Having your car stolen is a traumatizing experience, and it can be made even worse if your insurance doesn’t cover it. Many people wonder does insurance cover you if your car is stolen, but thankfully we have all the answers here.
We’ll look at when you’re covered, what happens if the car is recovered, and if there are any exceptions. Let’s get started by answering the key question.
Does Auto Insurance Cover a Stolen Car?
Auto insurance covers a stolen car, but only if you have comprehensive coverage of the car. The only exception to this is if you have opted for a perils cover, which includes a stolen vehicle.
There is no such thing as “stolen car insurance.” The only form of insurance that covers stolen vehicles is specific perils or comprehensive car insurance. So, if you have either of these on your car policy, you are covered if your car is stolen.
With comprehensive coverage on your car, you can be certain that your insurance claim will not be denied for “coverage exclusion” if your car is stolen and not recovered. Rather, your insurance company will likely reimburse you for the value of the car, less insurance deductibles.
With comprehensive insurance, the insurance company pays you the stolen car’s actual cash value (ACV). The actual cash value of a car is its replacement cost minus depreciation from normal wear and tear.
What Happens if the Stolen Car Is Recovered?
Virtually all recovered cars feature one or more theft-related damages. Common damages include:
- Broken windows
- Damaged locks
- Stolen car keys
- Missing car parts (like catalytic converter, battery, built-in stereo, etc.)
If you have comprehensive coverage and your stolen car is recovered, your car insurance company will pay for all theft-related repair costs, unless such costs exceed the car’s value.
Thus, in some scenarios, the insurance company will reimburse you for the stolen car, even if it is recovered. Your insurer’s decision (to pay you to repair the car or reimburse you for its value) depends on “the repair costs vs. the car’ value.”
If the repair costs are less than the car’s value – If the insurance company calculates that the cost of repairing the recovered car is considerably lower than the value of the car, they will reimburse you for the cost of the repairs, less all insurance deductibles you owe.
If the repair costs are more than the car’s value – If the insurance company calculates that the cost of repairing the recovered car is higher than the car’s value, they will pay you the actual cash value (ACV) of the car. Your insurer will take ownership of the recovered car when they reimburse you for the value of the car.
What Comprehensive Car Insurance Covers?
Comprehensive car insurance covers the complete theft of your car and any damage to the car in theft incidents but does not cover personal property in the car stolen with it.
Comprehensive car insurance covers:
- Complete theft of a car
- Damage to a car resulting from a break-in
- Car crash while stolen
- Stolen car parts
- The vandalization of your car
However, comprehensive insurance will not cover you for jewelry, cameras, laptops, gift items, etc., stolen from your car.
Does Your Comprehensive Insurance Cover Your Stolen Car If You Left the Keys Inside?
Comprehensive coverage on your car will cover you no matter the theft situation.
This includes situations where you:
- Left the car unlocked
- Left the keys in the ignition
- Left the car running
The only time your insurance claim may be denied (despite having comprehensive coverage) is when your insurer thinks you have committed insurance fraud. Insurance fraud, in this instance, is deliberately allowing your car to be stolen so you can receive a payout.
Know that insurance fraud is also a crime. If found guilty, not only will your insurance claim be denied, but you may also face criminal charges.
Car Insurance Policies That Do Not a Stolen Car
There are different car insurance policies that provide protection against specific car incidents. While many of these policies are popular amongst car owners, they do not provide coverage for a stolen car.
Some of these popular car insurance policies that do not cover you if your car is stolen are:
Liability coverage – This car insurance covers you if you harm someone else or cause damage to their property while operating your car. It covers only injuries or damages to the third party and their property.
Collision coverage – This insurance covers you if you are involved in an accident. It covers only the cost of repairing or replacing your car.
Personal injury protection – This insurance covers medical costs and lost wages for you and your passengers if you are involved in an accident.
Uninsured motorist coverage – This car insurance covers your medical costs if you are injured in a car accident caused by an uninsured driver, a hit-and-run driver, or a driver whose insurer denies coverage.
Final Thoughts
Coverage exclusion is one of the main reasons people have their insurance claims denied. For example, liability insurance, collision insurance, and other popular car insurance policies do not cover stolen cars.
If you want your insurance to cover you when your car is stolen, go for comprehensive coverage or ensure car theft is included in your perils cover. If your car has been stolen, make sure to file a police report before contacting your insurance company.
As a car owner, I found this article very informative and helpful. It provided a clear explanation of the coverage options available for car theft incidents and highlighted the importance of comprehensive insurance coverage. I appreciated the article’s emphasis on the fact that car theft can happen to anyone, regardless of where they live or what type of car they drive. It’s important to have the right insurance coverage in place to protect against the financial losses that can result from car theft. It also provided valuable insights into factors that can impact an insurance company’s payout for stolen cars. As a car owner, it’s important to be aware of these factors and take preventive measures, such as using anti-theft devices and parking in well-lit areas, to reduce the risk of car theft. Overall, I found the article to be well-written and easy to understand. It provided a good overview of what to expect in case of a theft-related incident and emphasized the importance of being properly insured. I would recommend this article to any car owner who wants to understand their insurance options in case of car theft.
Dear Milo, thank you for taking the time to share your thoughts on our article. We’re glad to hear that you found it informative and helpful in understanding the various coverage options available for car theft incidents.
We agree that car theft can happen to anyone, regardless of where they live or what type of car they drive. That’s why it’s crucial to have the right insurance coverage in place to protect against the financial losses that can result from car theft. It’s also important to take preventive measures to reduce the risk of car theft, such as using anti-theft devices and parking in well-lit areas, as you mentioned.
We appreciate your feedback! If you have any questions or need further assistance with your insurance coverage, request a free quote on any of our auto insurance plans by calling us at (905) 889-3616 or by visiting our car insurance quote Ontario request form!