
To get car theft covered, you’ll need comprehensive coverage.
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The movie “Dude, Where’s My Car?” might be a comedy, but auto theft is no joke. Surprisingly, the minimum auto insurance in each state doesn’t cover auto theft. Rather, auto theft is only covered if you have supplemental comprehensive coverage. In this article, we’ll help you find out if your car insurance covers theft, and what to do if your car is stolen.
Not all car insurance covers auto burglary/theft.
Does car insurance cover theft? Yes, if you have comprehensive coverage. However, the minimum coverage for every state in the U.S. doesn’t require this type of coverage, which also covers incidents like fires, floods, and falling rocks.
To get these events covered, you’ll need to sign up for comprehensive coverage. Comprehensive coverage also includes:
However, comprehensive coverage does not cover:
To get vehicle upgrades covered, you’ll need custom parts and equipment coverage.
To get reimbursed for a stolen car or car parts, you’ll need to file a claim with your insurance provider. This is what happens once you file the claim, assuming you have comprehensive coverage:
Usually, auto theft claims take 14 to 30 days to be processed.
Like auto theft, car insurance only covers vandalism if you have comprehensive coverage. Learn more about vandalism coverage.
If you have comprehensive coverage and your vehicle is stolen, then you’ll get reimbursed for the current cost of the vehicle, whether it’s a leased vehicle or a vehicle purchased with an auto loan. However, the value of a car depreciates as soon as you drive away from the dealership, so you may receive less than you paid for the car originally. That’s where gap insurance comes in.
Gap insurance will reimburse you for the difference between what you paid for your car originally and your insurance settlement. Your insurance settlement will pay your car’s actual cash value (ACV), meaning its current worth. Gap insurance ensures that you won’t lose money, even if your car is stolen.
Let’s talk more about ACV, actual cash value. ACV is what your car is worth today, taking depreciation into account. In other words, if you sold your car today, the amount you’d get for it is your ACV.
Now, if you get your stolen car back and the damages are worth more than a certain percentage of the ACV, your insurance company will declare it a “total loss,” so you’ll be reimbursed for the entire ACV (minus your comprehensive insurance deductible). This threshold differs by state and insurer, so ask your insurance agent about the threshold for totaling a car.
Many people wonder how insurance companies value cars and determine the ACV. How can you know that you’re getting reimbursed fairly for your ACV? Here’s how to determine your car’s worth:
Consult the National Automobile Dealers Association’s NADAguides.
Even if you have comprehensive coverage, you’ll still have to pay a deductible before your insurance kicks in up to your coverage limit. To avoid paying a dollar above your premiums, your best bet is to prevent car theft in the first place. Here are our tips for preventing car theft:
When it comes to protecting your vehicle from theft—and potentially lowering your insurance premium—understanding the difference between passive and active anti-theft systems is key.
Passive anti-theft systems automatically engage when you turn off the vehicle and remove the key. These systems don’t require any extra steps from the driver and are always “on” by default. Examples include engine immobilizers, which prevent the car from starting without the correct key, and automatic door locks that activate when the car is turned off.
Active anti-theft systems, on the other hand, require the driver to take action to arm them. This could mean pressing a button on a remote key fob to lock the doors and activate an alarm or manually setting a steering wheel lock. Because these systems rely on the driver’s input, there’s a risk they might not be activated if forgotten.
From an insurance standpoint, both systems can help reduce the risk of theft and may qualify you for a discount. However, passive systems are often viewed as more reliable since they’re always engaged, which can offer greater peace of mind—and potentially a better break on your premiums.
Even the most stringent licensed driver could still fall victim to auto theft. Take these steps if your car is stolen:
Congratulations, your car is yours again! Here’s what to do if you find your stolen car:
No one ever wants to deal with auto theft and burglary, but if you have comprehensive coverage, you won’t have to pay out of pocket for repairs or replacements, excluding your deductible. Check out our auto insurance shopping guide for help picking a full coverage insurer.
Learn even more about auto theft coverage below; we’ve answered the questions you asked the most often.
Comprehensive auto insurance coverage covers theft. Theft is not covered by property damage coverage, collision coverage, or bodily injury coverage.
What auto theft insurance includes depends on your state’s minimum coverage requirements and the supplemental coverage you’ve added on, but in general, full-coverage auto insurance includes these coverages:
Yes, full-coverage auto insurance includes theft under comprehensive coverage. However, it only includes theft of the original car or car parts, not any add-ons, modifications, customizations, or personal belongings stolen from your car.
GEICO only covers items stolen from cars as part of its homeowners/renters insurance policies under its personal property and off-premises coverages.
Does car insurance cover theft and vandalism?. Nationwide. (2022).
https://www.nationwide.com/lc/resources/auto-insurance/articles/does-car-insurance-cover-theft
VEHICLE SECURITY AND RELATED TIPS. sandiego.gov. (2017, Sept 29).
https://www.sandiego.gov/sites/default/files/vehiclesecurity_1.pdf
Does Car Insurance Cover Theft? Allstate. (2019, Nov).
https://www.allstate.com/tr/car-insurance/protect-against-vehicle-theft.aspx
Vehicle Theft Prevention. United States Department of Transportation.
https://www.nhtsa.gov/road-safety/vehicle-theft-prevention
Does car insurance cover theft?. Progressive. (2021).
https://www.progressive.com/answers/does-car-insurance-cover-theft/