Does car insurance cover theft?

Yes! If you have full coverage of your policy, car insurance can help pay for a stolen vehicle if it is not recovered. Depending on your insurance policy, you may also be covered for non-standard parts, paint, rims and other aftermarket add-ons. Personal property (cell phones, laptops, tools, etc.) stolen from your car will not be covered by your auto insurance, but you will likely be covered under your home, tenant or condo policy.

How do insurers cover car theft?

Stolen vehicles are protected with comprehensive protection

If someone steals your vehicle and it is not recovered, your insurer will cut you a check for the current value of your car if you are fully insured. If your vehicle is recovered but it is damaged in theft, your vehicle should be repaired with a comprehensive warranty. In both situations, your total deduction would apply.

A person breaking into a car

A common misconception is that you must have “full car insurance” to be insured against car theft. While there is technically no full coverage, many lenders define full coverage as covering both comprehensive and conflict-of-laws coverage. However, depending on the insurer, full coverage may be purchased separately from collision coverage; usually costs less and provides protection against theft.

Protection costs only $ 11 per month on average, it is highly recommended for protection and peace of mind in the event of vehicle theft. The comprehensive service also covers vandalism and glass breakage, which may coincide with theft.
Vehicle upgrades are protected by custom parts and hardware protection.
Most auto policies do not cover the replacement or repair of spare parts, custom parts, and vehicle modifications beyond a certain amount. However, non-standard parts and equipment (CPE) insurance – available in most insurers at an additional cost – may cover stolen parts or equipment. For example, if newly added 24 inch rims are stolen, you will likely need CPE insurance to insure them.


You spent $ 900 on a custom paint job and $ 800 on new stereos that need to be replaced due to being damaged when stolen. In addition to the $ 1,000 you can withdraw, you’ll need an additional $ 700 CPE to fully coat the new paintwork and replace your new stereo.
Cover the gap: for loan and lease payments.

If your car is stolen, the insurer will pay you the Actual Cash Value (ACV) of the vehicle less your excess. It is possible that the ACV amount would not be enough to pay off the loan or lease due to factors such as interest and depreciation. If the amount you owe is greater than the value of your vehicle, consider purchasing a gap that can cover a percentage of the difference between the balance owed and the ACV. We call this “loan/lease payment” insurance and on average it only costs around $ 5 per month.
Does car insurance cover the theft of personal belongings from your car?

No, your car insurance does not cover personal belongings stolen from your vehicles, such as a laptop, briefcase or mobile phone. However, a tenant or homeowner policy may cover personal belongings stolen from your car, even if it was stolen while the car was not on your property.
Insurance for electronic devices may also cover stolen cell phones, laptops, and other devices of your choice.
Does liability insurance cover a stolen car?

Not. Liability coverage will cover you if you cause injury or damage to someone else’s property, but does not cover a stolen vehicle. Also, collision insurance will not protect you from theft. Comprehensive is the only protection that can cover car theft or damage to the car caused by theft or burglary.
What to do if the car is stolen

When you discover that your car is not where you parked it.

You can feel like a real nightmare. Before reporting the theft, exclude these possibilities:

Has it been illegally parked and towed away?
If you are behind on payments, has it been recovered?
Has it been confiscated or investigated by the creditor?
If your car is indeed stolen, report a report immediately. Remember that having a tracking device in your vehicle can help the police recover it. After filing a report to the police, contact your insurance company immediately to file a claim for car theft.
What happens when your car is stolen and recovered?

If your vehicle has been stolen and recovered, inform your insurance company immediately. If the car has been damaged, comprehensive insurance coverage can cover the cost of the repair, up to any limit and after deducting an excess.

Can I get a theft discount?

Some insurers offer discounts on vehicles with manual and passive alarms or tracking devices. You can even get a discount if your vehicle identification number is engraved on your window or door glass. In some states, some insurers offer a discount on theft. Eligibility varies by state and requires comprehensive insurance.

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