When Car Is Stolen How Does Insurance Cover It? The Best Guide!

When car is stolen, how does insurance cover it? The insurance company could help out with such a situation, but you have to note that not all insurance provides coverage for theft. Comprehensive coverage will be able to cover you against particular types of theft.

However, insurance companies would replace your vehicle and certain parts of the car when stolen. Furthermore, the insurance will help repair damages of the car that resulted from a break-in or theft.

when car is stolen how does insurance cover it

But the insurance do not cover any personal belongings from your cars that have been stolen, such as your laptop or phone, for example.


How Insurance Cover For Stolen Cars

When car is stolen how does insurance cover it? The insurance company would go with comprehensive coverage is designed to cover you against theft or any car damage that is not a result of a collision. Typically, the covered perils are composed of falling objects, vandalism, and damage.

Comprehensive insurance helps cover for theft of the vehicle itself, parts of the car that were stolen, or any damages caused by theft or a break-in, such as damages on the door locks or broken windows.

In general, your lender will require comprehensive coverage if you finance or lease your vehicle. But if you owned a car outright, it is only optional whether or not you will get comprehensive coverage.


How does comprehensive coverage work on a stolen car?

There is a coverage limit and deductible for comprehensive coverage. When we say deductible, this is the amount that you have to pay for the covered claim. You can select how much deductible you are willing to pay when you acquire comprehensive coverage.

On the other hand, the coverage limit is the maximum benefit that you can get for the covered claim. Most often than not, the limit is the depreciated value or the vehicle’s actual cash value.

Take note that the comprehensive coverage will not pay for a rental car as a part of benefits for your stolen car. To enjoy that, you will need to purchase rental reimbursement coverage from your insurance provider.

This is another optional coverage that will help you pay for transportation expenses like public transit fare or rental car during the insurance claim.


Will my car insurance policy cover my stolen car parts?

Yes, if your policy includes comprehensive coverage, this will help you replace the stolen parts of the car and repair damages that the thieves have done to your vehicle. But this will only be up to the coverage limit deducted by your deductible.

Bear in mind that a comprehensive coverage would also not cover any custom equipment or parts that you have installed to your car, like a sound system, for example.

So if you have significant customs parts on your car, consider getting additional coverage for those custom parts. Furthermore, it is specified on your coverage how stolen parts will be replaced – either aftermarket parts or original manufacturer parts.


Stolen Car Claims And Insurance Reimbursement

If you purchase comprehensive coverage and your vehicle is stolen, you must promptly file a claim with the insurer. Generally, the insurer will conduct an investigation. Once it is completed, the insurance will reimburse you for your car that has been stolen for up the limit of your comprehensive coverage.


How much is the payout for a stolen car?

The comprehensive coverage that you can get is up to the car’s actual cash value minus the deductible. This will be the maximum amount that you can receive when your car is stolen. Learn how much do insurances pay for stolen cars.

But if you recover your car from theft and have your car repaired and can afford the cost, the insurance will only compensate up to this amount. In other words, you will only receive enough amount for the repairs—more on this below.


What Will Happen If I Recovered My Car?

In the United States, it is shown that about 46% of the cars stolen are recovered. But although you get your car back, it may have missing or damaged parts. The insurance company will typically cover the repairs unless the costs are more than the car value, which will be a loss on their part.

The insurance will decide whether or not the car is worth saving.  If so, they will reimburse for the repair costs. Otherwise, they will pay for the ACV of the car minus the deductible.

If you recover your car after the claim’s payout, the insurance provider will take ownership of the vehicle. Alternatively, you can then return the claim amount you received. Speaking of cars, you might want to learn what happens if you don’t pay for your car insurance.


It’s A Wrap!

Going back to the question: when car is stolen how does insurance cover it? In a nutshell, you will only be protected against theft if you purchase a comprehensive insurance policy.

This will be paying you for the actual cash value of your car if it is stolen and has not been recovered. Other than that, this particular coverage will also pay for any damages such as animal collisions, fire, weather, and vandalism. Learn how insurance companies work!

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