Does my car insurance cover a stolen car?
Many people wonder whether car insurance covers a stolen car. If you carry comprehensive coverage on your policy, your car insurance will cover a stolen car. If you can't recover the stolen vehicle, your auto insurance will pay you the actual cash value minus your deductible.
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Diego Anderson
Licensed Real Estate Agent
Diego Anderson is a Real Estate Agent based in the Bay Area of California. Having received his Real Estate License at the age of 18, he wasted no time learning the ins and outs of the industry. With a focus on residential dual agency, he has a passion for supporting and educating families on their home buying and selling decisions. He is no stranger to new builds and new developments. He also r...
Licensed Real Estate Agent
UPDATED: Dec 4, 2023
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Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Dec 4, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Your car insurance company will cover a stolen car if you have comprehensive coverage on your policy
- If nobody finds the car, the insurance company will total it and pay you the actual cash value minus the deductible
- Your car insurance policy will not cover any personal possessions in the vehicle, and you may need homeowners or renters insurance in this case
You’ll be devastated if you wake up one morning to discover that someone has stolen your car from your driveway.
You may ask: “Does my car insurance cover a stolen car?” We understand how dramatic the situation can be for you and why you may be confused about your car insurance coverage. We have researched this topic and will provide you with the answers below.
Car Insurance Covers the Cost of a Stolen Car in Some Circumstances
Your car insurance will cover your stolen car if you have comprehensive coverage on your policy. This type of coverage is typically optional, although if you lease the car, the finance company will usually insist that you have both comprehensive and collision coverage in place.
Remember that companies do not include theft coverage under the liability insurance that your state may require, so you should always weigh up the theft risk as you purchase your insurance.
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The Insurance Company Will Usually Total Your Car if Nobody Finds it
Unfortunately, many people never see their stolen cars again. In this case, the insurance company will “total” the vehicle and will usually pay you its actual cash value (ACV).
Usually, they will send you this sum as a settlement minus any deductible you may have. If you have an outstanding lease on the car, you may need to pay close attention to the settlement amount and consider GAP insurance.
How Insurance Companies Calculate Actual Cash Value
The actual cash value reflects how much the vehicle is worth on the calculation day. It shows how much you might receive for the car if you were to sell it in the condition it was in when someone stole it.
When you work with some of the best comprehensive coverage car insurance companies, you may find they have varying thresholds to consider before they decide whether to total the vehicle.
You will sometimes have to refer to state rules as well. Remember that buying a new version of the same or similar vehicle will typically cost you more than you would receive under an ACV calculation.
You May Owe More Than You Received From Your Car Insurance for a Stolen Car That You Leased
Sometimes, the amount outstanding on your lease when someone steals the vehicle may be more than you receive from the insurance company under an ACV settlement.
Therefore, it’s a good idea to carry GAP insurance coverage as well. As the name implies, this insurance will help you bridge the “gap” between the amount you receive from the insurer and the amount you owe to the finance company.
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Your Comprehensive Insurance Will Not Cover Any Personal Possessions Stolen From the Car
Unfortunately, comprehensive insurance doesn’t cover personal possessions that may have been in the car and lost during the crime. However, you may be able to claim under a homeowners or renters policy instead. Research types of home insurance coverage to learn more about your options.
Some Types of Car Insurance Will Cover the Cost of a Stolen Car
If you carry comprehensive coverage as part of your policy, the insurance company will pay for the costs of your stolen car. They will give you the actual cash value if you cannot recover the vehicle minus the deductible.
You may need renters or homeowners insurance to cover personal possessions within the vehicle and GAP insurance to cover the difference between the ACV settlement and the outstanding lease.
Case Studies: Car Insurance Coverage for Stolen Cars
Case Study 1: Sarah’s Stolen Car Claim
Sarah woke up one morning to find her car missing from her driveway. She immediately filed a claim with her car insurance company, which she had comprehensive coverage with. The insurance company investigated the theft and confirmed that her car was stolen.
They processed her claim and reimbursed her for the actual cash value of the vehicle, minus her deductible. Sarah was relieved to have her stolen car covered by her insurance policy.
Case Study 2: Mark’s Total Loss Settlement
Mark’s car was stolen while he was away on vacation. He contacted his insurance company, which also provided comprehensive coverage. The insurance company conducted an investigation but was unable to locate the stolen vehicle.
As a result, they declared it a total loss. Mark received a settlement from the insurance company, which was the actual cash value of the car minus his deductible. Although it was a disappointing situation, Mark was grateful that his insurance covered the loss.
Case Study 3: Laura’s Additional Coverage Considerations
Laura’s car was stolen, and she had comprehensive coverage on her insurance policy. However, she had personal belongings in her car at the time of the theft. Laura discovered that her car insurance policy did not cover the stolen personal possessions.
Fortunately, she had a renters insurance policy that could potentially cover the loss. She filed a claim with her renters insurance and was able to receive compensation for her stolen belongings.
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Frequently Asked Questions
Does full coverage car insurance cover theft?
Technically, the term “full coverage” may be a misnomer, but it typically refers to comprehensive, which will cover theft.
Does insurance pay for a stolen car if the key is in it?
If you have comprehensive coverage on your policy, the company will generally pay for your stolen car, even if you left the key in the ignition.
How much will insurance pay for a stolen car?
If you can’t recover your stolen car, the insurance company should pay the actual cash value, which considers depreciation, less your deductible.
Are you looking for free insurance quotes?
Your one-stop online insurance guide. Get free quotes now!
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Diego Anderson
Licensed Real Estate Agent
Diego Anderson is a Real Estate Agent based in the Bay Area of California. Having received his Real Estate License at the age of 18, he wasted no time learning the ins and outs of the industry. With a focus on residential dual agency, he has a passion for supporting and educating families on their home buying and selling decisions. He is no stranger to new builds and new developments. He also r...
Licensed Real Estate Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.