A system and method for reporting a vehicle theft using a telematics system is provided. The system includes a telematics terminal for determining existence or not of a trespasser, generating a theft detection message, and diagnosing the vehicle status and generating diagnostic information; a communication terminal for receiving a predetermined theft notification message and a relevant organization notification or non-notification selection message, and generating a relevant notification request signal; and a service providing center for detecting the inherent number, searching for a subscriber having the inherent number, transmitting a theft notification message, and transmitting a vehicle theft notification message to a relevant organization.