Is Catalytic Converter Theft Covered By Car Insurance?

We spend countless hours driving, maintaining and, simply put, enjoying our vehicles; that’s why it’s only natural for drivers to feel personally attacked when their vehicle, or a part of their vehicle, is stolen.

Over the past several years, there’s been a noticeable increase in automotive theft in Canada, especially when it comes to catalytic converter theft.

Catalytic converters may not be the most well-known or interesting part of your car, but it’s a necessary component and replacing one can be quite expensive.

If your catalytic converter was recently stolen, you’re probably asking yourself questions like, “why do car thieves steal catalytic converters?” and “is catalytic converter theft covered by insurance?”.

Continue reading to learn the answers to these questions and many more.

What is a catalytic converter and what does it do?

Catalytic converters are unique parts that are found in most modern vehicles’ exhaust systems (electric vehicles don’t have catalytic converters because they don’t produce emissions).

The primary purpose of a catalytic converter is to reduce harmful, airborne pollutants by converting them into a substance that isn’t as damaging to the environment and our bodies.

If you want to check out the catalytic converter on your vehicle, you can find it on the underside of your car (between the muffler and the engine).

Is catalytic converter theft covered by insurance in Canada?

It depends on the type of auto insurance that you have — if you have comprehensive coverage, your auto insurance provider can cover all (or a portion, depending on your coverage limits) of theft-related expenses.

However, if you only have the legally mandated forms of coverage, then you’ll have to cover the repair and replacement costs by yourself.

If you want to add comprehensive coverage to your auto insurance policy, you can speak with Surex insurance advisor to learn more about your options.

*Double-check with your broker if catalytic converter theft is covered under your comprehensive coverage. Several insurance companies across Canada are now choosing to exclude this peril under comprehensive coverage due to the increasing rise of theft and the cost of repairs/replacement.*

Why are catalytic converters stolen in Canada?

Considering that a lot of drivers don’t know that their vehicles have catalytic converters, it’s understandable for people to wonder why thieves target the part in the first place.

The primary reason why catalytic converter theft is becoming commonplace in Canada has more to do with the materials used to make the part than the purpose of the part.

Catalytic converters are made up of a variety of precious materials, including palladium, rhodium and platinum.

Car thieves have learned that they can fetch a pretty penny by selling stolen catalytic converters to scrap metal dealers.

The price of a scrapped catalytic converter depends on the type of car it was built for; catalytic converters intended for cars can be sold for $100 to $500, whereas catalytic converters designed for trucks can be worth as much as $500 to $1,500.

Why is catalytic converter theft becoming common in Canada?

In the past, it was relatively uncommon for car thieves to steal catalytic converters. Although it happened from time to time, it was far less likely that your catalytic converter would be targeted by a car thief.

However, this is no longer the case; catalytic converters are among the most stolen car parts in Canada. Why has this happened?

The main reason why catalytic converter theft is more common now than it was in the past is due to the rising price of the precious materials used to create the converter (palladium, rhodium and platinum).

Some of these materials have quadrupled in price over the past few years, making them more valuable than well-known precious metals like gold.

The rising price is directly related to the increased demand from automotive manufacturers. In order to meet the growing demands, precious material suppliers need to increase the price of their goods.

Car thieves are well aware of this and are more than happy to take advantage of the inflated prices.

Due to the increase in theft of this part, it is now in short supply across the nation. As it is illegal to drive without the catalytic converter on your vehicle, you would need to have a rental vehicle while waiting for yours to be repaired. Be sure to talk with your broker about rental car coverage, and ensure the limit is high enough to cover a rental vehicle for several weeks.

How much does it cost to replace a stolen catalytic converter?

Replacing a catalytic converter isn’t a cheap process — depending on the type of vehicle that you drive, it can cost anywhere from $1,500 to $2,500 to buy and install a new catalytic converter.

Interestingly enough, this is significantly less than what a thief can make for stealing a catalytic converter.

3 things that you can do to protect your catalytic converter (with a bonus tip)

If you don’t want your catalytic converter to get stolen, be sure to try out the following tips and tricks. These tips can help you stay proactive and make your vehicle less enticing (or accessible) to car thieves:

• Engrave your VIN (vehicle identification number) on your catalytic converter: If a scrap metal dealer sees a VIN engraved on a catalytic converter, they know that it’s a huge red flag. Many scrap metal dealers will not purchase a catalytic converter with a VIN engraved on it because it indicates that the part was stolen.
• Park your car inside a garage: If you have access to a garage, we highly suggest parking it inside of it and locking the garage door. Taking the time to do this will make it nearly impossible for car thieves to see your vehicle, let alone steal it.
  • Drivers that don’t have access to a garage should try to park their vehicles in brightly-lit areas. For additional safety, we suggest looking for a space with a security camera or near the entrance of a building.
• Adjust your car alarm — Car thieves don’t need to enter your car to steal your catalytic converter, so you’ll need to modify your alarm if you want to use it to its full potential. We suggest setting your alarm to go off when it detects a “vibration”.

You can save up to 25% when you bundle with a Surex partner

As you now know, catalytic converter theft is only covered by insurance if you have comprehensive coverage. Although adding comprehensive coverage to your policy may sound like a difficult process, it’s incredibly easy when you team up with a Surex insurance advisor.

Our team of experienced advisors can help you find and compare the cheapest auto insurance quotes in Canada in ten minutes or less!

Contact us today to find out how we can help you save up to 25% on your insurance premium (here’s a hint: bundle your policies with one of our providers!).