Auto Theft: Am I Covered By Insurance?

Whether your insurance covers auto theft depends on the type of insurance you have. Comprehensive coverage will usually cover theft, as well as repair costs from break-in damages. Comprehensive coverage is optional, so you won't be covered if you only have the state-required coverages. Liability insurance, which covers bodily injury and property damage, does not cover auto theft. If your car is stolen, it's important to file a police report and an insurance claim as soon as possible.

Comprehensive coverage

It is important to note that comprehensive coverage will not cover personal property stolen from your car, such as a laptop, phone, or wallet. These items would likely be covered by a homeowners or renters insurance policy.

Stolen vehicle that's not recovered

If your car is stolen and not recovered, your insurance company will pay you the actual cash value of your car, minus your deductible. This is known as comprehensive coverage, and it is optional, so you will not be covered if you only have the state-required coverages.

Comprehensive coverage will pay out for almost anything besides an auto accident, including most car theft scenarios. It is the only coverage that can cover car theft or damage to your car caused by theft or break-in. It also covers vandalism, including broken windows or other damage resulting from a theft.

If your car is not recovered within 30 days, the insurance company will declare it a total loss and pay you its actual cash value. This is the price an identical car would bring on the open market. It is somewhat negotiable if you can find comparable values.

Your deductible will come out of the insurance settlement check, and so will anything owed to lienholders.

If your car is financed, you will still have to make your payments. Theft doesn't affect what you owe on your loan.

Stolen vehicle that's recovered

If your stolen vehicle is recovered, the next steps will depend on whether your insurance claim has already been paid or is still in progress. If your claim has already been paid, your insurance company will own the vehicle and will have the right to dispose of it as they see fit. They may sell it or send it to a scrap yard, for example. In some cases, your insurer may give you the option to buy it back, but it will likely come with a salvage title, which could hurt its value if you later choose to sell it.

If your claim is still in progress when your vehicle is recovered, the focus will shift to determining whether it was damaged and, if so, the level of repair needed to restore it. Your insurance company will inspect the vehicle to assess the extent of the damage and the cost of repairs. If the vehicle is fixable, you will receive a check to cover the cost of repairs. If the damage is too great, the vehicle could be declared a total loss, and your insurer can either cut you a check for the value of the vehicle or pay for you to buy a new replacement. They may also give you the option to buy it back with a salvage title.

In either case, any personal items inside the car when it was stolen remain your property. If items are missing when the car is recovered, they will typically be covered by your homeowner's insurance policy, not your auto insurance policy. You will need to file a claim with your homeowner's insurance company to be compensated for the loss.

Vandalism and theft of personal property

If you are a victim of vandalism or theft of personal property, it is important to understand what your insurance covers. Comprehensive car insurance covers vandalism and theft of your vehicle, including broken windows or other damage resulting from a break-in. However, it does not cover personal property inside your car. For that, you will need renters or homeowners insurance.

To file a claim for vandalism or theft, follow these steps:

• Take pictures of the damage.
• Call the police and file a report.
• Contact your insurance company and provide them with the police report and any other relevant information.
• Consider seeking professional assistance from a loss adjuster to help you navigate the complex insurance process and ensure you receive adequate compensation.

What to do if your car is stolen

It can be a stressful experience if your car is stolen, but there are steps you can take to help you through the situation. Here is a list of things to do if your car is stolen:

Contact the Police

Report the theft to the police as soon as possible. This gives you the best chance of finding your vehicle. Be prepared to provide the following information:

• Car make, model, year, and color.
• License plate number.
• Vehicle Identification Number (VIN).
• Where the car was parked and a description of the area.
• Approximate time the vehicle was stolen.
• Whether your car has a GPS system.

Call Your Car Insurance Company

After contacting the police, your next call should be to your auto insurer. Make sure to have a copy of your police report and any other relevant information, such as contact details for anyone who had access to the vehicle and the location of all car keys. Note that some insurers may require a police report before you can make a claim.

Contact Your Home or Renters Insurance Provider

If you had valuable items in your car, such as jewellery, laptops, or cell phones, your car insurance may not cover these losses. In this case, you will need to contact your home or renters insurance provider to file a separate claim for your stolen belongings.

Reach Out to Your Financial Institutions

If you have an auto loan or lease, be sure to contact your lender to report the theft. Also, check if you had any documents in your car that contain personal information, such as your vehicle registration. If so, consider setting up a temporary fraud alert on your credit records by contacting one of the major credit bureaus (Equifax, Experian, or TransUnion).

Prepare Yourself for Any Outcome

Insurers typically wait about 72 hours after the theft to process an auto claim in case the vehicle is recovered. During this time, you are responsible for arranging and paying for alternative transportation, unless you have rental reimbursement coverage. If your car is not recovered, your insurer will pay for the value of your car at the time it was stolen, minus any deductible.

Frequently asked questions