You leave your house for the morning but quickly realize your vehicle is nowhere to be seen. Your heart races. Did you park somewhere else? Did it get towed? You perform a hurried search to check if your car is gone, and in that instant, you realize your vehicle was stolen. Although no one desires to experience this situation, it occurs more frequently than most people realize. And suddenly, you’re left wondering: does my insurance cover this?
Find Cheap Auto InsuranceThe focus today will explore both the coverage limits of your car insurance during theft incidents and the outcomes when your vehicle is stolen with full coverage insurance.
The Truth About “Full Coverage”
Let’s start by clearing up one big misconception. Full coverage isn’t a specific type of policy—it’s a general term used to describe a combination of coverages, usually including:
- Liability coverage – covers damage you cause to others.
- Collision coverage – pays for damage to your own car from accidents.
- Comprehensive coverage protects against non-collision events, including theft.
So when people ask what happens if your car gets stolen and you have full coverage, what they’re really asking is whether comprehensive coverage is included in their plan. If it is, great! That means you’re likely protected if your vehicle is stolen. If not, unfortunately, theft isn’t covered.
What Does Comprehensive Insurance Cover?
Comprehensive insurance is your go-to when something unexpected (and non-collision-related) happens to your vehicle. This includes:
- Theft or attempted theft
- Vandalism
- Fire
- Natural disasters like floods or hail
- Falling objects (yes, even trees!)
- Animal damage
The actual cash value (ACV) of your vehicle that equals its current worth at theft time without your deductible amount becomes the insurance payment in theft cases. Insurers will only pay out the actual cash value for stolen vehicles while you are responsible for paying your deductible amount, and the stolen vehicle price will remain unpaid (unless gap insurance exists).
When your car gets stolen, thus triggering full coverage, you will get compensation that equals the current market value of your vehicle reduced by the deductible amount.
What to Do Immediately If Your Car Is Stolen
If your car is missing, time is of the essence. Here are the steps you should take right away:
1. Call the police
This is non-negotiable. File a police report immediately. You’ll need to provide details like the make, model, color, VIN, and license plate number. A police report is required to process an insurance claim.
2. Contact your insurance company
Notify your insurer as soon as the theft is confirmed. The claims process begins here, and they’ll ask for all relevant information, including the police report number.
3. Call your lender or leasing company
Notifying your lender about the accident becomes necessary for individuals who have financed or leased their car. The company financing the vehicle maintains an economic stake, due to which it demands involvement during claims assessment.
What If Your Car Is Recovered?
Sometimes, stolen vehicles are found. If that happens:
- If the car is recovered before your claim is settled, your insurer will typically pay for any necessary repairs due to damage sustained during the theft.
- If it’s recovered after your insurance has already been paid out and you’ve transferred ownership to the insurance company, the vehicle now belongs to them.
Either way, what happens if your car gets stolen and you have full coverage also depends on whether your vehicle is ever found—and in what condition.
Does Insurance Pay Off Your Loan?
Here’s where things get tricky. After your insurer determines the stolen car is unrecoverable, they will pay the actual cash value under your comprehensive coverage policy. Total losses regarding your car create complications when your car debt exceeds the insurance payout value.
The difference between your car loan amount and actual cash value must be paid by you unless you purchase gap insurance. The additional insurance policy, known as gap insurance, safeguards the amount between your insurance check and the unpaid balance on your loan.
Checking what happens in such situations requires consideration of additional factors like gap insurance because newer vehicles or those with large loan attachments can benefit from this coverage.
What About Personal Items Inside the Car?
The coverage from your car insurance policy generally excludes reimbursement for personal items present inside your stolen vehicle. Your homeowners or renters’ insurance coverage could assist you after such occurrences.
You would have to file a distinct claim under your home or renters’ policy for any valuables, such as laptops or handbags, inside your vehicle.
Will You Get a Rental Car?
Your insurance coverage through rental reimbursement allows you to obtain a short-term rental car until your claim receives processing. Additional protection from the coverage can be included for rental cars through optional add-on expenses.
Check your policy or consult with your insurance agent to determine actual coverage, as assuming insurance coverage without verification is unsafe. The small increase in premium makes rental reimbursement useful for people whose daily routine depends on having car access.
How Long Does the Insurance Process Take?
Insurance companies typically decide whether to declare full compensation only after a period ranging from 21 days to about 30 days when your automobile remains unrecovered. Law enforcement officials have obtained a time window for search activities due to this delay.
Your insurance provider utilizes the waiting period to confirm theft details while determining your vehicle’s actual cash value.
Your process becomes faster when you respond promptly and submit every required document at the beginning.
Tips to Prevent Car Theft
Even if you’re covered, car theft is a major hassle—so prevention is your best defense. Here are a few tips:
- Always lock your doors and take your keys with you
- Don’t leave valuables visible in the car
- Park in well-lit or secure areas
- Consider installing an anti-theft or GPS-tracking device
- Never leave your car running unattended
Bonus: Some insurance companies offer discounts for vehicles equipped with anti-theft technology!
So, what happens if your car gets stolen and you have full coverage? Your comprehensive insurance policy will reimburse the actual value of your car. Your insurance company executes the claim procedure to offer a payout for your vehicle’s worth at loss time minus your deductible if they fail to locate it.
Find Cheap Auto InsuranceThe responsibility to pay the remaining vehicle value rests with you if you keep paying for an auto loan yet lack gap insurance coverage. Understanding your policy now could save you from major stress later, so review your coverage and make sure you’re fully protected.