Does car insurance cover theft?

Yes, if you have comprehensive coverage on your policy, auto insurance can help pay for your stolen vehicle if you don't find it. Comprehensive coverage is optional, so you won't be covered if you only have your state-required coverages.

5 to readUpdated November 19, 2021

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Key takeaways

Comprehensive coverage, which is optional, covers car theft, vandalism, and damage to your car during a theft
Your homeowners or renters insurance policy may cover items stolen out of your vehicle, up to your coverage limits, but auto insurance does not

Man in a mask driving away with a stolen car

How does insurance cover a stolen car?

Comprehensive car insurance protects you if your vehicle is stolen. However, the specifics of what and how you're covered may depend on your insurer and the details of your policy.

A common misconception is that you must carry "full coverage car insurance" to be insured against auto theft. Although there's not technically a full coverage insurance product, many lenders define full coverage as including both comprehensive and collision on your policy. However, depending on your insurer, you can purchase comprehensive coverage separately from collision coverage; it typically costs less and protects you from theft.

Because comprehensive coverage only costs about $19 per month on average at Progressive, it's highly recommended for your protection and peace of mind in case your vehicle gets stolen.* Comprehensive also covers car vandalism and glass breakage, which can coincide with theft. Get a free car insurance quote online, or call 1-866-749-7436 to see how affordable it can be.

Here's how insurance can cover car theft scenarios:

Stolen vehicle that's not found:
If someone steals your vehicle and it's not found, your insurer may cut you a check for your car's actual cash value (ACV), minus your deductible, if you have comprehensive coverage. This may be true even if the car was stolen with the keys in it.
Stolen vehicle that's recovered:
If your stolen car is found, auto comprehensive coverage may cover any theft-related damage like broken windows and other vandalism.

According to the National Insurance Crime Bureau, law enforcement or other agencies recovered more than 85% of stolen vehicles in 2023. If your car is found after you've filed a theft claim, notify your insurer immediately. They will need to check the vehicle for damage and adjust your payout accordingly.
Items stolen out of vehicle:
Items stolen out of your vehicle won't be covered by car insurance, but they may be covered by your property insurance policy. This can include items like your handbag, smartphone, or laptop.

Are vehicle upgrades protected if my car is stolen?

Most auto policies won't cover the replacement or repair of aftermarket, custom parts, and car modifications over a certain amount. However, custom parts and equipment (CPE) coverage — available at Progressive and most insurers for an added cost — can cover stolen parts or equipment. For instance, if someone steals your newly added 24-inch rims, you'll likely need CPE coverage to insure them.

At Progressive, comprehensive coverage will insure up to $1,000 in repair or replacement costs for custom parts and equipment. Repairs or replacements above and beyond $1,000 require CPE coverage, which is typically inexpensive.

Example:You spent $900 on a custom paint job and $800 on a new stereo. Both need to be replaced after your car was stolen and then found. You have comprehensive and CPE coverage. On top of the $1,000 your comprehensive could pay out, you'd get an extra $700 from CPE to fully cover the new paint job and replace the new stereo.

How does an insurance company determine the value of a stolen vehicle?

It differs by insurer and policy, but typically, car insurance companies determine the value of a stolen vehicle by using its actual cash value (ACV). The ACV is what your car is worth after factoring in its depreciation (including its age, mileage, condition, and more). This calculation can be complex, and at Progressive, we work with a third party to determine the value of a stolen car. You can get an idea of your car's value by using this car depreciation calculator.

Your vehicle's ACV may not be sufficient to pay off your car loan or lease due to factors like interest and depreciation. If the amount you owe exceeds your car's ACV, consider purchasing gap coverage, which can cover the difference between the balance owed and the ACV. At Progressive, we offer a similar coverage called "loan/lease payoff" coverage. It covers up to 25% of your vehicle's value, depending on your state and situation.

Does auto insurance cover theft of personal items from my car?

No, your auto insurance won't cover theft of personal items from your vehicle, such as your laptop, briefcase, or cell phone. However, your renters or homeowners policy may cover personal belongings stolen from your car, even if someone stole them while the car wasn't on your property. Electronic device insurance can also cover stolen cell phones, laptops, and other devices you choose to cover.

Pro tip:

Some insurers offer car insurance discounts for vehicles with manual and passive alarms or tracking devices. You may even earn a discount if your car's vehicle identification number is engraved on the window or door glass. Progressive offers an anti-theft discount in some states. Eligibility varies by state and requires comprehensive coverage.

When won't auto insurance cover a stolen car?

You won't be able to file a claim for a stolen car if you don't have comprehensive coverage. You'll be responsible for paying out of pocket to replace or fix your car.