Comprehensive car insurance pays you if your car gets stolen. This optional coverage is the only way that car insurance reimburses you for theft. That’s why it’s smart to buy comprehensive coverage.
Does Car Insurance Cover Car Theft?
If you want insurance for car theft, you’ll need to add comprehensive insurance to your car insurance policy. Comprehensive coverage pays out for car theft and certain types of vehicle damage, up to the actual cash value of your car, minus your deductible.
What Comprehensive Car Insurance Covers
Comprehensive car insurance will cover these theft-related problems:
- Pays if your car is stolen.
- Pays to replace car parts that are stolen, such as a catalytic converter, but not custom parts or equipment, like an aftermarket sound system.
- Pays to repair damages caused by theft, car break-in or attempted break-in.
- Pays if your stolen car is recovered and needs to be repaired.
You’ll be responsible for your deductible for a theft claim. For example, if you have a $500 deductible and your car is valued at $7,000, you would get an insurance check for $6,500 ($7,000 – $500 deductible = $6,500).
Comprehensive insurance also covers damage to your vehicle from problems such as vandalism, fires, floods, hail, falling objects (like tree branches) and collisions with animals (like deer).
No state law mandates that you have comprehensive insurance. But if you finance or lease your vehicle, your lender will likely require you to buy comprehensive coverage in order to protect their financial interest.
Comprehensive insurance won’t cover personal items that are stolen from your vehicle. For example, if your laptop gets stolen, comprehensive coverage won’t pay to replace it. However, you generally have coverage for stolen items under condo, renters or homeowners insurance.
Another thing comprehensive insurance won’t cover is the cost of a rental car. If your vehicle is stolen or damaged, you’ll need rental reimbursement insurance if you want to make an insurance claim for a rental car while your vehicle issue is resolved.
Related: Does Auto Insurance Cover Gas Theft?
How Much Does Comprehensive Insurance Cost?
The average cost of comprehensive insurance is $298 per year, based on Forbes Advisor’s analysis.
Average Cost of Comprehensive Insurance by State
| State | Average cost of comprehensive insurance |
|---|---|
|
$269
|
|
|
$193
|
|
|
$230
|
|
|
$352
|
|
|
$178
|
|
|
$498
|
|
|
$159
|
|
|
$185
|
|
|
$275
|
|
|
$266
|
|
|
$104
|
|
|
$169
|
|
|
$289
|
|
|
$259
|
|
|
$403
|
|
|
$533
|
|
|
$397
|
|
|
$378
|
|
|
$150
|
|
|
$191
|
|
|
$237
|
|
|
$393
|
|
|
$432
|
|
|
$325
|
|
|
$426
|
|
|
$420
|
|
|
$556
|
|
|
$175
|
|
|
$140
|
|
|
$210
|
|
|
$269
|
|
|
$415
|
|
|
$143
|
|
|
$494
|
|
|
$233
|
|
|
$485
|
|
|
$171
|
|
|
$318
|
|
|
$169
|
|
|
$290
|
|
|
$692
|
|
|
$275
|
|
|
$348
|
|
|
$212
|
|
|
$200
|
|
|
$211
|
|
|
$149
|
|
|
$344
|
|
|
$359
|
|
|
$349
|
|
|
Source: Quadrant Information Services.
|
|
Recovered Cars and Comprehensive Car Insurance
Sometimes stolen cars are found after you filed a comprehensive insurance claim. What happens if you already got paid by your insurance company for your stolen vehicle and then it’s recovered? The car insurance company takes ownership of the stolen car if it’s found after you’ve been paid for your comprehensive insurance claim.
Suppose you filed a comprehensive claim but have not yet been paid, and your stolen car is recovered but it’s damaged. Your comprehensive insurance will pay for repairs, up to the actual cash value of your car, minus your deductible.
In some cases, your car might be totaled because of the cost of repairs. If the claim hasn’t been paid and your recovered car is totaled, your insurer would pay the same as it would if the car wasn’t found after the theft—your deductible is applied and it pays you the actual cash value of the vehicle.
How Many Cars Are Stolen Each Year?
There were more than 1 million motor vehicle thefts in 2022, according to the National Insurance Crime Bureau (NICB). It’s the first year since 2008 that vehicle thefts nationwide topped 1 million. Vehicle thefts jumped 7% from 2021 to 2022, and monthly theft totals nationwide exceeded 75,000 in 2022, the NICB reports.
NICB hasn’t released the most stolen vehicles for 2022, but two types of pickup trucks were the most stolen vehicles in 2021.
How Can I Prevent My Car From Being Stolen?
There are several things you can do to reduce the risk of your car being stolen. The NICB recommends a layered approach.
Take Simple Security Steps
The first layer of defense is common sense. Don’t make car theft easy for the thief. A few simple precautions can reduce the likelihood of someone taking off with your car.
- Lock your doors.
- Take your keys out of the ignition.
- Close your windows.
- Park your car in well-lit areas.
Use a Visible or Audible Anti-Theft Device
The second layer involves adding some sort of anti-theft device to help deter a car thief, including:
- Audible car alarms.
- Brake locks.
- Identification markers in or on the car, such as security labels that mark various parts which can be identified if they are removed.
- Microdot marking.
- Steering column collars.
- Steering wheel/brake pedal lock.
- Wheel locks.
- Window etching.
Install a Vehicle Immobilizer
The third layer involves installing a device that will prevent a car thief from driving off with your car, including:
- Kill switches.
- Fuse cut-offs.
- Smart keys.
- Starter, ignition and fuel disablers.
- Wireless, ignition authentication.
Get a Tracking System
The fourth and final layer involves installing a tracking system that police or a monitoring service can use to locate your vehicle if it is stolen. Some of these devices use GPS and wireless technologies. For example, the LoJack Stolen Vehicle Recovery System uses a hidden transceiver that can be tracked by police and aircraft.
How Do Insurance Companies Investigate Car Theft Claims?
When you file an insurance claim for a stolen car, your insurance company will most likely investigate the theft. You’ll need a police report to make a theft claim.
Your claim could be assigned to your insurance company’s special investigations unit. A typical investigation might include obtaining the police report, speaking with witnesses, investigating the scene of the theft and a forensic analysis if the vehicle is recovered.
Additionally, a special investigations unit investigator could contact you and ask follow-up questions regarding the theft of your vehicle. You could also be required to attend an examination under oath, which is a formal proceeding where you are questioned by a representative of an insurance company in the presence of a court reporter and subject to perjury.
Your auto insurance policy requires you to cooperate with your insurance company’s investigation. If you fail to do so, your claim could be denied.
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Car Theft Insurance FAQ
What type of insurance covers stolen cars?
The comprehensive insurance portion of your auto policy covers stolen cars, as well as stolen parts and/or damage caused by a break-in. Comprehensive insurance is an optional coverage type. The average cost for comprehensive coverage is about $300 a year.
Comprehensive insurance covers other, specific problems with your vehicle, such as damage from fire, floods, hail, falling objects and collisions with animals.
Does comprehensive car insurance cover a rental car if my car is stolen?
Comprehensive insurance does not pay for a temporary rental car if your car is stolen.
If you want coverage for a rental car while your claim is being settled, add rental reimbursement insurance to your policy. Rental reimbursement insurance can also reimburse you for other types of transportation expenses, such as commuter trains, city buses and Uber or Lyft.
Does comprehensive car insurance cover personal items stolen from my car?
Comprehensive insurance does not cover the theft of your belongings from your vehicle. However, you have coverage for stolen belongings under your home, renters or condo insurance policy.
For example, if someone swipes your laptop from your car, you can file a claim under your home insurance policy. But note that your home insurance deductible will apply.
Will I get a car insurance discount for anti-theft devices?
Insurance companies may offer car insurance discounts if your vehicle is equipped with either a factory-installed or an aftermarket anti-theft device. Discounts typically range between 5% to 25% off comprehensive coverage, depending on your insurance company.
Examples of anti-theft devices that typically land you a discount include stolen-vehicle recovery systems (like LoJack), GPS-based systems (like OnStar’s “remote ignition block”) and VIN etching, which is a permanent engraving of your car’s vehicle identification number (VIN) on the windows and windshield.
Can I claim items stolen from my car?
Car insurance won’t cover you for stolen personal items taken from your vehicle. You would instead need to go through your home insurance, renters insurance or condo insurance policy.
One of those policy’s personal property coverage would be the coverage that would help you out. Personal property coverage is usually capped at 50% to 70% of your dwelling limit. That means if you have $300,000 dwelling coverage, the personal property coverage may max out at $150,000 if your policy limits coverage to 50% of dwelling cover.
Personal property coverage usually has a deductible, which is the amount deducted from your claims payment. If a thief stole two laptop computers from your car totaling $3,000 in value, your home policy would reimburse you that amount minus your policy deductible.
Will insurance cover a stolen car if keys were left in it?
Comprehensive car insurance coverage typically covers you if your car is stolen. That even includes if you left the keys in the vehicle or left it running.
Comprehensive coverage is optional and also pays for non-crash damage to your vehicle, such as damage from weather, flood water, fire and collisions with animals.
