Does auto insurance cover car theft?

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Vehicle theft is becoming an increasing problem in the U.S. In 2023, according to the National Insurance Crime Bureau (NICB), more than one million vehicles were stolen. Vehicle theft rates have been rising nationally, with California and the District of Columbia accounting for more thefts than any other region. The NICB reports that thieves are becoming increasingly sophisticated in using advanced technology to bypass security systems such as keyless entry. This leads to a logical question: Does insurance cover stolen cars? In this guide, Bankrate’s insurance editorial team answers that question.

Does car insurance cover vehicle theft?

If you are wondering, does car insurance cover theft? The simple answer is “sometimes.” A basic policy that includes only liability insurance does not have coverage for theft, but if you have also included optional comprehensive coverage in your policy, you do have coverage for incidents other than accidents. This may include everything from vandalism and encounters with animals to car theft. 

Your comprehensive coverage will typically help pay to replace your stolen vehicle if the perpetrator is not found. That said, comprehensive coverage has a deductible that you will be responsible for paying out of pocket if you choose to file a claim for your stolen vehicle.

You may also consider purchasing gap insurance if you have a leased or financed vehicle. This coverage pays the difference between your loan amount and the depreciated value of your car, which is determined at the time of a claim. It may be a useful coverage if your vehicle is stolen and unrecoverable.

Does car insurance cover items stolen from your car?

The type of policy you have, the coverage you choose and your insurance company will determine if your car insurance will cover items stolen from your car. Typically, your comprehensive coverage covers permanently installed items if they are stolen from your car, such as:

• Radios
• TVs in the headrests
• Navigation system
• Custom wheels (additional limits may apply)
• Vehicle battery
• Catalytic converter

If you have aftermarket items installed in your car, like rims, a stereo or a custom paint job, you may want to consider custom parts and equipment coverage. Companies like Progressive offer this optional endorsement, but be prepared to provide details and receipts at the company’s request.

Items not permanently installed, like clothes, a laptop, a phone or a camera left in the vehicle, are not covered by your auto insurance, unless the company offers special coverage that you add to your policy before the incident occurs.

For example, Erie offers personal items coverage, which will pay up to $350 for personal items stolen from the vehicle. Without this type of coverage — which is rarely offered — your home or renters insurance policy would typically cover these items stolen from your vehicle, subject to that policy’s deductible. It’s worth noting that if someone damages your vehicle while breaking into it, like busting out a window to get to your personal items, damage to your vehicle would still be covered by comprehensive coverage in most scenarios.

What to do if you are a victim of theft

The claims process will look different for a stolen vehicle than stolen possessions, but in both cases, you’ll want to document the scene and file a police report. Here are some steps to take if you experience theft.

What to do if your vehicle has been stolen

The first thing you should do if your vehicle has been stolen is rule out any of these possible scenarios:

• Is it possible the vehicle was towed after being parked illegally?
• Could the car have been repossessed by a lienholder?
• Could the vehicle have been impounded for another reason?

If none of these scenarios is relevant, call the police and report the theft. Be prepared to provide vehicle information, such as the VIN, license plate number, identifying characteristics like existing damage and the color, make and model of the car. If you have it available, you will want the police report number and a copy of the report when you file a claim with your car insurance company.

When you file the claim, you should have the report information, details on where and when the vehicle was stolen and any tracking device information handy, like OnStar or LoJack. Tracking information should also be reported to the police to aid in vehicle recovery.

What to do if your personal items have been stolen

If you’ve had personal items stolen, you may want to contact your auto insurer to see if you have coverage. If not, you might need to contact your renters insurance or homeowners insurance to ask about applicable coverage. Remember, determining which policy would cover the claim depends on whether the stolen items were considered permanently installed or not, or if your auto insurance has extra personal property coverage built into your policy. You may need to file a claim with both your home or renters insurance and your car insurance if items were stolen and your vehicle was damaged in the incident.

You may want to compare your deductibles with the cost of item replacement and vehicle repair. If the cost to replace your items and repair your broken window, for example, is lower than or close to your deductibles, it may be most cost effective to pay out of pocket. One reason why it might make sense to forgo a claim is because insurers could increase your premium after you file one, regardless of whether you were at fault or not.

You may also want to discuss coverage limits with your home or renters insurance agent. Most property insurance policies have limitations depending on the items stolen, like jewelry or cameras. In cases where you have expensive items, considering scheduled personal property coverage may help you avoid coverage gaps if you need to file a claim in the future.

How to prevent car break-ins

There are ways to help prevent the risk of theft of your vehicle or personal items, whether the car is parked in your driveway or a parking lot. Besides not leaving items in plain sight (or in your car at all), here are some ways to prevent car theft:

• Park in well-lit areas or under a street light
• Park in a locked or security-manned garage
• Place a spotlight or motion-activated light over your driveway
• Buy a car with a vehicle recovery system or have one installed
• Photograph your car and record identifying details
• Install an audible or visible alarm device
• Use a steering wheel lock or other anti-theft device that physically prevents the car from being driven.
• Keep the doors locked at all times and activate the alarm using your key fob, if applicable
• Roll up windows and never leave the key or fob in or around the vehicle

Certain theft-prevention measures, like an anti-theft device or parking the vehicle in a locked garage, may also save you money on your car insurance policy. In addition to reducing the risk of filing a theft claim and increasing your premium, you may earn a discount for having these preventative measures. Ask your insurance agent or company what anti-theft discounts might be available to you.

Frequently asked questions

• What car insurance coverage types cover vehicle break-ins?
  

  Vehicle break-ins are generally covered by optional comprehensive coverage, which is part of a full coverage policy. Comprehensive is likely to cover the costs (after you pay your deductible) for theft or vandalism. This type of coverage also generally pays if items that are permanently installed in your car—such as a radio or security system—are stolen. If personal items that are not installed are stolen, however, you are more likely to have coverage through your home or renters insurance. This might include items such as a purse or pocketbook, clothing or a laptop computer or cellphone. This coverage is also likely to include a deductible, which will probably impact the amount you receive if your claim is successful.

• Will filing a claim for car theft increase my insurance premium?
  

  It might. Filing a claim of any kind with your insurer could lead to an increase in your premium, based on your carrier’s policies. This may even be true if you are not at fault in any way. It’s common practice for insurance companies to increase the premium after a claim when the next renewal time comes up, which may make it a good time to shop around for a new policy and ask for quotes from other insurers. Keep in mind, however, that every insurer weighs claims differently, so you may only receive a small increase—or none at all. In addition, it’s unlikely that your increase will be more than the amount you received in your claim. If your car is not found after the theft, and you purchase a new vehicle, note that your rate may also change, since it is based partly on your new car’s make, model and age.

• How do I know if my insurance policy covers theft?
  

  To find out if you are covered for theft, take a close look at your policy documents. There should be a page—probably the declaration page—that outlines the types of coverage you have purchased. If that page lists comprehensive coverage as part of your policy, it is likely that you’re covered for theft. Keep in mind, however, the comprehensive insurance includes a deductible. This is the amount you will pay before your coverage kicks in after a covered claim. It’s often anywhere between $250 and $2,000, and is an amount that you chose when you bought your policy. You should also be able to see on your policy documents if there are any exclusions to your theft coverage. If you do not have access to your insurance documents or are not sure how to read them, a quick call to your insurance agent should help you determine if you are covered for theft.