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Yes, car insurance covers theft if you have comprehensive coverage, which is optional. Comprehensive auto insurance can help replace your car if it’s stolen or repair damage to your car resulting from break-ins or vandalism.
It is important to note that normal liability car insurance won’t cover theft because it only protects other drivers from bodily injury and property damage resulting from an accident you cause.
What Insurance Covers If Your Car Is Stolen
- Your insurance company will pay your car’s depreciated value, or actual cash value (ACV), minus your deductible, if you have comprehensive coverage.
- If your vehicle is financed and you owe more than your car is worth, gap insurance will cover the difference between your car’s actual value and the balance owed.
- If you need help paying for transportation costs related to your car being stolen, rental reimbursement coverage will pay for a rental vehicle.
Car Insurance & Theft of Personal Items
Although comprehensive coverage will apply if your vehicle is stolen, no type of car insurance will cover theft of your personal items from your vehicle. Your phone, laptop, or other valuables should be listed on your homeowners or renters insurance policy, even if you often leave them in your car.
Next Steps
If your car is stolen, file a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you’ll also need a police report to file a claim with your insurance provider. After you’ve filed a report, you should contact your insurer to start the claims process
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If someone else is driving your car and gets in an accident, your car insurance will likely cover any resulting damage. Car insurance generally follows the car instead of the driver, so the car owner's insurance will cover the crash, even if someone else is driving. On the other hand, if your car is taken without permission or the driver is not licensed, the driver is responsible.
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