Does insurance cover car theft?

The realization that your car has been stolen is one of the most disturbing things you can experience as a driver, whether parked in your driveway or in a busy parking lot.

After standing there and panicking for a few minutes, the first thought in your head is likely to be: Now what?

Soon followed: how the hell am I going to pay for this?

The good news is that you don’t have to pay out of pocket to replace your car in the event of a theft. as long as you have suitable insurance

What type of auto insurance covers theft?

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Specifically, the type of car insurance that covers theft is comprehensive insurance., an additional policy that is included in the full insurance.

More details: Comprehensive Vs. Accident insurance: differences and when can be canceled

In addition to theft and burglary, comprehensive insurance covers repairs to your vehicle related to non-collision claims such as:

  • Fire.
  • Flood.
  • Greetings damage.
  • Falling objects.
  • Vandalism.
  • Natural disasters.
  • Disorder.

If you have a minimum coverage policy that only includes personal liability insurance, it will not cover your car in the event of theft. In addition, to file a claim for theft, you must have a valid comprehensive insurance policy at the time of the incident.

More details: Auto Insurance Liability Limits: How Much Do You Need?

How much will the insurance cover?

With any type of auto insurance, your policy has a limit, which is the maximum amount your insurance company will pay in the event of an insured event. When it comes to claims of theft, you will be reimbursed for the value of the new vehicle based on your vehicle’s ACV or actual cash value.

How is my ACV determined?

Your vehicle’s ACV is determined by your insurance company. The figure is calculated by taking the replacement value of your vehicle and subtracting the depreciation of the vehicle at the time of the theft.

So, if your 2010 Honda Civic was stolen, you can’t replace it with a 2019 Tesla Model 3.

If your Civic’s ACV was worth $ 5,000 at the time of the theft, you will be given $ 5,000 minus your deductible, which you will spend on a new car.

What types of damage are covered?

Theft or entry of your vehicle can result in various types of damage. There are four main theft scenarios covered by comprehensive insurance:

  • Car theft. If your car gets stolen and you have comprehensive insurance, your insurance company will cover the cost of replacing your car, up to the ACV of your old car.
  • Damage to the car. If your car is broken into and there is damage, such as a broken window or a disabled anti-theft device, the repair will be paid for under the comprehensive insurance policy.
  • Vandalism. If your vehicle has been vandalized in any way, be it theft or burglary, your full insurance policy will pay for the restoration or repair of the vehicle.
  • Stolen parts. Comprehensive insurance usually pays for the replacement of stolen car parts, such as a custom stereo or aftermarket rims.

Car insurance covers stolen private Items?

Does insurance cover car theft?  - Does car insurance cover stolen personal items?

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Unfortunately, your car insurance does not cover personal items that were in the car at the time of the theft. This is what property insurance is for.

A home or renter’s insurance policy will cover your personal belongings anywhere in the world, including in a stolen vehicle. Just keep in mind that valuable items like computers or money usually have a low coverage limit.

For example: If your car is broken into outside a college dorm and your laptop is stolen by a burglar, you will only receive refunds up to the limit set by your policy, which is often around $ 1,500.

If you store expensive items in your vehicle, it is recommended that you increase the coverage limits for greater protection. If your insurance company does not cover the full cost of the stolen item, you may have to pay a certain amount out of your own pocket to replace it.

Will I get a loan if mine is stolen?

If your car is stolen and you need a car to travel to work, some insurance companies will provide you with a temporary car rental. If you have car rental compensation, which is an approval policy, it should apply in the event of theft.

However, it is recommended that you check with an agent to find out what your specific policy covers.

What to do if your car is stolen

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If you are anything like me, your first reaction after learning that your car has been stolen is real panic. However, I am here to tell you that timing is of the essence when you are dealing with a car theft.

Here’s what to do if your car is stolen:

  • Call the police. The first thing you should do (after a few deep breaths) is to call the police as soon as possible. Don’t spend hours searching your area to find it, unless you’ve forgotten where you parked. To apply for insurance, you will probably need to provide a police report detailing the incident.
  • Call your insurance company. The next thing you need to do is notify your insurance company of the theft. In addition to the police report, they will likely ask you for information such as a description of the car, what personal belongings were in the car, and a copy of the name. If the vehicle is funded, you will also want to share your lender’s information.
  • Call your lender. If the stolen vehicle is currently being paid for, the last person you should call is your financing company. They will need to keep in touch with your insurance company throughout the entire application process. If the car never gets rebuilt and you have breakdown insurance, your insurance company can pay off the remaining loan on your behalf.

More details: What is gap insurance (and should you get it)?

What happens if your car is found?

If your car is rebuilt, this does not mean that it will be found intact. If your car gets stolen and returned, several things can happen.

If the vehicle is found without any major damage or missing parts, you can return it and continue driving without any problem. That is, after it has been processed as evidence of the crime of theft.

Your insurance company will cancel the claim and if you have not received compensation, nothing will happen later.

If the vehicle is found with major damage, your insurance company will pay for the repair if you have full insurance.

If the car is damaged so badly that the installers declare it complete loss, you will be reimbursed for the cost of the new car, up to the ACV of the old car.

Ways to prevent car theft

Stealing a car is quite unpredictable, but there are ways to reduce the likelihood of theft.

Here are some of my suggestions:

  • Always close your car doors, even in the garage and running errands.
  • Never leave windows open when your car is parked.
  • Install anti-theft device in your car if it doesn’t come with it.
  • Do not leave valuables in the car if you can help.
  • Trust your intuition– if you feel that you have parked in an unsafe place, go to another place.


Car thefts can happen anytime, anywhere.

The best way to protect yourself and your car is to purchase a full coverage, full coverage insurance policy. If the unthinkable happens, you don’t have to spend your savings buying a new car.

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