Does Car Insurance Cover Theft?
Quick Answer
If you have comprehensive car insurance, you should be covered against vehicle theft and break-ins. However, any personal belongings that are stolen from the car are not covered. Your renters or homeowners insurance policy might cover these items.
Auto insurance can protect you if you're involved in an accident, but does car insurance cover theft? It's an important question, as more than 1 million cars were stolen in the U.S. in 2023 alone, according to the National Highway Traffic Safety Administration (NHTSA).
Comprehensive car insurance can offer much-needed financial support if a thief takes off with your vehicle. However, personal belongings taken from your car are usually excluded and should instead be covered by renters or homeowners insurance.
Does Car Insurance Cover Theft?
Car theft should be covered by your auto insurance policy if you have comprehensive car insurance. This type of coverage will pay to repair or replace your car if it's stolen or damaged by an incident unrelated to a collision. That includes damage caused by a break-in—or a total loss if your car is stolen. It also covers:
- Vandalism
- Weather-related damage caused by windstorms, lightning, earthquakes and hail
- Fire and explosions
- Floods
- Damage from animal contact
Comprehensive coverage is an optional add-on, meaning it isn't required if you own your car outright. But if you lease or finance your car, the lender will likely require you to purchase some level of comprehensive coverage.
Some combination of the following types of car insurance are required in most states, but none of them cover theft.
| Type of Insurance | What It Covers |
|---|---|
| Liability insurance | Injuries and property damage of the other party when you cause an accident |
| Medical payments coverage | Medical expenses for yourself and your passengers after an accident |
| Personal injury protection | Additional accident-related expenses, such as lost income |
| Uninsured and underinsured motorist coverage | Injuries or property damage when you're involved in an accident with someone who doesn't have insurance, or lacks enough coverage to cover all the costs |
Note: Not all states require drivers to obtain all of the above types of coverage.
Beyond your state's requirements, you might choose to add comprehensive insurance and collision coverage. The latter pays to repair or replace your car if it's damaged after hitting another car or object while driving.
How Much Will Comprehensive Insurance Cover if a Car is Stolen?
No matter what level of coverage you have, if you file a claim, you'll need to meet your deductible before your insurance carrier pays their share. If your car is stolen, the amount of your insurance payout will depend on your vehicle's actual cash value, which is determined by the insurer. Your insurance company might consider current market value, recent sales, depreciation, third-party tools and an insurance adjuster's input when making this determination.
Let's say your car is stolen and you have a $1,000 deductible. After you file a claim and pay the deductible out of pocket, your insurance company then pays out $19,000—equal to the vehicle's actual cash value. That probably won't be enough for you to buy a current model-year vehicle of the same make and model, but it can help. If you're upside down on your car loan, meaning the amount you owe is greater than the car's actual cash value, you'll still be on the hook for repaying the balance.
What Happens if a Stolen Car Is Found?
It's possible for a stolen vehicle to turn up after the owner has already filed a claim and received an insurance payout. If this happens, the car is considered property of the insurance company and they should be notified immediately.
Does Car Insurance Cover Personal Belongings?
Unfortunately, comprehensive car insurance does not cover personal belongings that were inside of a stolen car. This is less than ideal, but your renters or homeowners policy might be able to help. Check to see if personal property coverage is included in your plan. The coverage limit might be lower for items stolen outside of your home, but it's worth looking into. Just keep in mind that you'll need to file a claim with your insurance company and cover your deductible.
How to File a Claim for a Stolen Car
If your vehicle is stolen, follow these simple steps to file a car insurance claim:
- Report the theft to the police and your insurer. Car insurance companies typically require a police report to process a stolen vehicle claim. Doing so can also increase your odds of recovering the car. First gather any information you think may be helpful, including when and where you last saw your vehicle. From there, you can file a claim with your insurance carrier.
- Clarify your coverage. Find out if you have comprehensive car insurance. If so, how much does it cover? What is your deductible? Will your policy pay for a rental car while you're waiting? This information can help you make a financial plan for moving forward.
- Repair or replace your car. This depends on whether your car is recovered. If it is, the damage might not be severe enough to warrant a replacement. But it may be considered a total loss if the expected repair costs exceed 70% of the car's actual cash value. Either way, you should receive an insurance payout if your claim is approved.
What Are the Most Common Stolen Cars?
Below were the top 10 most stolen cars in 2023, according to the National Insurance Crime Bureau:
- Hyundai Elantra
- Hyundai Sonata
- Kia Optima
- Chevrolet Silverado 1500
- Kia Soul
- Honda Accord
- Honda Civic
- Kia Forte
- Ford F-150 Series Pickup
- Kia Sportage
How to Prevent Car Theft
While it isn't possible to completely prevent vehicle theft, the NHTSA says the following steps could help deter criminals:
- Never leave your vehicle running when you aren't in the car, even if it's just to run a quick errand.
- Always keep your car keys with you.
- Park in well-lit areas—and always lock up and turn on your alarm if you have one.
- Try not to leave personal belongings in your car. If you must, keep them out of public view.
- Consider using a steering wheel lock or other anti-theft device.
You can also consider downloading a vehicle-tracking app, which could come in handy if your car goes missing.
The Bottom Line
A stolen car can create a major disruption that impacts your finances and your ability to get around. Filing an insurance claim can also lead to a higher premium, though this may be unavoidable if your vehicle is stolen. The good news is that there are simple ways to reduce your risk of being victimized. Adding comprehensive car insurance to your policy can offer extra protection.
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About the author
Marianne Hayes
Marianne Hayes is a longtime freelance writer who's been covering personal finance for nearly a decade. She specializes in everything from debt management and budgeting to investing and saving. Marianne has written for CNBC, Redbook, Cosmopolitan, Good Housekeeping and more.
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