They might do so to speed the recovery of the vehicle and or to protect themselves (from potential legal liabilities) in the event that the vehicle causes accidents or other damages as it's being repossessed or transported to their repossession lot or storage facility.
However, it's worth noting that there might be specific local regulations governing repossession and reporting of stolen vehicles. Therefore, it's advisable to check the local laws and regulations to get a comprehensive understanding of the procedures and practices related to repossession in your jurisdiction.
