Does Car Insurance Cover Theft? Basics to Know Before Filing a Claim

Generally, car insurance covers theft but only if the policy's benefits say so. That's why having comprehensive coverage matters more than most consumers initially assume.

Whether or not the driver was at fault, comprehensive insurance will cover the loss unless the agreement's text specifies exclusions for theft. For instance, a policy may not include the value of a new stereo sound system in the payout if the benefits sheet doesn't clearly state it.

When a car is stolen, a reliable, trustworthy car insurance company will eventually offer a fair value in return. But the bottom line is this: without comprehensive coverage in place, it's unlikely that the policy will cover any additional financial losses (e.g., stolen personal belongings like smartphones left in the vehicle at the time of the crime).

Drivers might misconstrue what their policies will and won't cover until it's too late to do anything about the situation. At that point, the only option is to take the financial gut-punch and learn from the experience.

To prevent that from happening, the goal of this article is to go through the basics of car insurance and how it ties into auto theft, making filing claims faster and easier in the end.

Does liability coverage include auto theft?

The fact of the matter is this: liability coverage on its own won't cover auto theft. It will cover damages from accidents and the cost of inflicting bodily injuries but not auto thievery.

No matter what, an insurance policy's language matters tremendously in the aftermath of auto theft. It's a great mistake to presume that damages are covered.

A car insurance company with a solid reputation in the industry knows how financially challenging it can be to recover from vehicle theft. The catch is that drivers need a comprehensive policy that includes all potential theft-related damages, not a liability policy.

No one wants to recover from an auto theft; most just can't afford to buy another vehicle without the insurance company's help. The takeaway is that liability insurance doesn't suffice when it comes to auto theft.

What happens to insurance coverage after a car is stolen?

What happens to insurance coverage in the aftermath of theft depends on the type of policy in place. If the policy is paid and in good standing, the process will go much smoother. The whole idea of car insurance is to provide support when drivers need it most, so dealing with auto theft is a common scenario.

A note: if a car is stolen, the law requires that the vehicle's owner notify the authorities and immediately report the incident.

There's no one-size-fits-all answer to the question of what to do after being victimized.

But the main thing to remember is that without a police report on file, insurance companies won't accurately value the car or anything left inside of it.

The general rule of thumb is that an insurance carrier can't cancel coverage simply because a vehicle is stolen. What will happen is that the policyholder will need to pay a deductible before an insurance agent can begin processing the proper paperwork.

Without a doubt, coping with the aftermath of auto theft is emotionally challenging, mostly if the vehicle contained sentimental personal belongings. Still, there is hope if drivers have comprehensive insurance instead of standard liability coverage.

What about other damages that happen during the crime?

Typically, if someone is in good standing with a comprehensive policy, any damages that occur during auto theft are included. Damages could be anything from a few broken windows to wholesale vandalism of the vehicle's exterior. A broken windshield, in particular, is an expensive fix not many drivers can afford out-of-pocket, so that's the benefit of having adequate car insurance.

Another scenario might be when a vehicle is, indeed, stolen but recovered at a later date – with significant damages all over the car. After all, what good are a vehicle with no tires and no fiberglass body? The answer is that it's not worth much to anybody, especially the insurance company who'll likely "total" the car and pay for the damages.

When it comes to theft damages, the takeaway is this: most liability insurance policies will cover these expenses but not the theft of the vehicle or anything inside of it.

How to find the best insurance to cover auto theft

Finding the best rates on car insurance that'll cover car theft take time without an easy way to sort through dozens, if not hundreds, of offers online.

What is the best range of benefits for the price? Can liability insurance satisfy the minimum requirements?

Answering questions like these can be frustrating, so that's where the QuoteLab.com platform comes into the equation.

With QuoteLab.com, drivers have a one-of-a-kind resource to shop for and compare insurance rates. Best of all, they can see prices and benefits side-by-side, so there's no confusion when selecting a plan.

Click here to start searching for car insurance that'll include auto theft protection!