Does Auto Insurance Cover a Stolen Car? – ValuePenguin
car insurance covers a stolen car, but only if you have comprehensive coverage.
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If you do, you’re covered for total theft of your vehicle, as well as damage to your vehicle that occurs during a break-in. You will be paid up to the actual cash value (ACV) of your car, less your deductible.
Reading: How much does insurance cover for stolen car
Unfortunately, no other type of car insurance covers theft, so if you don’t have comprehensive insurance, you’re on your own to cover the cost of a replacement vehicle.
If your car is stolen, file a police report immediately and contact your insurance provider to find out if you’re protected. The sooner you do this, the sooner you can get your car replaced, and the more likely it is to be found.
what kind of insurance covers theft?
Besides the simple “car was stolen” scenario, there are other theft-related cases where comprehensive coverage will cover your expenses.
This includes any damage done to your car if it breaks, such as a broken window, damaged lock, or stolen car keys. Comprehensive also includes the theft of your catalytic converter or other commonly stolen auto parts.
Unfortunately, you will not be covered for stolen personal property unless it is a permanent accessory to your car, such as a steering wheel or built-in stereo. For example, if you left your laptop, dashcam, or phone in your car and it was stolen, you could file a homeowners or renters insurance claim to replace your stolen items.
items covered by comprehensive insurance in case of theft
If you don’t have comprehensive insurance on your car, you won’t be covered if it’s stolen. other coverages, like liability and collision coverage, don’t pay for a stolen car.
coverages that do not pay for auto theft
Does insurance cover my stolen car if I left the keys in it?
yes. As long as you have comprehensive coverage for your car, you’ll be covered no matter what the circumstances of the theft. That includes situations where you’ve walked away with the door open, left the keys in the ignition, or even left the car running.
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The only time your claim can be denied is if your insurance company finds evidence that you knowingly allowed your car to be stolen in order to receive payment. That’s considered insurance fraud, and not only will your claim be denied, it’s also a crime. you may even face criminal charges.
what to do when your car is stolen
As soon as you realize your car has been stolen, contact the police first. once you have filed a police report, you can start an insurance claim.
1. file a police report
It is best to file a police report within 24 hours of the car being stolen. The faster the police can start looking for your stolen car, the more likely they are to find it. it also means you’ll be able to start the claim process sooner.
The police will ask you for the following information to help them find the vehicle:
When filing your police report, be thorough and honest. Unfortunately, because fraud occurs, the police may need to rule you out as a suspect. After you file your report, immediately notify your auto insurer to start the claim process.
2. file an insurance claim
Your auto insurance provider will need as much information as possible to evaluate your claim and determine your payment offer. geico needs the following information when a policyholder files an auto theft claim:
Your provider may also run a credit check to verify that you are in good financial standing. If you have significant debt and file a stolen vehicle claim, it may raise questions about whether you are trying to commit fraud and could increase the likelihood of your claim being denied.
Finally, if you are leasing or financing your vehicle, you should notify the lender as soon as possible.
how much will my stolen car payment be?
Comprehensive insurance covers up to the actual cash value of your car, less your deductible, which is an amount you set when you buy car insurance.
This is the maximum amount you will receive as compensation; If the car is repossessed and the repair cost is less than this, you will only receive enough to pay for the repairs.
actual cash value
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acv does not include any insurance deductible you may owe. To arrive at an appraisal, the insurance adjuster will consider the make and model of your car, age, accident history, book value of Kelley Blue, and other details such as the wholesale price of your car.
Only major vehicle accessories count toward your car’s valuation. things like your wheels and seats should count towards your valuation.
Comprehensive insurance will not cover ancillary items, such as an mp3 player plugged into your auxiliary outlet. however, if you have homeowners or renters insurance, you may be able to file a separate claim for these items, even if your car was not parked at your home during the theft. You will likely have to pay a separate deductible for this type of claim.
The adjuster’s job is to provide a fair, but often low, valuation of your car. Research your vehicle’s value to see if you’re getting a decent deal. you can use:
Be sure to include any pertinent information your adjuster would consider, such as mileage and accident history. You can also run dealer reports to see how similar cars are selling.
dispute your offer
If you think the ACV your insurer is reporting is unfair, you can counter your provider’s offer and back up your position with solid research. If you’ve made improvements to your vehicle and can prove it with receipts and photos, the insurer may be able to adjust your valuation.
Let’s look at a specific example to see how your claim might turn out.
what happens if my car is repossessed?
in usa In the US, about 46% of stolen cars are recovered. even if your car is among that group, the vehicle may be damaged or missing parts.
Your insurance company will pay for car repairs unless the repair costs are more than the value of the car, making it a total loss.
If your vehicle is repossessed after your insurer has paid your claim, your insurance company will likely take possession. however, if you have not purchased a replacement vehicle, you may be required to repay the claim amount. this would be handled on a case-by-case basis with your provider.
frequently asked questions