Does Car Insurance Cover Theft?

Does Car Insurance Cover Theft?

Car theft is an unfortunate experience that can make owners anxious and stressed out. However, knowing that your car has insurance might be a light in the darkness. Usually, car insurance policies of many companies include car theft too. For that, check the papers, terms, and policies thoroughly so that you are already aware of how to use these policies in your favor during unsettling situations.

Keep in mind that only the car is included in the insurance. But other personal property and items in the vehicle do not count towards the car insurance. So, don’t ask for compensation from your car insurance in this regard.

Car insurance policy

If you have tried to recover your car and still cannot see any positive response, then you can ask for compensation from the car insurance company. It all depends on the policy. Some policies even include paint, custom parts, and car rims. When your vehicle gets stolen due to your car insurance policy, it will save you from a lot of troublesome situations.

How insurance companies cover theft

Comprehensive coverage

If you have comprehensive coverage on your car and someone steals your vehicle, then the insurer will provide you with compensation. For this, check the latest price of your car, and you can get that amount. This is applicable only if you have comprehensive coverage.

If your car is recovered, there is a lot of damage to your vehicle. And now, all the repair costs fall under the comprehensive insurance category. They will pay for all the expenses of repairing the car.

Most people believe that the best car insurance policy is full coverage car insurance. And that’s the only policy that effectively works against automobile theft. However, you might be surprised to learn that a full-coverage policy does not cover total costs. There are still some things that are not included in this policy.

But in simple words, in a full coverage policy, two insurances are included, i.e., collision and comprehensive car insurance.

However, the cost of an insurance policy varies from dealer to dealer. You can buy both approaches separately. These insurance policies can play a vital role in making you feel safe even if your car gets stolen.

Collision coverage

It mainly provides safety from automobile theft. This insurance policy’s cost is affordable and highly recommended.

Comprehensive coverage

In this type of coverage, many different things are included. Most importantly, it also includes vandalism, which can cause a lot of stress to the owner. Also, broken car doors, glass windows, and things like these fall under this category.

Customized parts and equipment

Some policies don’t inform car owners when their custom car parts are stolen. Or their car has custom parts or specific items. They don’t fall under the insurance company’s policy. So, you must pay the price to repair those custom parts.

A new policy is introduced especially for those who want to ensure that all the custom parts are safe and work in their optimum condition if they break or get damaged by automobile theft. This policy is known as “custom parts and equipment” (CPE) coverage.

With some extra money, you can ensure that these parts are saved. In other words, you will get compensation for all those items. For example, suppose you added a car immobilizer, another beautiful item to secure your car. Also, you can ensure that your vehicle is safe and works only with the help of a passcode. But thieves are clever and have even found a solution to this security. So, even if this part gets stolen, your custom parts and equipment (CPE) will cover its costs.

How much can these policies cover?

With the help of comprehensive insurance, you can repair or get almost 1000 USD. More than that is not possible under this insurance policy. So if you want a full-fledged policy that will save you from the trauma of car theft, then don’t hesitate to get custom parts and equipment (CPE) coverage. It’s because under this category you can get more than 1000 USD. Even if the repair costs go above 1000 USD, you can freely trust this insurance policy to get the job done.

Theft of personal items

Usually, people assume that car insurance includes all the items that are present inside the car during the time of theft. However, it’s not true at all. Your things don’t fall under this category. You can get any other policy to insure your personal belongings, even if your mobile phone, laptop, and briefcase are in the car. You won’t get any compensation for them from the car insurance company.

You can get a homeowner’s policy, through which you can get insurance for all the personal items in the car while it is stolen. You might be glad to know that you will get insurance even if your car is not at your home. No matter your car’s location, you will get compensation through this policy.

Moreover, electronic device insurance can cover all the electronic devices in the car, mainly laptops and other devices. Make sure to mention all these terms in the policy to avoid any conflicts in the future.

Liability insurance and a car

A common misconception is that liability insurance can easily cover car theft. The primary purpose of liability insurance is to give you compensation if you get injured or harmed. Cars and other electronic items are not included in this insurance policy.

Collision coverage is also not suitable for car theft. It’s only helpful in the protection of your car.

Comprehensive insurance is the best choice for a good insurance policy that can cover car theft easily.

Make sure to read all the guidelines thoroughly. Most of the time, people don’t read the terms and policies, leading to future misunderstandings and anxiety, not knowing that their policy doesn’t even include car theft. It can leave a person anxious and downright depressed.

Things to do when your car is stolen.

When your car is stolen, it’s a tough time. You might have zero ideas about how to respond or act. But make sure to act rationally and quickly to make things easier for yourself.

1. Contact the police.

Immediately contact the police and let them know about your situation. This way, the chances of the recovery of your car are high. The police will ask basic questions such as your car’s color, the car’s number plate, and where you lost it. This way, they can work hard to find the culprit.

2. Insurance companies

After calling the police station, immediately call the insurance company. to let them know about your problem. This is essential to ensure that your company has covered you with the insurance money. Also, if you have a suspicion or certainty that there were items left in the car, then immediately contact renter’s insurance. If you do all these tasks quickly it will be easier to find your car and get compensation.

3. Theft prevention discount

Various companies offer discounts to a lot of people. Especially those who already have a tracking or anti-theft system in their cars. It’s because the cars can be quickly recovered through this process. And you don’t need to burn out because of this troublesome issue.

Also, a discount is offered for the number plate. Suppose someone has their number plate as the identification number of a car on the windows or doors. In many of these cases, you can also get a lot of discounts.

Regarding anti-theft discounts, systems check out which insurance company around you offers them. It’s not the same for every company. Every company has a different set of rules and regulations that they follow.

Check them beforehand, so you don’t need to worry about your car being stolen. It’s not an easy time, but be calm in this situation. Because by panicking, you will only mess up even more. Before taking an insurance policy, check their requirements and ask them if you have any confusion. This way, you don’t have to live in constant worry about whether your car is wholly insured or not.


There are tons of insurance policies that claim to cover everything in the case of automobile theft. But check the guidelines properly to make sure whether this is precisely what you are looking for. Liability and collision coverage are not enough to save you from this situation. Comprehensive coverage is best in this regard. But remember that it won’t cover any personal items in the car. And if you think about making them safe, you can get custom parts and equipment (CPE) coverage. Don’t forget to take all the preventive and necessary measures as soon as possible when your car is stolen. This is essential because it can save you from many troublesome situations.

If you have any queries or questions, feel free to ask in the comment section below. Thank you for reading!

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