Does auto insurance cover vehicle theft? (Can’t-Miss Details for 2024)

Does auto insurance cover theft? While most states require insurance, you’ll need more than just your state’s minimum coverage to protect your car from theft. Vehicle theft is only covered by comprehensive auto insurance.

Learn more about what coverage you need to make sure you won’t have to pay for a stolen car out of your own pocket. Then, compare quotes with as many companies as possible to find car theft coverage that fits your budget.

Auto Insurance That Covers Vehicle Theft

When it comes to does car insurance cover theft, there is only one type of insurance that covers car theft and related damage — comprehensive coverage. Comprehensive insurance will replace your car if it’s unrecoverable or pay for damage sustained during a break-in.

Break-in damage includes broken windows, catalytic converter theft, and vandalism. You’ll have to check with an insurance representative to see exactly how much damage is covered during a break-in, but most comprehensive policies are thorough.

If you need to make a comprehensive claim because your car was stolen, your insurance will reimburse you for your vehicle’s actual cash value (ACV) rather than the amount you paid for it. This can be a problem when you have a new car — what do you do if your vehicle’s ACV is less than you owe on your loan?

Gap insurance coverage helps in this situation, as it pays the difference between your car’s ACV and what you still owe on your loan. While it doesn’t specifically help pay for a stolen car, it does help pay off your loan after your vehicle is stolen.

However, if you’re eligible for new car replacement insurance, it will completely replace your car with a similar vehicle if yours is stolen.

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Cost of Comprehensive Insurance Coverage

Comprehensive insurance is usually an excellent value because rates are relatively low, and it covers a lot of damage. Aside from car theft and vandalism, comprehensive insurance covers damage from animal contact, weather, fire, and floods.  

You may be wondering, “Will hitting a deer raise my auto insurance rates?” It’s important to find out how certain accidents increase the amount you will pay for comprehensive coverage. 

Like other types of insurance, comprehensive rates vary by your unique circumstances. However, you can get an idea of how much comprehensive insurance might cost you by looking at the average price of comprehensive insurance at different companies.

Comprehensive Auto Insurance Monthly Rates by Provider

Even though full coverage is higher than liability coverage, comprehensive insurance might make up as little as $8 of the total annual price. The protection comprehensive insurance offers is well worth the price, especially if you live in an area with high car theft rates.

Car Insurance for Personal Item Theft

Now you know that comprehensive insurance will pay for your car if it’s stolen or broken into, but what about your personal items? Does car insurance cover theft of belongings? Are broken car windows covered by my auto insurance?

Unfortunately, your belongings are not covered by your car insurance. Your comprehensive car insurance should cover if a thief smashes a car window, but it will not replace a laptop or phone that got snatched. 

The good news is that your homeowners or renters insurance usually covers the theft of personal items from your car, even if you weren’t parked at home.

Auto Insurance Coverages That Won’t Cover Theft

You can purchase many types of insurance to increase the protection and value of your policy. While they offer valuable coverage, the following types of insurance do not cover car theft:

• Liability auto insurance
• Collision auto insurance
• Uninsured motorist coverage (UIM) auto insurance
• Personal injury protection insurance and medical payments
• Roadside assistance

Although your homeowners or renters insurance policy covers stolen items, it will not cover stolen cars. Even if your vehicle is taken from your garage, you’ll need comprehensive insurance to pay for it.

What to Do if Your Vehicle Gets Stolen

The first thing you should do if you discover your car has been stolen is to call the police. Officers will collect basic information about your vehicle, like your license plate number, your car’s make and model, what color it is, and any other identifiable markings.

After you contact the police, your next step should be to call your insurance company. An insurance representative will check if you’re covered and help you start a claim. If you had personal items in your vehicle, you should also contact your homeowners or renters insurance company.

Being the victim of car theft is stressful, but you should handle it immediately. The chance of your car being recovered increases the sooner you contact the police and your claim will be resolved faster.

When your claim is resolved, you’ll receive a check for your car’s ACV minus your comprehensive auto insurance deductible.

Tips to Avoid Car Theft

While there’s nothing you can do to stop a determined thief, there are ways you can lower the chances that your car will be targeted.

Consider following these rules to keep your vehicle where it belongs:

• Lock Car Doors: Even if you live in a safe neighborhood, leaving your doors unlocked increases your chances of losing your car. You should get in the habit of always locking your doors, no matter how long you’ll be out of your vehicle.
• Park in Safe Spots: The ideal location to park your car is in a garage. If that’s not possible, look for well-lit spots that are not isolated.
• Don’t Leave Keys: Many drivers like to hide a key under the floor mats or behind a visor, but that makes it easier for car thieves to take your car.
• Keep Windows Closed: When you leave your windows open while parked, you’re giving thieves an easy chance to steal your belongings.
• Install Anti-Theft Devices: There is a lot of technology that can help prevent theft. GPS trackers, engine kill switches, and even audible alarms can deter thieves. There are even companies specializing in anti-theft technology like LoJack (Read More: Does LoJack lower auto insurance?).

These tips can help lower the chances of your car being stolen, but you should always be aware of your surroundings. Don’t leave your vehicle anywhere you feel isn’t safe, and make sure you always take your valuables with you.

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Protect Your Car From Theft With the Best Policy

With car theft rates higher than they’ve been in two decades, now is an excellent time to get comprehensive insurance if you don’t already have it. Car theft insurance coverage will increase the cost of your insurance, but it could save you thousands. Now that you know that comprehensive insurance does cover theft, your next step should be to compare comprehensive quotes (Learn More: How to Get Multiple Auto Insurance Quotes). 

Finding affordable car theft insurance is relatively easy, but you should always shop around to ensure you get the best price. Enter your ZIP code in our free quote tool to find the best deal on full coverage insurance. 

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