Does Car Insurance Cover Theft?

Car insurance covers theft only if you have comprehensive coverage, which includes the following:

• Stolen car parts, including tire and catalytic converter theft
• Break-ins
• Stolen cars

Comprehensive insurance does not cover certain items in thefts.

• Vehicle upgrades: If you installed any aftermarket products into your car, like a stereo system, comprehensive coverage won’t cover them. Rather, you would need custom parts and equipment coverage.
• Theft of personal items: Comprehensive coverage only applies to your car and its originally manufactured parts, so if the thieves also take your laptop, your car insurance provider won’t reimburse you for it. Rather, you’d need off-premises coverage from either homeowners or renters insurance.

What Is It?

Comprehensive coverage is an optional type of auto insurance coverage that covers damages to your car from events other than collisions, including auto theft, vandalism, fires, floods, hail, sinkholes, and other natural disasters. It is the only type of car insurance coverage that applies to auto theft.

Who Needs It?

You need comprehensive coverage if you have a new car, even if it’s broken down or in storage. If you’re planning on driving it again, you want to be covered for any damages that occur.

However, if you have an older car, comprehensive coverage probably isn’t worth it. Older cars have lower AMVs, so if your car is damaged, it’s likely that the repairs will cost more than the AMV, which means the car would be a total loss. If you have an older car, it’s okay to drop comprehensive coverage.

Is It Worth It?

Comprehensive coverage is worth it for any new car that you plan on driving either currently or in the future. If your car is stolen, vandalized, or otherwise damaged in a weather-related incident, you’ll be reimbursed for either the cost of the repairs or your car’s AMV. Otherwise, you’d have to pay for these damages out of pocket. Read more in our car insurance FAQs.

Liability coverage and comprehensive coverage are not the same. While liability coverage encompasses property damage coverage and bodily injury coverage, comprehensive coverage only covers damages from events other than collisions. See more similarities and differences below.

Does Liability Insurance Cover Stolen Cars?

Unlike comprehensive coverage, liability insurance does not cover stolen cars. Rather, it only covers third parties’ injuries and property damages in accidents you caused.

While we think comprehensive coverage is essential for any new car, other types of insurance could come in handy if your car is stolen.

• Homeowners or renters insurance: To protect items in your car, you’ll need off-premises coverage from a home or renters insurance policy. Unfortunately, comprehensive coverage only applies to the car and its parts, not to any personal property in the car.
• Gap coverage: Gap coverage fills the gap between your car’s ACV and what you owe on it. Gap coverage is a requirement for leased or loaned vehicles, along with comprehensive coverage.
• Rental car coverage: If your car is being repaired under a covered claim or if you haven’t bought a new replacement yet, rental car coverage will pay for your rental car in the interim.

Having comprehensive coverage doesn’t mean you want to be a victim of car theft. Here’s how to avoid it, or at least reduce its likelihood:

1. Use tracking devices. Install anti-theft devices such as gearshift column or steering wheel locks, horn alarms, vehicle recovery systems, or computer chips in ignition keys, which disable the flow of electricity or fuel to the engine⁹. Some insurers even offer discounts for installing these types of devices:
   • Nationwide
   • Good2Go
   • GEICO
   • Dairyland
   • Amica Mutual
   • Allstate
   • AARP
   • AAA
2. Watch where you park. Whenever possible, park in garages. If you have to park in public, choose well-lit, populated, open areas far away from dumpsters, trucks, or anything else that obstructs visibility. Avoid loiterers and dark alleyways if you can.
3. Lock up. In addition to locking your car, remember to lock your home’s garage or gate.
4. Light it up. Use motion-activated lights to deter burglars.

Even the most careful driver can’t completely prevent car theft. Here’s what to do if your car is stolen:

1. Confirm it’s been stolen. Make sure your car was actually stolen and wasn’t towed, repossessed, or impounded.
2. Call the police. If it was stolen, call 911. File a police report for your claim.
3. Try to recover it. Use your tracking devices to try to locate the car yourself, if you have any installed.
4. File a claim. File a claim with your insurance provider.

The best-case scenario in a vehicle theft is that you recover your car. In that case, take the following actions:

1. Contact your insurance company. Let your insurance company know that you have found the car.
2. File insurance claims for damages. If your car has any damages that weren’t there before, file claims for them.

Much like auto theft, car insurance only covers vandalism if you have comprehensive auto insurance coverage. If you lack comprehensive coverage, you won’t get reimbursed for the repairs needed from vandalism.

Ideally, you have comprehensive coverage for car theft, because according to our car theft research, auto theft increased by 10 percent from 2019 to 2020, with 246 car thefts per 100,000 inhabitants. Don’t let your car be next.