Does my car insurance cover a stolen car?

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.

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.

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.