happens if it’s found? While you might be relieved to know where your car has been located, you may be wondering how this impacts your car insurance claim, as well as what state your car will be in when it’s finally returned to you. Car theft is on the rise in Canada. In 2023 alone, insurance companies across the country paid out approximately $1.5 billion in auto theft claims.
If you ever find yourself in the position where your car is stolen and then recovered, knowing how to navigate the claims process is essential. This guide will walk you through what steps to take, how to deal with law enforcement, and what paperwork you need to complete if your vehicle is recovered.
The first moments after discovering your car's been stolen are stressful, but they're also the most important. With auto theft up by 5% in Canada in 2023, to ensure you have the best chances of having your vehicle recovered, here's what you need to do:
Call the police: Report your stolen car immediately to the local police station. Provide law enforcement with information like the make, model, trim, year, colour, licence plate, vehicle identification number, list of personal belongings stolen, and last known location.
Notify your insurance provider: Contact your insurance company and inform them that your car has been stolen. You'll want to open an insurance claim as soon as possible. Remember to provide them with a police report and other documents they may request.
Inform your dealership or loan provider: If you're leasing your vehicle or have a car loan, you'll want to inform them of your vehicle theft and keep them in the loop moving forward.
Access GPS tracking information: If your car has a GPS tracker on it, provide this information to police to help them with their investigation process. You should also provide a copy of this evidence to your insurance provider.
Check nearby areas: Sometimes, stolen vehicles are abandoned nearby. A quick scan of your neighbourhood might help recover your stolen car.
Look online: Don't forget to check online marketplaces like Craigslist and Facebook Marketplace. Sometimes, thieves will list your stolen vehicle to make quick cash.
Pro tip: Don't forget to keep a record of all communication during the process, such as phone calls, emails, and letters. This will move your insurance claim along and ensure you're fairly compensated for the replacement cost of your stolen car.
If your stolen vehicle has been recovered, a common misconception motorists have is that their insurance claims process stops there, when in fact, it doesn't. Take a closer look at what happens when your car is stolen then found:
If your stolen car is recovered, local police will notify you. They will then provide details about the current location of the vehicle and its condition. Specifically, they'll mention if they believe that the car was involved in criminal activity. If this is the case, the vehicle will likely be held as evidence for some time until the police complete their investigation.
Once your vehicle has been cleared for release, meaning the police have wrapped up their investigation, the car will be returned to you. In some cases, you might be able to drive the car right out of the police station.
However, in other cases, the car might be damaged, which means you might need to have it towed to your home, an auto body shop, a car dealership, or another location of your choosing so it can be assessed for damage.
Now you can go ahead and contact your insurance provider. If your car is damaged, your insurance company will have your adjuster inspect the damage to determine the cost of repairs. If repair costs exceed the car’s value, it may be declared a total loss. At this point, your vehicle will be a write-off, meaning that your insurance company will provide you with an insurance payout for the value of the vehicle based on a replacement cost value or actual cash value assessment. In contrast, if your stolen car is repairable, you'll be able to go ahead and have it fixed by an auto body shop. Note that stolen personal items are not typically covered under comprehensive insurance policies.
Once you've reached a settlement with your insurance provider and your car is repaired or replaced, you'll sign a release form, which is a document stating you are legally prohibited from pursuing your stolen car insurance claim further. After it's signed, your insurer will provide a direct deposit or certified cheque of your payment amount.
So, your stolen car is recovered. What happens now in terms of your auto insurance? Here's what you should know:
If you've already received an insurance payout for your stolen vehicle, most insurance companies will keep the stolen car. Depending on your provider, you may be able to buy back your stolen car, but your provider may be given a salvage title.
Regardless of whether your vehicle is recovered or not, you won't be able to reclaim the deductible you paid under your comprehensive coverage. This out-of-pocket payment is not part of your reimbursement.
If your vehicle is damaged beyond repair or deemed unsafe to operate, it may receive a salvage title from your insurance provider. This can affect your car's resale value and your ability to purchase car insurance in the future. In this case, your vehicle is likely a write-off and will be sent to the scrap yard, and you'll be able to keep the money your insurance provider gave you.
In the unfortunate event that you have your vehicle stolen and you file a claim, you can expect your future insurance rates to increase.
Once your stolen car is returned to you, there are a few legal steps you need to take before getting back out onto the road:
If you've reported your vehicle stolen, you'll need to contact your provincial transport ministry and update its registration status.
Police officers will remove your stolen car from their database. However, it doesn't hurt to confirm that it has been removed when your car is returned to you.
Sometimes, thieves will rack up tolls or tickets on your stolen car. You may need to dispute these charges with proof that your vehicle was stolen to avoid paying these costs.
Depending on what province you live in, you may be required to undergo a vehicle safety inspection before it's allowed back on the road. Take a look at some provincial examples below:
Ontario: If a vehicle has been declared salvage or rebuilt due to theft-related damage, a Safety Standards Certificate is required before registration.
British Columbia: All salvage or rebuilt vehicles undergo structural integrity and mechanical safety inspections through the Commercial Vehicle Safety & Enforcement before the vehicle can be licensed and insured.
Alberta: According to Clutch Blog, all salvage vehicles must undergo a Salvage Vehicle Inspection at a licensed facility to regain their rebuilt status.
If your car is stolen and hasn't been recovered within a 30-day waiting period, your insurance company will likely deem it a total loss. At this time, your insurance payout process will begin. Here's what happens next:
A basic car insurance policy does not cover theft protection. Therefore, your insurance company will review your current coverage and determine that you have added comprehensive insurance to your plan, which is a type of optional coverage that reimburses or replaces stolen vehicles.
Next, an insurance company will consider the value of your car at the time it went missing. Actual cash value takes into account depreciation, so the insurance company is likely to assess your car’s age, condition, mileage, and more. Once a payout is agreed upon, you'll need to transfer ownership of your car to your insurance company, at which point, the reimbursement will be made, and you can go ahead and shop for a new car.
With car thefts rising across Canada, prevention matters more than ever. Here are steps you can take to mitigate your risk of vehicle theft:
While anti-theft devices may not completely eliminate your risk of car theft, they can substantially reduce your chances of falling victim to this type of crime. Consider investing in a steering wheel lock, a dash camera, a car tracker, and an engine immobilizer. Not only does this reduce your chance of car theft, but it can also qualify you for a discount on your insurance coverage.
If you can, park your vehicle in an underground parking lot or secure garage or driveway at home. When parking on the street, choose a well-lit area with surveillance footage and lots of traffic to keep your car safe.
Never leave personal items in your vehicle. Most thieves are opportunists, meaning they're specifically looking for cars with items readily available. You can mitigate attempted theft by simply hiding your things or taking them with you. This can be something as simple as remembering to grab your phone or not leaving your wallet out on the seat.
Comprehensive insurance isn't mandatory. So, if you're not specifically asking your insurance provider to add this to your basic plan and your car is stolen, you'll be paying out of pocket for damages. To protect yourself, review your policies and make changes accordingly.
Car theft is something no one wants to experience. If this happens to you, knowing what to do can help you prepare for the aftermath. Stay informed, invest in theft-prevention devices to prevent car theft, and ensure you have comprehensive insurance. Whether you need help filing a claim, updating your insurance, or due to a car insurance renewal, the experienced brokers from BrokerLink have got you covered for the following:
Third-party liability
Accident benefits coverage
Uninsured motorist insurance
Collision coverage
Accident forgiveness
GAP insurance
To work with us, contact BrokerLink over the phone or by email today!
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It can, though it depends on the circumstances of the theft. If the theft involves damage to the car, then chances are it will reduce its value. This is especially the case if the car is deemed a total loss by your insurance company upon recovery. Cars that are deemed write-offs tend to be worth 20% to 40% less than other cars. Another circumstance other than damage that can devalue your car is the mileage. If the person who stole your car significantly increases the mileage, your car will be of a lower value than it was previously.
Mileage has a major impact on depreciation, which is why driving less is so important if you want to save money on car insurance. Plus, low mileage car insurance is usually much cheaper than regular car insurance.
If your car was found after the insurance claim had been filed and after the waiting period had passed, the insurance company may now have ownership of your car. Thankfully, even if this is the case, the personal items inside the car will still belong to you. Ownership of them does not transfer to your insurance company, simply because they were in the car.
No, most insurance policies, including comprehensive coverage, do not cover personal items stolen from a car. The only items that comprehensive insurance may cover are permanent fixtures in a car, like a steering wheel, built-in stereo, or catalytic converter. Other personal belongings, like jewellery, cash, electronics, etc. will not be covered, so you will not be able to file an insurance claim to help you pay to repair or replace any of these items. That said, you should check your home insurance policy in case it provides coverage for personal items stolen from a vehicle.
When the police recover a stolen car, they will notify the owner of the car as soon as possible. From there, they will input the vehicle identification number and licence plate number into the Canadian Police Information Centre. Once the relevant data has been inputted and the car has been cleared as evidence, they will arrange a pickup time with the owner.
This ultimately depends on the state and condition of your car at the time of recovery. It also depends on your insurance company, as if they deem it a write-off, you may not have the option of keeping it even if you wanted to. Further, if the insurance claim has yet to go through, then ownership of the car is still yours, allowing you to choose what you want to do with it. However, if the claim already went through and you received your payout from the insurance company, then the company now has ownership over the car, which means they get to decide what happens to it.
Though rare, it is possible for your stolen car to be located several years after it went missing. If this happens to you, then by this time, the insurance claims process would be complete which means the insurance company owns your car. Thus, it is up to the insurance company to decide what to do with it. In some cases, they may sell it if it’s in good enough condition.
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