Does my auto insurance cover a stolen car?

Many states legally require drivers and owners to carry liability insurance on their registered vehicles. This insurance is for bodily injury and property damage. Does auto insurance cover a stolen car? No state has any requirement for insurance against the theft of a vehicle.

Vehicle theft is only covered by optional comprehensive insurance coverage, which is extra insurance.

Auto theft is big business. Criminals may use stolen vehicles to commit more crimes. What percentage of stolen cars are recovered? Only 59.3% of stolen vehicles are recovered.

Comprehensive Auto Insurance Covers a Stolen Car

Affordable comprehensive auto insurance coverage is additional coverage on top of liability coverage. Usually, the comprehensive coverage will pay the vehicle’s cash value less the deductible. The terms of coverage of a stolen vehicle are found in the comprehensive insurance section of your auto insurance policy.

Read more: What happens if stolen car is recovered after insurance company pays claim?

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Making an Insurance Claim for a Stolen Car

If you make a valid auto theft claim and have coverage, your insurance company will ask you many questions to eliminate the possibility of fraud. Unfortunately, many claims regarding a stolen vehicle are untrue, and insurance companies know this problem well.

Comprehensive coverage covers auto theft but not theft of the vehicle’s contents. Home, condo, or renters insurance often covers stolen property theft.

Getting Insurance Coverage After Your Car Is Stolen

The insurance company will want to delay making the payment of a claim to you for as long as possible to recover the vehicle. This delay may be up to eight weeks or more. The wait may be frustrating if the stolen car is your only source of transportation.

The vehicle’s cash value is subject to negotiation, and the insurance company may start with a low offer. Learning How to get the actual cash value of your vehicle may mean you have to demand a more reasonable amount.

If you have an outstanding auto loan, the lender usually requires that you have comprehensive insurance coverage for the loan balance. In this case, the insurance company pays the claim to the lender.

The insurance company will take ownership of the vehicle if the stolen car is found.

Stolen Cars Without Auto Insurance

If your car was stolen without insurance coverage, the first step is to file a police report. Usually, if police find a stolen vehicle, this tends to happen within a few weeks after the owner has reported the vehicle stolen.

However, maybe someone took your car for a joy ride and abandoned it. If you are lucky, it will be towed, and you will get it back by paying the towing fee.

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Comprehensive Auto Insurance for a Stolen Car: The Bottom Line

If you worry about your car being stolen, you need comprehensive insurance on top of regular liability insurance. Do not think you have coverage for auto theft if you only have regular liability auto insurance, as most states require.

Instead, pay extra for comprehensive insurance coverage to protect you from the risk of auto theft.