Does auto insurance cover vehicle theft?

Auto insurance does cover vehicle theft, but only if you have comprehensive coverage in your policy.

Many drivers assume their car insurance will automatically cover theft, but that isn’t always the case. Read on to learn why you need comprehensive auto insurance to cover costs if your vehicle is ever stolen.

If you need to add comprehensive insurance to your policy, enter your ZIP code into our free comparison tool to find the lowest rates.

How Auto Theft and Insurance Work

Car theft is covered by comprehensive auto insurance, which is designed to protect your vehicle from non-collision incidents that are largely outside your control.

In addition to theft, comprehensive coverage typically includes protection against vandalism, fire, falling objects, weather-related damage, and animal-related incidents.

Although many drivers confuse comprehensive and collision auto insurance, only comprehensive handles theft. If your car is stolen and not recovered, comprehensive insurance can reimburse you for the vehicle’s actual cash value, minus your deductible.

When this happens, your car will be declared a total loss. Unless you have special coverage, such as new-car replacement insurance, your provider will pay for your car’s actual cash value (ACV).

The good news is that comprehensive insurance is generally an affordable addition to an insurance policy.

Comprehensive car insurance tends to be cheaper than collision coverage and sometimes even liability insurance.

Comprehensive Costs for Auto Theft Coverage

Being the victim of a car theft can cost you a lot, emotionally and financially. Thankfully, getting the right car insurance that covers car theft is usually relatively cheap.

You can compare comprehensive insurance rates to full coverage prices to get a better idea of how affordable comprehensive insurance is.

Monthly Rates for Vehicle Theft Coverage

It’s important to note that auto insurance generally does not cover personal belongings taken from inside your car. Items like phones, purses, or laptops are covered under a homeowners or renters insurance policy instead (Read More: Homeowners Insurance Coverage).

Like all other types of coverage, comprehensive auto insurance rates vary by many factors. One of the most important is where you live. Compare average comprehensive car insurance rates in your state.

Comprehensive coverage is optional in most states, but it’s often required if you lease or finance your vehicle.

Without comprehensive coverage, you would typically be responsible for replacing or repairing a stolen vehicle entirely on your own.

Read More: Auto Insurance Rates by State

Full Coverage Insurance Protects Against Theft

Full coverage auto insurance isn’t a single policy type, but a common term used to describe a combination of coverages that offer broader protection.

In most cases, full coverage includes liability, collision, and comprehensive insurance, which covers theft.

Because theft is considered a non-collision event, it’s comprehensive coverage, not liability or collision, that protects your vehicle if it’s stolen.

If you carry full coverage and your car is stolen, your comprehensive insurance can help pay for the vehicle’s actual cash value if it isn’t recovered, or for repairs if it is found damaged.

Full coverage can also provide peace of mind, as theft often involves related damage, such as broken windows, damaged steering columns, or vandalism.

It’s essential to understand what the other parts of full coverage do and don’t cover. While they play an important role in protecting you financially, they aren’t stolen car insurance policies:

• Collision Insurance: Collision auto insurance pays for damage to your car caused by hitting another vehicle or object, regardless of fault.
• Liability Insurance: Liability auto insurance covers injuries and property damage you cause to others in an at-fault accident.

Without comprehensive coverage, even a policy described as full coverage would not protect you from car theft. Reviewing your policy details can help ensure you have the right protection in place, especially if vehicle theft is a concern in your area.

However, comprehensive insurance is not required in any state as part of the required coverage to drive. If you buy nothing but your state’s mandatory insurance, you won’t be covered against car theft.

Full Coverage Rates for Stolen Car Insurance

Full coverage costs more than a minimum coverage policy, but many drivers choose it for the protection it offers.

While comprehensive insurance is relatively cheap, most providers only offer it as a full coverage package with collision insurance. Take a look to compare minimum and full coverage rates.

Auto Insurance Monthly Rates by Coverage Level

As you can see, full coverage can cost significantly more than a minimum insurance policy. However, only full coverage policies help pay for damage to your vehicle.

Your age plays an important role in how much you’ll pay for a full coverage policy. See how much you might pay based on how old you are.

Full Coverage Auto Insurance Monthly Rates by Age

Although full coverage policies offer great protection, they can be expensive. Always shop around to find the best rates. You can also take advantage of discounts, find the best auto insurance for good drivers, and pick the right coverage level for your needs.

Whether you have it in a full coverage policy or add it as a standalone comprehensive insurance policy, it’s the only type of insurance that pays for your vehicle after it’s stolen. However, other types of insurance can help.

Other Types of Insurance That Cover Theft

Beyond liability, collision, and comprehensive insurance, there are several types of auto insurance and policy add-ons designed to provide extra financial protection and convenience.

These coverages can help with medical expenses, vehicle repairs, or unexpected costs after an accident or breakdown.

Types of Auto Insurance Coverage

Auto insurance add-ons increase the protection your policy offers, but they can get expensive quickly. It’s important to only choose the add-ons you need, so your insurance premium doesn’t get too high.

Which of these insurance types helps out when your car is stolen? Here are four auto insurance add-ons that you should consider if you’re worried about theft:

• Custom Parts and Equipment Coverage: This coverage helps pay to replace aftermarket upgrades, such as custom wheels, audio systems, or performance modifications.
• Gap Coverage: If your car is stolen and declared a total loss, gap insurance will pay the difference between what your insurance reimburses and what you still owe on your car.
• Personal Effects Coverage: Personal effects coverage can help reimburse you for personal items stolen from inside your vehicle, such as electronics, clothing, or bags.
• Rental Car Reimbursement: This add-on pays for a rental car if your vehicle is stolen or deemed a total loss and you need to buy a new one.

You should consider your needs before you sign up for these add-ons. For example, someone without a car loan doesn’t need gap insurance. If you frequently transport valuable items, personal effects coverage might be a good investment.

Regardless of which types of insurance you buy, your auto insurance does cover a stolen vehicle so long as you have comprehensive coverage.

How Insurance Companies Pay for a Stolen Car

Before you learn how insurance companies pay for a stolen car, you should understand how the different types of coverage work when it comes to theft.

See how some of the more popular car insurance options help after your vehicle has been stolen.

Vehicle-Theft Insurance Coverage Breakdown

When a car is stolen, insurance companies typically wait about 30 days to see if the vehicle is recovered before issuing a payout.

During this time, the insurer will investigate the claim, confirm the theft with a police report, and review your policy to make sure comprehensive coverage is in place.

Once a vehicle is declared a total loss, the insurance company pays out the car’s actual cash value (ACV), which reflects its market value at the time of the theft, factoring in depreciation, mileage, condition, and local market prices.

Your comprehensive deductible is subtracted from this amount. If you have an auto loan or lease, the payment is typically sent to the lender first, unless you have gap insurance, which covers if you owe more than the car is worth. Any remaining balance then goes to you.

What to Do After Your Car is Stolen

Discovering that your car has been stolen can be overwhelming, but acting quickly can help protect you financially and improve the chances of recovery.

Taking the right steps right away also makes the insurance claims process smoother. Start by documenting what happened and notifying the appropriate authorities and companies as soon as possible. Follow these easy steps to make the process as smooth as possible:

• Cancel Connected Services: Disable toll tags, parking apps, and vehicle-linked payment services to prevent unauthorized charges.
• Contact the Police: File a police report and get a copy or report number, which your insurance company will require. Let law enforcement know if your car has GPS or a tracking app.
• Gather Documentation: Collect your vehicle title, loan or lease information, keys, and photos to support your insurance claim.
• Notify Your Provider: Report the theft promptly and provide details, including the police report, vehicle information, and the last known location.

Once you’ve completed these steps, you’ll likely have to file an insurance claim. Even if you get your vehicle back, thieves often cause at least some damage during the theft.

Luckily, filing an insurance claim after a vehicle theft is easy, especially if you’ve followed the steps listed above. Unfortunately, your insurance rates will likely go up after a comprehensive claim, but you can take steps like comparing quotes and finding auto insurance discounts to help minimize the damage.

How to File a Claim After Your Car is Stolen

Filing an insurance claim after your car is stolen is usually straightforward, especially if you act quickly and have the right information ready.

Most insurers allow you to file a claim online, through a mobile app, or by phone. Having documentation prepared can help speed up the investigation and payout process. If you need to file a claim after your car’s been stolen, follow these steps:

• Cooperate With the Investigation: Respond promptly to follow-up questions from your insurer while they determine whether the car is recovered or declared a total loss.
• Provide Police Report: Submit the police report number and any details about when and where the theft occurred.
• Share Vehicle Information: Be ready to provide your VIN, license plate number, mileage, and a list of any custom parts or recent upgrades.
• Submit Required Documents: This may include photos, spare keys, loan or lease paperwork, and proof of ownership.

Since most insurance companies offer a variety of ways to file a claim, you can pick the one you’re most comfortable with.

Comprehensive claims are the third-most-common type in the U.S. You won’t have to worry too much about how to file an auto insurance claim and win for vehicle theft, because most companies are used to paying out with these sorts of claims.

Most Common Auto Insurance Claims in the U.S.

That means most insurance companies are experienced in working with their customers throughout a comprehensive claim. The only part of the process that often causes issues is the 30-day period before a missing car can be declared a total loss.

While comprehensive claims are usually easy to file, you should always try to minimize the risk that your vehicle falls into the hands of thieves.

Expert Tips to Prevent Auto Theft

While no method can guarantee your car won’t be stolen, taking proactive steps can significantly reduce your risk. Thieves often look for easy targets, so even small deterrents can make a difference and save you money on car insurance.

Being mindful of where and how you park your vehicle is one of the simplest and most effective prevention strategies. Parking in well-lit, highly visible areas and avoiding isolated locations can discourage theft, especially overnight.

Steering wheel locks, immobilizers, alarms, and GPS tracking systems can all make your car less attractive to thieves or help recover it if it’s stolen. You should also purchase comprehensive insurance if you live in an area with high vehicle theft rates.

You may also qualify for an anti-theft auto insurance discount if your vehicle has certain features or if you upgrade your car yourself. Adding anti-theft devices can provide another layer of protection.

Getting Affordable Auto Theft Coverage

Does auto insurance cover vehicle theft? Comprehensive auto insurance is designed to cover theft and related damage, giving you peace of mind whether your car is recovered or declared a total loss.

Car theft can happen when you least expect it, but comprehensive insurance or full coverage that includes collision and comprehensive policies will help protect you from major financial loss.

With flexible deductibles and optional add-ons, you can tailor comprehensive coverage to your needs and budget by learning how to compare auto insurance companies.

Check out the largest comprehensive insurance providers if you need a place to start looking for affordable coverage.

State Farm and Geico are the most popular providers for their competitive rates and nationwide coverage. Comprehensive insurance starts at $14 a month with Geico.

If you’re ready to find the perfect comprehensive car insurance company near you, enter your ZIP code into our free comparison tool today.