How Vehicle Recalls Work in Canada and the USA

Vehicle recalls are one of the most important safety tools available to consumers — yet millions of affected vehicles stay on the road with unrepaired defects every year. Here is how the system actually works.

What Triggers a Recall

A vehicle recall is issued when a manufacturer or government authority determines that a vehicle, its equipment, or an accessory poses an unreasonable risk to safety, or fails to comply with minimum safety standards. In practice, most recalls begin when a pattern emerges — through warranty claims, field service reports, owner complaints, or internal engineering testing — that points to a systematic manufacturing or design defect.

Defects that commonly trigger recalls include brake failures, fuel system leaks, steering and suspension problems, airbag malfunctions, electrical faults that can cause fires, and software issues that affect critical safety systems.

Manufacturer vs. Government-Initiated Recalls

Recalls come in two forms. Voluntary recalls are initiated by the manufacturer after it becomes aware of a safety defect — this accounts for the vast majority of recall campaigns. The manufacturer notifies the regulator, files the required paperwork, and begins the remediation process.

Government-ordered recalls happen when the regulator — Transport Canada or NHTSA — conducts its own investigation, concludes a defect exists, and formally orders the manufacturer to issue a recall. While less common, these tend to involve situations where the manufacturer has been slow to act or disputed the severity of the issue.

From a consumer standpoint, both types produce the same outcome: free repairs at an authorized dealer.

How Transport Canada and NHTSA Handle Recalls

Transport Canada oversees vehicle safety in Canada under the Motor Vehicle Safety Act. Its Defect Investigations and Recalls program receives defect reports, manages investigations, and publishes the official recall database used by Canadian consumers and dealers.

NHTSA — the National Highway Traffic Safety Administration — performs the same function in the United States under the National Traffic and Motor Vehicle Safety Act. NHTSA maintains safercar.gov and processes tens of thousands of owner complaints annually to identify potential defect trends.

The two agencies share information and coordinate on cross-border investigations, but they operate independently. A recall filed with NHTSA does not automatically apply in Canada, and vice versa. For more on this, see our guide on why recalls differ between Canada and the USA.

What Happens When a Recall Is Issued

Once a recall is filed, the manufacturer is required by law to notify all known owners of affected vehicles by first-class mail. The letter must describe the defect, explain the safety risk, state what remedy will be provided, and give a timeline for when parts will be available.

The owner then contacts an authorized dealership to schedule the repair. The dealership orders the necessary parts, performs the repair, and submits the claim to the manufacturer for reimbursement. Recall repairs are always free — the manufacturer pays, not the owner. This applies regardless of whether the vehicle is still under warranty or how old it is.

The Scale of Unresolved Recalls

Despite the free-repair system, a surprising share of recall campaigns go unaddressed. Estimates suggest roughly 1 in 5 vehicles in Canada has at least one unresolved recall at any given time. The numbers in the United States are similar.

Why do so many recalls go unrepaired? Several reasons:

The owner never receives the mail notice — they moved, the vehicle changed hands, or the letter was overlooked.

The owner receives the notice but procrastinates, assuming the defect is unlikely to affect them.

Parts are not yet available and the owner forgets to follow up once they arrive.

Used vehicle buyers are unaware of the recall history when they purchase.

What Happens If You Ignore a Recall

There is no legal penalty for an owner who does not complete a recall repair — you will not be fined or have your registration suspended. However, the consequences of ignoring a recall can be serious:

The defect remains in your vehicle, creating a continued and often worsening safety risk to you and your passengers.

If an accident occurs that is directly linked to a known, unrepaired defect, your insurance coverage may be affected — some insurers investigate recall compliance after claims.

If you sell the vehicle, you may be liable for failing to disclose a known safety defect.

Recalls do not expire — the remedy remains available even years after the campaign is filed. That said, replacement parts can become scarce as a vehicle ages, so acting sooner is always better.

How to Check If Your Vehicle Is Affected

The most reliable way to check for open recalls is by your Vehicle Identification Number (VIN) — the 17-character code unique to your specific vehicle. Using your VIN, you can get an exact result rather than a general list for your make, model, and year.

Not sure where to find your VIN? Our guide on how to find and use your VIN number covers every location it appears on your vehicle and in your documents.