What You Should Know
- State-required minimum liability insurance does not cover auto theft
- Optional comprehensive insurance coverage covers auto theft
- Authorities never recover around 40% of stolen vehicles
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.
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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.
Frequently Asked Questions
Do I have to file a police report?
To make a claim with your insurance company for a stolen vehicle, you must first file a police report. You may have to go to the police station to complete the report. Make a copy of the report to keep and give a copy to your insurance company.
What happens if my personal belongings were in the car when it was stolen?
Auto insurance does not usually cover personal property stolen from the vehicle. However, you may have coverage under your homeowner, condo, or renters insurance.
How long does it take for an insurance company to pay out for a stolen vehicle?
If you have a valid claim, there is usually a waiting period of at least 30 days and up to eight weeks or more for the insurance company to accept that the car is stolen and pay the claim.
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Leslie Kasperowicz
Farmers CSR for 4 Years
Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insurance…
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