Why vehicle theft is still driving up insurance rates in Markham and Durham regions
Auto theft in Ontario has been falling, but auto insurance rates in Markham and Durham Region keep climbing. That is not a contradiction. Insurers price on multi-year claims trends, not on a single good year, and the vehicles being stolen today cost far more to replace than the ones stolen five years ago.
Westland Insurance spoke with Shahrom Aboli, Senior Insurance Advisor at Westland, who has spent more than 19 years in the industry with a focus on personal lines and high-value vehicle clients across the Greater Toronto Area and Durham Region, to unpack what is actually happening at renewal time and why.
Why does it feel like theft is down, but my rate keeps going up?
This is the question Aboli hears most often, and it comes from clients with a clean record and no changes to their vehicle.
“Insurance premiums do not respond immediately to short-term changes,” Aboli says. Insurers rely on multi-year claims data before they adjust pricing, so a single year of improving theft numbers does not undo several years of record losses.
What the numbers actually show
Ontario has seen a real decline in auto theft activity over the past year. But insurers are still absorbing the financial impact of the record-high theft years that came before it. Those losses do not disappear overnight. They work their way through pricing over time, which is why a client can see theft headlines trending in the right direction while their own renewal still goes up.
Why fewer thefts haven’t meant lower premiums
Two things are compounding the lag. First, insurers need to see consistent, sustained improvement over multiple years, not one year, before that shows up as savings on a policy. Second, the cost of replacing a modern vehicle has increased significantly. Today’s vehicles carry advanced technology, sensors, cameras, and radar systems, so both repair costs and total loss settlements are considerably higher than they were four to five years ago.
Put together, fewer vehicles may be stolen today than during the peak of the crisis, but the overall cost of claims remains high. That is the disconnect clients are feeling.
Is Markham actually a high-theft area?
The honest answer is more nuanced than a simple yes or no. Markham’s own theft rate is not necessarily the outlier some drivers assume it is. What is unusual is the mix of vehicles Markham drivers tend to own.
What’s driving Markham rates if it’s not simply “more theft”
According to Aboli, Markham has a high concentration of high-value SUVs, luxury vehicles, and pickup trucks, and those are exactly the vehicle types most frequently targeted by organized auto theft. Markham also has a high level of vehicle ownership and heavy commuter traffic along Highway 404 and Highway 7. That traffic density adds collision frequency into the mix as well.
So, the pressure on Markham premiums is coming from two directions at once: the vehicles people in Markham tend to drive are disproportionately attractive to thieves, and the volume of daily traffic on major corridors adds to collision-related claims. Aboli notes that Markham clients most often come in asking specifically about theft surcharges and high-risk vehicle classification, which reflects how central that issue is locally.
How does the Durham region compare?
Durham has a more balanced overall risk profile than Markham. Theft is still a factor, but it is one factor among several rather than the dominant one.
What’s different about Durham’s risk?
Communities such as Pickering and Ajax have seen premium increases tied to their proximity to Toronto and to major commuter routes, including Highway 401, Highway 407, and Highway 412. Insurers weighing Durham risk are also factoring in higher annual commuting mileage, increased collision frequency on those highways, rapid suburban growth adding to traffic congestion, and the rising cost of repairing today’s technology-heavy vehicles.
Where Durham drivers are noticing change
The practical difference shows up in what clients ask about. Durham clients generally come in asking about their overall premium increase. Markham clients ask more specifically about theft surcharges and high-risk vehicle classification. As Aboli summarizes it, Markham is still heavily influenced by auto theft, particularly high-theft SUVs and luxury vehicles, while Durham’s rate pressure comes from a mix of commuting patterns, highway collision frequency, and repair costs, with theft as one contributing factor rather than the main driver.
How does vehicle theft actually affect your individual premium?
Theft risk does not show up as one line item. It touches several parts of a policy at once, and Aboli sees clients hit with premium jumps of $1,000 or more on certain high-theft vehicles, often without a single ticket, accident, or claim on their record.
High-theft vehicle surcharges, explained
One of the biggest contributors is the rise in comprehensive, or physical damage, rate groups. Some insurers have also stopped offering the OPCF43 Removing Depreciation Deduction endorsement (sometimes called the waiver of depreciation) on certain high-theft vehicles altogether or will only continue to offer it if specific anti-theft requirements are met. That combination has made remarketing a policy to a different insurer far more common than it used to be, rather than simply accepting the renewal as written.
The vehicles Aboli sees most commonly affected include the Lexus RX, Honda CR-V, Toyota RAV4, Toyota Highlander, Dodge Ram 1500, Ford F150, and other high-demand SUVs and pickup trucks.
Does your specific make and model matter, and how is that decided?
Insurers rate vehicles in part through the Canadian Loss Experience Automobile Rating system, commonly known as CLEAR, which assigns a risk rating to each make and model based on claims history, including theft. Two vehicles that look similar on the outside can carry very different ratings depending on how frequently that specific model is stolen and how costly those claims tend to be.
What comprehensive coverage does and doesn’t include
A theft claim is not automatically part of every policy. Theft is covered under comprehensive coverage or all perils, and both are optional coverages, not mandatory ones. That said, most finance and leasing companies require physical damage coverage, meaning comprehensive and collision, as a condition of the loan or lease.
A separate misconception worth clearing up: a stolen vehicle claim does not, on its own, cause a client’s premium to increase at their next renewal. A theft claim is a comprehensive claim, not an at-fault collision claim. If a client sees their premium rise after a theft claim, it is generally because insurers are adjusting rates based on regional theft trends, vehicle theft statistics, and replacement costs, not because of that specific claim. Rating factors like at-fault claims, convictions, and driving history continue to be assessed separately.
Aboli also flags a common mix-up around anti-theft technology: a factory-installed GPS system or something like OnStar does not automatically satisfy an insurer’s anti-theft requirement. Many insurers require an approved theft recovery system such as TAG or KYCS specifically, because those systems have demonstrated higher vehicle recovery rates and meet insurer underwriting standards. Factory-installed tracking or aftermarket anti-theft add-ons do not qualify on their own.
What does a broker actually see at renewal time?
A real example from a Markham-area policy
One recent case involved a long-standing personal auto client insured with an insurer for several years. The client leased a Lexus RX450h+ that was later identified as a high-theft vehicle. There were no issues when it was first added to the policy, but at renewal, they increased the comprehensive rating significantly and was no longer willing to offer the OPCF43 Removing Depreciation Deduction endorsement for that vehicle.
Because the vehicle was leased, that endorsement mattered. Without it, a total loss settlement, following a theft or an unrecovered vehicle, could be based on the vehicle’s depreciated value rather than its original purchase price, which can create a financial gap against outstanding lease obligations.
Rather than accepting the renewal as offered, Aboli compared alternative insurers and also looked at a standalone depreciation protection option through another insurer. After weighing coverage, deductibles, and long-term value, the policy was moved to Intact. The new premium ran roughly $800 higher than staying with the existing insurer, but it kept the OPCF43 endorsement and appropriate physical damage coverage in place.
“The lowest premium is not always the best value,” Aboli says of the outcome. The client’s decision came down to understanding the financial consequences of being underinsured if a total loss occurred, not chasing the smallest number on the renewal notice.
The coverage details most people overlook
Aboli consistently steers clients toward reviewing three things that go well beyond the surcharge line: the deductible, the loss-of-use limit, and the OPCF43 endorsement.
Many insurers now raise the comprehensive deductible on high-theft vehicles to $2,500 or $5,000. In some cases, insurers apply a physical damage deductible of up to 5% of the vehicle’s MSRP instead of a flat dollar figure. Clients should know their exact out-of-pocket exposure if the vehicle is damaged during an attempted theft, not just what happens if it is a total loss.
Loss-of-use coverage, known on the policy as OPCF20, matters just as much if the vehicle is stolen and not recovered right away. Historically, $1,000 to $1,500 in rental coverage was generally enough. With today’s higher rental costs, longer repair times, and ongoing delays in replacing vehicles, that same limit may run out before a replacement is in hand. Aboli encourages every client with a high-theft vehicle to check whether their loss-of-use limit still matches current realities.
Finally, on OPCF43 itself: for newer vehicles, Aboli recommends confirming whether the endorsement is in place and understanding its eligibility requirements, since a total theft loss can significantly affect the final settlement if it isn’t. As he puts it, the broker’s role is to make sure a client understands not only the premium they are paying, but how their policy will actually respond if the vehicle is stolen.
What can you actually do about it?
Anti-theft devices insurers recognize
Installing an insurer-approved anti-theft device, such as TAG or KYCS, can remove a theft surcharge, help maintain eligibility for comprehensive coverage, and preserve endorsements like OPCF43. If a required device isn’t installed within the insurer’s specified timeframe, the insurer may apply a surcharge, restrict or decline physical damage coverage, or pull certain endorsements. Some insurers surcharge up to $1,000 for high-theft vehicles without an approved device in place.
Deductible and coverage tradeoffs before you make changes
Before assuming a higher deductible is the easy fix, understand what that means in a real claim. A $2,500 or $5,000 comprehensive deductible, or a deductible set at a percentage of MSRP, comes straight out of pocket if the vehicle is damaged in an attempted theft. Weigh that against the premium savings before committing to it.
Other ways clients are managing cost right now
Beyond anti-theft devices, Aboli points clients toward a combination of levers: maintaining a clean driving record and avoiding at-fault claims and convictions, choosing an appropriate deductible for their actual risk tolerance, and taking advantage of available discounts such as telematics programs, multi-policy bundling, and driver training discounts for young or newly licensed drivers.
When it’s worth shopping the market
Not every insurer treats the same vehicle the same way. Aboli has encountered cases where an insurer would not offer OPCF43 at all for a specific high-theft vehicle, even when the client was willing to install a superior anti-theft device like TAG. In those cases, remarketing the policy to a different carrier, even one offering a higher premium, can be the only way to keep the coverage a client actually needs.
What prompts most people to call about this?
The most common trigger is renewal shock: a client opens their renewal notice, sees a significant premium increase despite no claims, convictions, or change in vehicle, and calls to ask why. During the peak of the auto theft crisis between 2021 and 2024, another common trigger was hearing that a neighbour’s or family member’s vehicle had been stolen, which prompted people to check their own coverage. Theft has moderated since then, but brokers continue to field these calls and use them as an opening to walk through prevention, insurer requirements, and coverage options.
The other common trigger is a new or replacement vehicle purchase. Clients are often surprised by the premium on a popular SUV or pickup truck, and some have discovered that an insurer will not offer OPCF43 on that vehicle at all, regardless of anti-theft technology installed. That has left more than one client wondering why a dealership would sell a vehicle that some insurers are reluctant to fully cover.
Where does a licensed broker actually make a difference?
Online quoting platforms and direct insurers can produce a premium in minutes, but they don’t always explain why one policy costs more than another or whether the coverages are genuinely comparable. Aboli has seen cases where a new vehicle was added to a policy, and the OPCF43 endorsement was quietly left off entirely, leaving the client with less protection than they had on their previous vehicle. That kind of gap can make a significant financial difference at claim time, and it is easy to miss without someone reviewing the full picture.
A broker’s role is to review a client’s entire insurance portfolio, flag gaps in coverage, explain the available options, and recommend coverage that actually provides value, not just the lowest sticker price. That includes discussing optional programs like telematics, walking through deductible choices in plain terms, and high-theft or high-value vehicles, explaining why insurers treat devices like TAG or KYCS as superior anti-theft technology.
Frequently asked questions
Does filing a theft claim raise my insurance rate? Generally, a theft claim is treated differently from an at-fault collision claim. A theft claim falls under comprehensive coverage, not an at-fault collision claim. If a premium rises at renewal, it is typically because the insurer is adjusting for regional theft trends and the vehicle’s overall risk profile, not because of that individual claim.
Why are rates still going up if auto theft is down? Insurers rely on multi-year claims data before adjusting pricing, so one year of improvement doesn’t immediately translate into lower premiums. Insurers are also still absorbing losses from the peak theft years, and today’s vehicles cost significantly more to repair or replace due to advanced technology like sensors and cameras.
Does comprehensive coverage automatically include theft protection? No. Theft is covered under comprehensive coverage or all perils, and both are optional add-ons rather than mandatory coverage. Most finance and lease agreements require comprehensive and collision coverage as a condition of the loan or lease.
What is a high-theft vehicle surcharge, and how can I remove it? It’s an added premium some insurers apply to vehicle makes and models with elevated theft risk. Installing an insurer-approved anti-theft device, such as TAG or KYCS, can remove the surcharge and help preserve endorsements like OPCF43, though some insurers still surcharge up to $1,000 without an approved device.
What should I check on my policy if my vehicle is on a high-theft list? Look at your comprehensive deductible (some insurers may raise this to $2,500, $5,000, or a percentage of MSRP for high-theft vehicles), your OPCF20 loss-of-use limit, and whether the OPCF43 Removing Depreciation Deduction endorsement is in place if your vehicle is newer or leased.
Is car insurance more expensive in Markham than in Durham Region? Both areas have seen premium pressure, but for different reasons. Markham’s increases are more closely tied to its concentration of high-theft SUVs and luxury vehicles, while Durham’s are driven more by commuting distance, highway collision frequency, and repair costs.
What should I do if my car is stolen? Contact police immediately to file a report, then contact your insurer to begin a comprehensive claim. Be ready to provide the vehicle’s make, model, license plate, and VIN.
Vehicle theft and its ripple effects on comprehensive coverage, deductibles, and endorsements like OPCF43 are exactly the kind of details that are easy to miss on your own and costly to discover after a loss. Westland’s advisors review the full picture, not just the premium, so Markham and Durham drivers know what they’re actually covered for. If your vehicle is on a high-theft list or you’re due for renewal, connect with your local advisor and we’ll take care of it.
