Car break-ins and theft happen a lot more often than you might think. Over the years, reported cases have significantly increased with a record-breaking 1,020,000 stolen vehicles reported in 2023 alone. With such worrying numbers, it’s no surprise that owners are looking for the best insurance policies that will protect them against car thieves.
Does Liability Insurance Cover Car Theft?
While most states require liability insurance for vehicle owners, it doesn’t cover a stolen car. Liability insurance covers the legal costs and payouts of the insured party when they injure someone else or damage their property. This will cover the costs of accidentally crashing into another vehicle, but it won’t protect you from car theft.
How Does Insurance Cover Stolen Vehicles?
If you’re worried about car theft, the type of insurance you need to get is auto comprehensive insurance. Your insurance provider will review your case, and you’ll be reimbursed according to your stolen vehicle’s ACV.
While auto comprehensive insurance covers several types of damages, it won’t protect you from certain scenarios. Here’s a table of other insurance policies and what they typically cover:
| Type of Insurance | What’s Covered |
|---|---|
| Auto Comprehensive Insurance | Stolen car Vandalism Damage to the vehicle during theft (e.g. broken windows and door locks) Stolen keys or keyfob Stolen auto parts (e.g. catalytic converter) |
| Property Insurance or Homeowners Insurance | Personal items inside your vehicle, such as phones, jewelry, and other valuables |
| Custom Parts and Equipment Coverage (CPE) | Car modifications Replacement and repair of aftermarket and custom parts |
| Gap Coverage | Remaining loan and lease payoffs of the stolen vehicle |
You don’t have to get every single insurance policy out there, but it certainly won’t hurt to have more protection, especially if you travel a lot.
How Does Comprehensive Insurance Cover a Stolen Car?
Depending on your insurer, you’ll have to file a claim and wait for them to investigate your case. Then, once they verify your claims, they’ll reimburse your stolen car according to the terms listed in your policy.
What Happens if Your Car Is Stolen and Never Found?
Insurance companies will reimburse you according to the coverage limit stated in your policy. This is usually based on your stolen vehicle’s ACV, which is determined after evaluating its depreciation, age, mileage, and other factors.
What Happens if Stolen Car Is Found After Insurance Payout?
If your stolen vehicle is recovered but you’ve already received compensation, your insurance company now has legal ownership over it. However, you can still get it back if you return the reimbursement money. Your insurer can also pay for the repairs of any damage due to the theft. You’ll receive up to the coverage limit minus your deductible.&
Keep in mind that insurance companies will have different ways of determining your stolen car’s value. Before you seal the deal, be sure to read and understand the fine print. Ask your insurer and clarify any questions about your coverage before signing the papers.
Will My Car Insurance Cover Stolen Parts?
That’ll depend on your insurance policy. If you have comprehensive coverage, then your insurer will pay for the replacement and repair of any stolen or damaged parts. However, if the repairs exceed your coverage limit after your deductible has been removed, you might have to pay out of pocket for the remaining fees.
If the stolen part was an upgraded sound system or custom rims, then comprehensive insurance might not cover it. Some insurers will only cover the replacement and repairs of aftermarket parts if you also buy their CPE policy.
What To Do When Your Car Is Stolen
As much as possible, try to stay calm. We know it’s a stressful situation, but you’ll need to keep a clear head to proceed with the following steps:
Evaluate the Situation
First, you have to make sure your car was actually stolen. Was it parked illegally, repossessed, or impounded?
File a Police Report
Police have a better chance of recovering your stolen vehicle if you report it immediately. Insurers also need a police report to investigate your claim.
File a Claim With Your Insurer
You can do this over the phone, online, or in person with your insurance agent. Insurance companies will usually wait before tagging a car as stolen in case it gets recovered, so it might take a while before your case moves forward.
What Happens if I Get My Car Back?
Almost 50% of stolen vehicles are recovered in the US, so don’t lose hope just yet. Here’s what to do if you do get your car back:
Inform Your Insurance Provider
Contact your insurance company as soon as possible. They’ll inspect your recovered car for any theft-related damages and cover the repair fees.
Pay the Impound Lot Fees
Stolen recovered cars are usually kept at an impound lot, where you’ll have to go to claim your vehicle. This can vary depending on your location, but you can expect to pay a base fee and an additional fee for every day your car is on the lot.
How To Prevent Car Theft
Car theft can happen to anybody, but that doesn’t mean you can’t protect yourself from thieves. Here are ways you can prevent car theft:
Don’t Forget Your Keys
Whenever you exit your vehicle, don’t forget to turn off your car and bring your keys with you.
Lock the Doors, Windows, and Trunk
Lock every possible entryway, so thieves won’t be able to enter your car easily.
Lock Your Steering Wheel
Some vehicles come with a security feature that allows drivers to lock their steering wheels, preventing thieves from hijacking the car.
Park in Safe Spaces
As much as possible, park in well-lit places with high foot traffic. Avoid parking in unmonitored spots where it’s dark. If you have to park on the street, turn the wheels toward the curb before turning off your engine. This will make it harder to tow away your vehicle.
Don’t Put Your Info on Your Keychain
If your keys get lost, the thieves can use the personal details written on the keychain to find your home and steal your vehicle.
Print Your VIN on Your Windows
A vehicle identification number (VIN) is a 17-character unique identifier that is given to a car upon production. It can be used to track the car’s production date, registrations, warranty claims, and other information.
Printing this on your car windows can make it harder for thieves to resell your vehicle.
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Any information provided on this Website is for informational purposes only and is not intended to replace consultation with a professional mechanic. The accuracy and timeliness of the information may change from the time of publication.
