Vehicle theft costs Americans more than $8 billon every year, and more than 1 million vehicles were stolen in 2023, according to the National Highway Traffic Safety Administration, or NHTSA.
“Vehicle theft is a common and costly problem, but there’s a lot we can do to protect against it,” says Sophie Shulman NHTSA deputy administrator. “That’s why we’re reminding drivers to take these precautions and use good judgment every time you park and exit your vehicle.”
Having your car stolen can be incredibly scary, but if you have comprehensive insurance, your car insurance policy will cover it. Full coverage car insurance policies, for instance, include theft and coverage for vandalism and physical damage.
Read on to learn which type of car insurance covers theft, how to file a theft claim and how much money you can expect from your insurance company.
- Comprehensive car insurance is the car insurance policy that covers your vehicle if it’s stolen.
- Stolen personal items aren’t covered by auto insurance.
- If your car is stolen, you will be paid based on your vehicle’s ACV minus the deductible.
Which type of car insurance covers theft?
A full-coverage car insurance policy comprising liability, comprehensive and collision coverage offers protection in the event of theft. But you’re out of luck if you have a policy with liability coverage only.
Here are a few types of car insurance that will cover your vehicle if it gets stolen.
Comprehensive insurance
The only standard type of car insurance that covers vehicle theft is comprehensive insurance, which you get with a full coverage policy. Full coverage car insurance also includes collision, liability and medical payments coverage.
Comprehensive insurance covers non-collision claims such as theft or fire, as well as hitting an animal or suffering a hit from a fallen tree during a storm.
Gap insurance
If you lease or finance your vehicle, gap insurance is a smart buy. This endorsement helps pay the difference between your car’s value and your remaining loan balance if the vehicle is totaled or stolen. Usually, you need to have a full coverage policy to get gap insurance.
However, remember that gap insurance won’t pay for a new car. If your vehicle gets stolen, it will only help you repay your outstanding loan.
New car replacement insurance
New car replacement is another optional policy that many auto insurance carriers sell. If your car gets stolen or totaled, this policy gives you money to replace your vehicle with one of a similar make and model, and your payout will be adjusted for depreciation.
The downside to new car replacement is that there can be eligibility requirements. For example, some insurers only offer this to drivers who are the first owner or have a one- or two-year-old car.
Are stolen personal items covered?
No, car insurance policies will cover stolen personal items unless your carrier offers a special endorsement. You could file a claim through your renters or homeowners insurance policy to cover your stolen belongings.
How to file a theft claim
Stolen car insurance claims work similarly to regular accident or physical damage claims. The biggest difference is that a stolen car claim might require additional documentation.
First, you should call your insurance company immediately and notify the police. The agent or claim representative will walk you through the process and tell you what information you need to share.
Before you file the claim, you should have a copy of the police report handy. The insurance company will want to verify when and where the theft occurred. Remember that if you didn’t call the police immediately, your insurance company might deny your car insurance theft claim.
After the claim has been settled, you will receive your payout, which you can use to purchase a new vehicle similar to the one you had before.
How much will my insurance company pay after a theft claim?
The maximum comprehensive coverage payout is generally the vehicle’s actual cash value (ACV), minus your comprehensive deductible.
Insurance companies calculate ACV using the replacement cost value of your car minus depreciation. It accounts for your vehicle’s mileage, accident history, make, model, year and overall condition inside and outside. Your deductible is how much you must pay before your insurer pays out on a claim.
My car was found after the claim was filed — now what?
If you’re one of the lucky few who can recover their car after it gets stolen, it can complicate the claim process. It depends on whether you’ve received the payout and bought a new vehicle and what condition the car is in when it’s found.
Let’s say your car is recovered and is in bad shape. Your car insurance company would likely pay for the damages, but if the repair costs exceed the car’s ACV, they may declare it a total loss and give you a payout.
But if the claim has already been settled and you’re driving a brand-new car, your insurance company might take ownership of the recovered vehicle. If you received the payout but haven’t purchased a new car, you may be able to return the money and continue driving your old car once it’s fixed.
Typically, this situation is handled case-by-case with your insurance carrier. When you file a theft claim, it’s a good idea to ask what might happen if your car is recovered. That way, there are no surprises if your vehicle is found.
FAQ: Car theft
Does gap insurance cover stolen cars?
Gap insurance pays the difference between what you owe on your vehicle and how much it’s worth. It won’t provide a separate payout you can use to replace your car like comprehensive insurance would.
Does theft insurance cover aftermarket parts?
In most cases, auto theft insurance won’t cover aftermarket or custom parts installed in your vehicle. For example, if your car gets stolen a few weeks after you install a new stereo system, it’s unlikely that your insurer will adjust your payout to reflect the recent upgrade.
How can I prevent vehicle theft?
There are many ways to prevent your car from getting stolen:
Park in well-lit areas.
- Close and lock all windows and doors when you park your car.
- Hide valuables.
- Don’t leave your keys in the vehicle.
- Never leave a running vehicle unattended.
- If your vehicle has an immobilizer, use your key fob to lock it.
- Don’t leave your keys in the vehicle when you fill up at the gas station.
- Purchase an anti-theft system if your car doesn’t have one.
Resources & Methodology
Sources
NHTSA. “Consumer Alert: NHTSA Reminds Drivers to Safeguard Their Vehicles.” Accessed July 2024.
Ask the Insurance Expert
Laura Longero
Executive Editor
Laura is an award-winning editor with experience in content and communications covering auto insurance and personal finance. She has written for several media outlets, including the USA Today Network. She most recently worked in the public sector for the Nevada Department of Transportation.
Ask the Insurance Expert
John McCormick
Editorial Director
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
Ask the Insurance Expert
Leslie Kasperowicz
Managing Editor
Leslie Kasperowicz is an insurance educator and content creation professional with nearly two decades of experience first directly in the insurance industry at Farmers Insurance and then as a writer, researcher, and educator for insurance shoppers writing for sites like ExpertInsuranceReviews.com and InsuranceHotline.com and managing content, now at CarInsurance.com.
Ask the Insurance Expert
Nupur Gambhir
Managing Editor
Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service.