Does Car Insurance Cover Theft?

Last updated March 11, 2022

Car theft is a costly misfortune. Does car insurance cover theft? It depends. Keep reading to learn how to add theft protection to your auto insurance policy to cover expenses if your car is broken into or stolen.

How Common is Car Theft?

Car theft happens in every state. In 2020, Colorado saw the highest rates of auto theft–nearly 525 thefts for every 100,000 inhabitants. Vermont had the lowest theft rate, at 42.4 for every 100,000 residents. Still, auto theft is prevalent whether you live in a state at the high end or low end of the spectrum. 

Fortunately, there are ways to minimize your risk of car theft. Some tips we recommend for helping to prevent car theft include:

Always take your keys out of your vehicle when you’re not using them
Remember to lock your doors
Close your windows fully
Park in well-lit areas and near other cars, if possible
Install or activate an anti-theft device
Keep any valuable items out of sight (and out of your car altogether when possible)

Should you still become a victim of this crime, it’s essential to know your options for protecting yourself financially if someone steals your vehicle. 

Does Car Insurance Cover Theft?

Does car insurance cover theft and expenses related to the incident? The answer is: it depends on your policy. The only type of auto insurance that covers theft is comprehensive coverage.

All states have minimum requirements when it comes to the type and amount of car insurance resident drivers must hold. As of now, no states require drivers to carry comprehensive coverage. However, most insurance providers offer comprehensive coverage, which you can add to your policy. 

What Does Comprehensive Insurance Cover?

Comprehensive coverage is a great way to ensure you are financially protected if your car is stolen or damaged during a break-in or attempted theft. There are two scenarios where comprehensive car insurance covers theft:

Your vehicle is damaged due to a break-in. In that case, comprehensive coverage will typically help pay for broken door locks, smashed windows, and a broken ignition system.
Your vehicle is stolen. In that case, comprehensive coverage will typically pay you up to the actual value of your car, minus your deductible.

It’s important to note that comprehensive insurance only covers the cost of stolen or damaged permanent, pre-installed car features. It does not cover the cost of personal items stolen from your vehicle. However, it does provide financial protection in other scenarios, including damages due to vandalism, hail, flood, fire, and non-vehicle-related collisions. 

How Do You Know if Your Car Insurance Covers Theft?

In the unfortunate event that your vehicle is stolen or broken into, it is important to know if your car insurance covers theft. Be sure to read your policy thoroughly and contact your insurance company if you have any questions about whether or not your car insurance covers theft. By understanding your coverage, you can be better prepared if someone steals or breaks into your car.

If you want to find the most affordable car insurance policy with comprehensive coverage, get personalized quotes from the best insurance providers today!

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Does Car Insurance Cover Theft?

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