Does Car Insurance Cover a Stolen Car?

Having your car stolen can be stressful enough without wondering whether your insurance will help pay for the loss. Car insurance can cover a stolen vehicle, but only if your policy includes the right type of coverage. Here’s what drivers should know about theft coverage and what happens if a stolen vehicle is recovered.

What Type of Car Insurance Covers Theft?

Comprehensive coverage is the portion of an auto insurance policy that typically covers vehicle theft. Unlike collision coverage, which generally applies when your vehicle is damaged in a crash, comprehensive insurance protects against certain non-collision losses.

Comprehensive coverage may include:

• Vehicle theft
• Vandalism
• Fire
• Hail and severe weather
• Falling objects
• Certain animal-related damage

Does Liability Insurance Cover a Stolen Car?

No. Liability insurance is designed to help pay for injuries or property damage you cause to others in a covered accident. It does not pay to replace your own vehicle if it is stolen. If you carry liability-only insurance without comprehensive coverage, your policy generally will not reimburse you for the stolen vehicle.

How Much Does Insurance Pay If Your Car Is Stolen?

If your stolen vehicle isn't recovered, comprehensive insurance will generally pay based on the vehicle's actual cash value at the time of the theft, minus your deductible, subject to the terms and limits of your policy. Actual cash value takes factors such as the vehicle's age, condition, mileage, and depreciation into account, so the settlement may be less than what you originally paid for the car.

What If Your Stolen Car Is Recovered?

If police recover your vehicle, your insurance company will typically assess its condition and determine whether it can be repaired or should be considered a total loss. Comprehensive coverage may help pay for covered theft-related damage, such as broken windows, damaged locks, or other damage caused while the vehicle was missing, minus your deductible.

Does Car Insurance Cover Items Stolen From Inside the Car?

Comprehensive auto insurance generally covers the vehicle itself and permanently installed equipment, but it typically doesn't cover personal belongings left inside. Items such as a laptop, phone, purse, clothing, or other personal property may instead be covered by your homeowners or renters insurance, depending on your policy and the circumstances.

What If You Still Owe Money on a Stolen Car?

If you're financing or leasing your vehicle, an insurance settlement is generally applied toward the amount you owe. However, the vehicle's actual cash value could be less than your remaining loan or lease balance. Gap insurance may help cover some or all of that difference in a covered total loss, depending on the terms of the policy.

What Should You Do If Your Car Is Stolen?

Act quickly if you discover that your vehicle is missing. Contact the police first to report the theft and obtain a police report, then notify your insurance company as soon as possible.



Be prepared to provide information such as:

• Vehicle make, model, year, and color
• License plate number
• Vehicle identification number (VIN)
• Location and approximate time of the theft
• Keys you still have in your possession
• Personal items that were inside the vehicle 

Does Comprehensive Coverage Make Sense for Your Car?

Comprehensive coverage isn't legally required in the same way that certain liability coverages are, although a lender or leasing company may require it while you're financing or leasing a vehicle. Whether it makes sense to carry comprehensive coverage on a vehicle you own outright depends on factors such as its current value, your deductible, the cost of coverage, and how comfortably you could replace the vehicle yourself after a theft or other covered loss.

Make Sure Your Vehicle Is Protected Before It Goes Missing

You don't want to discover a gap in your auto insurance after your car has already been stolen. Wentworth Insurance is a family-owned independent insurance agency with more than 25 years of experience, over 60 licensed insurance professionals, and clients across 48 states. Because we work with multiple trusted insurance carriers, our team can help you compare auto insurance options and determine whether your current policy provides the protection you expect. Contact Wentworth Insurance today to review your auto insurance coverage and make sure you're prepared for more than just accidents.