Does car insurance cover theft?

Quick insights

• Car theft is typically covered under comprehensive insurance policies.
• Car insurance can also help replace stolen car parts, not just entire vehicles.
• If your car is stolen, your first steps should be to file a police report and submit a claim to your insurance company.

Hopefully you've arrived on this page out of curiosity, not necessity. When it comes to auto theft, best case scenario might be getting your car or stolen parts back virtually unscathed. If not, certain car insurance policies can help.

Does car insurance cover a stolen car?

A comprehensive car insurance policy is known to cover a wide range of situations, including theft. Comprehensive doesn’t exactly mean “everything,” but a comprehensive car insurance policy will normally cover various types of damage and theft.

If your car doesn’t have comprehensive coverage, adding it to your policy will probably increase your insurance cost. However, this coverage might help you out when your car (and you) are having a bad day.

How does insurance cover a stolen car?

Comprehensive coverage may provide payout for a stolen car differently depending on the situation:

• The vehicle isn’t recovered: A comprehensive insurance policy might issue a check for the value it is insured for if the vehicle isn’t recovered following theft. Keep in mind, if the car has an outstanding loan on it, part or all of that check may go to the bank.
• Your vehicle is recovered: Your policy might cover damage that occurred while the vehicle was missing, along with a variety of stolen car parts. That could include aftermarket additions, broken windows and mechanical repairs, to name a few.
• Personal items are stolen from the vehicle: Personal property stolen from your car usually isn’t covered by car insurance, whether or not the car itself was stolen.

To open a claim for a stolen car, most insurers will require a police report, which authorities can provide after you discuss your situation with them. While providing the police report is important, your insurer may also ask you about the vehicle and situation while opening a claim. You’ll probably have discussions with both parties for some time before an insurance claim for a stolen car can be closed.

Is catalytic converter theft covered by insurance?

Comprehensive coverage can help replace stolen car parts, not just stolen cars. The catalytic converter can be a target of theft because there are valuable metals in it: platinum, palladium and rhodium. While a car can run without a catalytic converter, you may receive a fine for driving a car that’s missing the part.

What to do if your car is stolen

Your first step after noticing your car is stolen should be to contact your local police, who can file a report and investigate the theft. Provide the police report to your car insurance company and follow any instructions it provides. The company may ask its own questions about the theft and gather information about the vehicle to help with the claims process.

What happens if your car is not recovered?

If police are unable to recover your vehicle, you may receive a check for the value of a stolen car that is covered under a comprehensive policy. The insurer will determine the car’s value and may subtract your deductible from the check issued for the stolen vehicle.

What happens if your car is stolen and then recovered?

If authorities recover a stolen car, you’ll have to work with them to reobtain your vehicle. Let your insurance company know the vehicle was recovered as soon as you can, as well. Once your car is back in your possession, inspect the vehicle for damage. You may need to report any damage or parts found to be stolen.

How to prevent car theft

Anti-theft technology has been advancing for years. Basic measures like door locks and window locks have advanced to sophisticated alarms and keyless ignitions. You can still purchase physical devices, too, such as a steering-wheel lock.

Anti-theft technology

Despite advancements, most anti-theft tech requires a vehicle to be locked to activate the system. That’s arguably the top tip for preventing theft: Lock your car.

Common antitheft technologies include:

• Audible and visual alarms: These can discourage theft by drawing attention to the vehicle. The horn will sound and lights will blink, which is hard to ignore and can prevent unauthorized use.
• Immobilizing devices: These range from steering-wheel locks to advanced ignition systems that can detect hotwiring. In short, these systems stop a car from running, which can prevent theft. Modern vehicles can detect when a key is missing and take preventative measures.
• Recovery systems: Vehicles might also come with these systems that signal a vehicle’s location. The car might have to be on to be located, but the system will vary from car to car.

Getting the latest and greatest anti-theft tech in new cars today is often as simple as taking your vehicle to a dealership and downloading new software.

Common tips

Here’s a handful of tips that might stop your vehicle from being a target of theft:

• Park in well-lit areas. 
• Conceal valuables that are visible through the windows from outside the car.
• Don’t keep your name or address on your keychain which could give a thief a path to your house and car if you lose your keys.
• Always turn off the car and take the keys.

In summary

Having your car stolen is a serious situation that requires you work with both police and your insurance company. Comprehensive car insurance typically covers the theft of an entire vehicle or parts of it. Hopefully, that helps get you back on the road after what’s sure to be a difficult time.