Does Car Insurance Cover Theft?

by COUNTRY Financial

Car insurance can cover theft, but only if you have comprehensive coverage added to your policy. It'll help pay for damage incurred during break-ins, the cost of stolen parts or the value of a stolen car itself.

It does not, however, cover personal items inside the car. To protect items inside the car—say, a laptop—from theft, you’ll need personal property coverage, which is part of home or renters’ insurance.

In this article, we’ll help make sense of all this and discuss what car insurance coverage you need to protect your car from all forms of auto theft.

Comprehensive car insurance coverage and theft

Comprehensive coverage is what you want if your car is broken into or stolen. It doesn’t protect personal belongings within the car, which we’ll discuss later, but it can help with the major costs of auto theft after paying your deductible.

A few things to note:

• Comprehensive car insurance is optional and not usually included in standard policies. If you live in a place where auto theft is common or you’re concerned about break-ins, consider adding it immediately.  
• Coverage limits will most likely apply to theft, so be sure to compare your policy’s limits against your car’s worth.

What's protected by comprehensive coverage?

Comprehensive coverage can help reimburse the cost of:

• A stolen vehicle that isn’t recovered
• A stolen vehicle that is recovered (even if it’s recovered, it’ll likely have damage)
• Damage incurred during a break-in, like broken windows or locks
• Damage caused by vandalism
• Stolen parts, like wheels, rims or stereos*

*Comprehensive car insurance usually covers stolen parts as long as they're original equipment (OEM) from the manufacturer. It may not cover theft of custom rims, stereo systems or other aftermarket parts.

How does theft coverage work? 

If your car is damaged by a break-in or stolen, and you have comprehensive coverage, the first thing you should do is file a police report. If the car is gone, they have the tools and experience necessary to help find it.

Next, you’ll file a claim with your insurance provider. An adjuster will determine what the damages are and how much your policy covers. If insurance decides to pay out, you’ll receive an amount to cover the damages minus your deductible.

COUNTRY Financial offers an anti-theft discount, which is a discount on your auto insurance if your vehicle is equipped with an alarm or anti-theft device.

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

Personal items stolen from within your car are protected by personal property protection, which is actually part of your home insurance. Neither standard car insurance policies nor comprehensive coverage will help. If someone breaks into your car and steals your laptop, phone or other valuable items, you’ll file a claim through your home insurance, renters insurance or condo insurance policy, each of which includes some amount of personal property protection.

It’s for this reason we recommend you don’t leave valuable items in your vehicle for long. Be sure to lock your car and either take valuable things with you or hide them.

Final thoughts

Auto theft is a broad topic that might be frightening just to think about. But with the right coverage, you and your car can be protected.

If you’d like to know more about car insurance and theft coverage, talk to your insurance agent today—they can help you determine how much coverage you need and answer any questions.

Updated 3-27-25