Does Auto Insurance Cover Stolen Cars? 

Experiencing a stolen vehicle can be incredibly stressful and overwhelming. One of the pressing questions many car owners have is whether their auto insurance will cover the loss. Understanding how auto insurance works in relation to theft can help you prepare for such unfortunate events.

Whether your auto insurance covers a stolen car depends on the type of policy you have. Here’s how different types of coverage may apply:

• Comprehensive coverage is the primary type of coverage designed to help protect against the adverse financial effects of theft.

• Liability coverage does not cover theft. Liability insurance protects against damages you cause to others in an accident, not your vehicle.

• Collision coverage may help cover damage to your vehicle in an accident, but it doesn’t protect against theft.

• Gap insurance may help pay the difference between your loan or lease payoff and your insurer’s settlement.

Filing an Auto Insurance Claim for a Stolen Car

If your car is stolen and you have appropriate coverage, follow these steps to file a claim:

• Report the theft. Immediately contact your local law enforcement and file a report. This step is crucial for both legal and insurance purposes.

• Notify your insurance company. Inform your insurer as soon as possible about the theft. Provide them with the police report and any necessary documentation.

• Complete any required paperwork. Your insurer may require specific forms to process your claim, so be prepared to provide detailed information about your vehicle and the circumstances of the theft.

After you file your claim, your insurance company will conduct an investigation, which may involve verifying the police report and assessing your policy coverage. If your claim is approved, the insurer may pay you the current market value of your vehicle, minus your deductible.

Review your policy to understand how it may help after a car theft.

Contact Us

Contact Festival Auto Insurance in Irving, Texas, to learn more about your auto insurance options and get a quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.