New regulations will make Canadian cars harder to steal (and may lower insurance prices)

New rules coming to Canada should make cars harder to steal, which may help lower insurance rates. Late last year, the federal government announced plans to update Canada's motor vehicle safety regulations to strengthen anti-theft protection standards, making vehicles more secure moving forward. 

With auto thefts in Canada steadily increasing over the past decade, this is welcome news for the property and casualty insurance industry — which has long awaited news of stronger regulatory requirements to help prevent vehicle theft. 

The Insurance Bureau of Canada has emphasized that many modern vehicles have become increasingly easy to steal, making updated anti-theft standards essential for improving vehicle security and discouraging criminals. 

Breaking it down 

The Canada Motor Vehicle Safety Standards (CMVSS) are mandatory regulations enforced by Transport Canada to ensure new vehicles and equipment sold in Canada meet minimum safety requirements, including brakes, lighting, tires, and structural integrity. Manufacturers must certify their products to comply with these standards to sell them in the Canadian market. 

The new CAN/ULC 2025 standard, which would replace the outdated CAN/ULC 1998 standard, would require automakers to test vehicle immobilizer systems against modern “electronic attack tools” — devices thieves now use to steal cars without breaking in the old-fashioned way. 

In the past, car theft often involved basic tools like screwdrivers or wire cutters. Today, criminals use advanced electronic devices to program new keys through a vehicle’s diagnostic port, mimic key signals, or relay a key fob’s signal to start a car remotely. 

The goal of the updated standard is to help make vehicles more resistant to these high-tech theft methods. The Government of Canada says this will bring Canadian regulations in line with global anti-theft standards. 

Car manufacturers will have a two-year transition period to become compliant with the new CAN/ULC 2025 standard. 

What are the new features? 

The new CAN/ULC 2025 standard targets modern “electronic attack tools” commonly used by car thieves, such as key programmers, key emulators, and signal relay devices. The proposed changes would require automakers to meet a newer anti-theft requirement and ensure vehicle immobilizer systems can stand up to today’s more advanced tools.  

• On-board diagnostics (OBD) key programmers: Tools used to program new or replacement keys by plugging into the on-board diagnostics port of a vehicle (OBD). 
• Key signal relay equipment: Tools that allow a thief to capture and transmit key signals, allowing a second thief near the vehicle to transmit the signal to a receiver and start the vehicle. 
• Emulators: Devices that mimic or emulate car keys for certain vehicle models. 

The new standard also expands the list of theft tools manufacturers must consider—from basic tools like screwdrivers to modern high-tech electronic equipment.  

These changes would apply to all vehicles sold in Canada, including imports, after a two-year transition period. 

What is the cost? 

The federal government estimates the proposed amendments will impact approximately 45 companies, with automakers facing projected compliance costs of approximately $800,000 spread over 10 years (2026–2035).  

A two-year transition period is also included, giving manufacturers time to adapt and implement the new standards gradually helping avoid sudden supply chain disruptions or sharp price increases. 

A public consultation period is currently underway, with feedback accepted until March 12, 2026. 

How will this affect insurance risk and premiums? 

With vehicle theft fueling insurance claims across the country, these updated standards could help reduce theft risk over time and eventually affect auto insurance premiums.  

Insurers expect fewer theft-related claims which could help stabilize, or even reduce, rates for well-protected vehicles. The Insurance Bureau of Canada has also noted that vehicles not meeting the new security requirements may be considered at higher risk. 

Kathy Dang, licensed insurance advisor at Surex, points out that certain vehicles may face additional insurance costs due to theft risk, but these charges can often be avoided with added security measures: 

“Vehicles identified as having a high theft rate may incur a ‘high theft vehicle’ surcharge, ranging from $500 to $1,500, depending on the specific carrier. This surcharge can often be reduced or entirely waived through the installation of an approved anti-theft device.” 

While the CAN/ULC 2025 standards are a proactive step toward stronger security and lower insurance risk, they may also bring added compliance and service costs for manufacturers and property owners. 

What can drivers do, in the meantime, to deter car theft? 

As these proposed changes move toward implementation, it is more important than ever for drivers to stay vigilant and take proactive steps to protect their vehicles. Here are some practical measures to consider: 
                                       
1. Lock your doors and close windows when parked 
 
2. Park in well-lit areas or in a locked garage 
 
3. Use a steering wheel or brake lock 
 
4. Install a car alarm and/or tracking device 
 
5. Don’t leave valuables in plain sight 
 
6. Use a data port lock to prevent thieves from reprogramming your vehicle 
 
7. Keep keys in a metal/aluminum box to block the radio signals 
 
8. Keep keys away from the front door so thieves can’t easily copy them 

9. Install a security/surveillance camera outside of your home and make sure that it’s aimed toward your vehicle 

10. Regularly test the emergency alarm on your vehicle 

Also, to protect your identification, you should consider making photocopies of your insurance and ownership documents so if your car is stolen, the originals are not lost. 

Dang also shares more advice on how drivers can protect their vehicle from being stolen. 

“I consistently recommend that clients utilize a garage for vehicle parking whenever feasible. Should the primary motivation for acquiring an anti-theft device be to mitigate insurance costs, I advise contacting your broker to ascertain whether your vehicle is subject to a high theft vehicle surcharge.” 

Some car companies are also taking initiatives to help curb theft. For example, Ford Motor Co. has stepped up anti-theft technology in its popular F-150 pickup (one of Canada’s top 10 most stolen vehicles) to help combat rising theft rates. Launched with the 2024 F-150 model year, Ford’s Stolen Vehicle Services introduced a “Start Inhibit” feature, allowing owners to remotely disable the engine through the ‘FordPass’ smartphone app, preventing thieves from starting the truck. 

Dang notes that in addition to manufacturer-installed features, drivers can take extra steps and use additional security measures to protect their vehicles.  

“The installation of an anti-theft device is a viable option. While numerous devices are available, TAG Vehicle Tracking is widely recognized by insurance carriers and can be installed by authorized Speedy Glass locations. The estimated cost for this service ranges from $400 to $525, inclusive of taxes.” 

She also highlights that not all anti-theft devices are treated equally by insurers, and some may require specific professional installation to be recognized: 

“It is important to note that some carriers may exclusively acknowledge aftermarket engine immobilizers, which necessitate professional installation by a manufacturer’s or distributor's authorized technician. The cost for such aftermarket devices typically ranges from $500 to $1,500,” she cautions. 

Bryan Gast, National VP, Investigative Services of Équité Association says in a report that the proposed updates are a critical step forward in bolstering public safety across Canada.  

“It is vitally important that these standards keep pace with technology, criminal sophistication, and international best practices by addressing existing vulnerabilities.” 

Gast also emphasizes that these regulatory updates go beyond protecting individual drivers, helping tackle the broader issue of organized crime.: 

“These proposed amendments not only protect Canadians but also serve to disrupt the organized crime groups that rely upon vehicle theft to fund illicit activities.” 

Overall, these changes are designed to better address modern vehicle theft tactics, including sophisticated electronic methods used by organized criminals, and improve vehicle security moving forward.