Does Car Insurance Cover Theft?

Matthew Lloyd
January 11, 2021
Matthew Lloyd

Does Car Insurance Cover Theft? Criminal activities involving vehicles lead to a loss of $6.4 billion annually. In 2019, vehicle theft resulted in an average loss of $8,886 per incident. In the same year, 721,885 reports of stolen vehicles were recorded in the United States. When your car is stolen, one of the first things that pop into your head is your auto insurance provider.

Insurance policies are critical in these unfortunate situations. With a rise in theft rates in some areas, you need to ensure you are protected. The problem, however, is that many people do not understand how auto insurance works. In this post, we look at whether or not theft will be covered by your policy.

Types of Insurance Policies

Start by understanding the different types of policies that can be used to get cover when you are a victim of criminal activities. Comprehensive coverage is generally preferred for vehicle owners. This type of cover provides protection against a large number of events that may affect your vehicle. At the same time, comprehensive car insurance does not always cover everything lost.

Liability insurance is an option that some people take out in addition to their existing insurance. This type of insurance does not directly relate to your car. Instead, it provides protection for you in case of an accident. In some cases, property damage may be covered too.

Apart from these, there are also renter’s insurance, as well as homeowner’s insurance. These are often considered additional policies that are taken out apart from primary insurance policies.

Car Insurance and Theft

Knowing what is covered before signing up for an insurance policy is important. This ensures you understand when an event will be covered and when you will be expected to cover costs on your side.

It is also important to consider various scenarios that may arise and look at how a vehicle insurance policy may provide coverage in these situations.

Vehicle Damage

After doing some essential shopping, the last thing you want is to walk up to your car, only to find that the window is broken. A quick look into your car and you notice the ignition is damaged and perhaps the lock on your door is broken too. These are common problems faced when a break-in occurs.

The good news in these scenarios is that the damage is likely to be covered. In particular, if you have comprehensive vehicle coverage, then you should be able to claim the cost suffered for the damage from your insurance provider.

It is important to ask your provider what exactly is covered. Some may have strict rules in terms of what type of damage will be covered on the policy. You may also have a fee to pay in from your side – the insurance provider will be able to tell you whether or not you have pay-ins once you submit a claim.

Stolen Vehicles

Break-ins are only some of the problems we face today. A stolen car can be a complete disaster, as you rely on your vehicle to transit between work, home, and every stop needed for daily activities. With this in mind, knowing whether or not a stolen vehicle is covered by your insurance policy should be a priority.

Comprehensive cover will usually provide coverage for the value of your vehicle. You will be provided an opportunity to obtain a vehicle at a similar value, at the expense of the policy provider.

Some policies use a degradation system, so make sure you keep on top of the current value at all times.

Stolen Personal Belongings

When personal belongings in your car are stolen during a break-in, your regular comprehensive cover is unlikely to cover the costs. This is because vehicle damage or a stolen vehicle are the primary factors included with comprehensive insurance.

If you need cover for your personal belongings, then you should speak to your homeowner insurance provider. These policies will usually be able to provide you with cover for these smaller items, such as laptops and your smartphone.

Choosing the Right Auto Insurance Policy

When it comes to taking out an auto insurance policy, be sure that you are trusting the right company. There are a few different providers in the US. Some of these offer superior services compared to others. Doing your research first is important, as this allows you to make an informed decision.

Using a quote comparison service is always a good way to find the right car insurance coverage for you. These services are able to help you find multiple quotations for the cover you need. You can review multiple companies and see how much the same policy would cost at each one.

With these quotations sent directly to you, there is a bigger chance that you will find a more trustworthy provider. provides comprehensive quote comparison services, allowing you to get the lowest rates for your needs. You can specify your exact needs and get a quote that matches your specific insurance requirements, lifestyle, and other specifications.


Insurance is a critical service in the modern era, ensuring you are covered against common events, such as vehicle accidents. Theft, however, is sometimes a vague topic. With comprehensive coverage, you do get protection against damage dealt to your vehicle in the case of break-in or theft. However, additional policies are required for personal belongings lost or damaged during the commission of a break-in.