Good news: When you include comprehensive car insurance on your policy, you’re protected against theft-related losses—like if your car gets stolen, or a pesky thief steals valuable parts from your car (like a catalytic converter).
Let’s take a look under the hood at how car insurance covers theft.
TL;DR
- Your car insurance covers theft if you have comprehensive coverage
- If you’re dealing with a theft claim, make sure to file a police report and let your insurance company know right away
- If your car gets stolen and can’t be recovered, your insurer will pay you the actual cash value of the car if you have comprehensive coverage
- There are plenty of anti-theft devices you can buy, some cheap and easy to use, that can help keep car thieves away
How does car insurance cover theft?
Here’s how car insurance can protect you against theft.
Comprehensive insurance
Comprehensive coverage protects you from theft, whether it’s your whole car or just certain parts. If your car gets stolen, this coverage typically pays you the actual cash value —what your car was worth right before the theft—minus your deductible. Actual cash value (ACV) is what your insurance determines your car is worth at the time of an accident or theft, factoring in depreciation. The formula? ACV = Replacement cost minus depreciation (the loss of value over time from wear and tear).
Temporary transportation
When it comes to car theft, most insurers will wait for a period of 30 days after a claim to make a compensation decision (aka, whether you’ll be compensated for the loss of the car). This allows time for law enforcement to recover the car.
In the meantime, you’ll still need a way to get around, and at Lemonade, with the right coverage, you’ll be eligible for compensation for things like a rental car, starting 48 hours after you report the theft to us.
When does car insurance cover theft?
Comprehensive coverage is a smart way to protect your car from theft. This optional coverage covers non-collision incidents like stolen cars, break-ins, or even stolen parts like mirrors or catalytic converters. Keep in mind that while comprehensive coverage typically isn’t legally required, it may be required by your lender if you lease or finance your car.
Picture this: You bought your car five years ago for $20,000. One night, it gets stolen right out of your driveway. By the time it’s taken, your car’s value—after depreciation—has dropped to $16,000. You included comprehensive coverage on your policy when you covered your car five years ago with a $500 deductible, you file a police report for your stolen car, and unfortunately, the car isn’t found.
In the case of an approved claim, your insurance pays you $15,500—that’s the car’s ACV ($16,000) minus your deductible ($500).
It’s important to note, you’ll almost always need to provide a police report and detailed information about the theft when filing your claim (more on this later). Additionally, personal items stolen from your car, like laptops or handbags, aren’t covered by car insurance. To cover your personal items from theft, you’ll need to file a claim with your renters insurance or homeowners insurance.
When is theft not covered by car insurance?
Car insurance won’t cover theft unless you have comprehensive coverage in your policy. So, if you only have liability insurance—which is usually the bare minimum required in most states—you won’t be covered for theft-related losses.
Theft claims may also be denied due to negligence (AKA, something you did that possibly led to the theft), like:
- Failing to lock your car doors or windows
- Leaving your keys in the ignition
- Persistently parking in high-risk areas
- Ignoring or intentionally disabling security devices
- Neglecting necessary repairs or maintenance that could compromise your car’s security, like broken locks or malfunctioning alarms
- Not reporting the theft promptly
- You knowingly let an unlicensed or intoxicated person drive your car, after which it’s stolen
Which states have the highest rates of car theft?
The District of Columbia has the highest rate of car theft, followed by Colorado. In 2024, 850,708 cars were stolen across the US, decreasing 17% since 2023. While car thefts might be going down, there’s still a ton of cars getting stolen across the country. Let’s check out the top ten states with the highest incidents of car theft.
| State | Car theft rate in 2023 per 100,000 people |
|---|---|
| District of Columbia | 1,150 |
| Colorado | 583 |
| Nevada | 573 |
| Washington | 554 |
| California | 534 |
| New Mexico | 490 |
| Missouri | 442 |
| Maryland | 428 |
| Oregon | 394 |
| Texas | 383 |
How can I prevent car theft?
Thieves like things quick and easy. The more difficult you can make it to steal your car—like using an anti-theft device—the more of a chance that they’ll leave your wheels alone.
Here are some possible deterrents to consider:
| Anti-theft device | How it works | Average cost |
|---|---|---|
| Steering wheel lock | Clamps onto your steering wheel, locking it in place to stop theft and serving as a clear visual warning | $20 to $50 |
| Electronic immobilizer | A security feature integrated into a car’s ignition system, it prevents the engine from starting unless the correct key, which has a unique transponder code, is used | $25 to $50 |
| Car alarm | Uses sensors to detect unauthorized entry or movement, triggering loud noises and flashing lights to scare away thieves and alert nearby people | $150 to $250 |
| Vehicle tracking system | Uses GPS technology to track a car’s location in real time | $15 to $40 |
| Tire locks | Works by securing around a car’s tire to prevent it from moving, acting as a strong deterrent against theft or unauthorized use | $30 to $100 |
| VIN etching | Engraving the car identification number (VIN) onto various parts of the car, such as windows and body panels. This can make it harder for thieves to sell stolen cars or their parts | $200 to $400 or more |
| Kill switch | An electrical device interrupts the flow of electricity to the fuel pump or ignition system, preventing the engine from starting. It can be hidden in the car, requiring the driver to activate it before taking off | $10 to $50 |
| Smart keys | Can automatically unlock the doors and start the engine without the need for a traditional key, making it more challenging for a thief to steal the car without the smart key | $100 to $500 or more |
| Dash cameras | Records video footage of potential thieves, which can help the cops find who stole your car | $50 to $500 or more |
Wondering if there’s other perks of having an alarm system or tracking device in your car (besides protecting your car against theft)? At Lemonade, built-in safety tech such as the examples mentioned above, can help you score extra car insurance discounts, depending on your state.
What should I do if my car or its parts were stolen?
If your car or one of its parts gets stolen, the first thing to do is stay calm. It’s a stressful situation, but following these steps can help you sort things out quickly.
- File a police report: Contact the police right away and provide them with all the relevant information you have about the stolen car, including your car’s make, model, VIN, and any details about the theft. Once the police report’s filed, you’ll receive a case number. Keep it! This case number will be necessary when you submit a theft claim to your insurance company.
- Notify your insurance company: Inform your insurance provider immediately to start the claims process. You’ll need your police report number and policy details.
- Document everything: Take photos of the scene, damaged property, or evidence of a break-in to strengthen your claim.
- Find alternative transportation: Arrange for temporary transportation, like a rental car or a bus pass, if it’s included in your coverage.
At Lemonade, we designed the digital claims process to be as intuitive as possible. Just submit your claim through the app with AI Jim, and it’ll go straight to one of our claims advocates for a fast and thorough review.
Before we go…
Theft can feel like a nightmare come to life, but with the right car insurance policy, you can protect yourself against financial losses and headaches. Comprehensive coverage safeguards your car, ensures quick reimbursement, and even covers stolen parts.
Ready to stay protected against theft and more? Click below to start your free quote today.
FAQs
Does car insurance cover attempted theft?
Yes, comprehensive coverage typically covers damage caused by attempted theft, like broken windows or damaged locks. However, it won’t cover personal items stolen from the car. Your homeowners insurance or renters insurance policy covers the costs to replace stolen personal belongings.
What happens if my stolen car is later recovered?
If your car is recovered after a theft claim is settled, your insurer might return the car to you and adjust the compensation. However, if the car is too damaged, it may remain with the insurer as a total loss.
How can I prevent catalytic converter theft?
To help prevent catalytic converter theft, try parking in well-lit or secure spots whenever you can. Adding an anti-theft device like a catalytic converter lock or shield is a great way to boost protection.
Engraving your car’s VIN onto the converter can also discourage thieves since it makes it harder to sell. And if you want extra peace of mind, think about getting a car alarm that goes off if your car is tampered with.
What if my car is stolen and I still owe loan payments?
If your car is stolen and you still owe money on a loan, your insurer will reimburse the car’s ACV minus your deductible, but you’ll still be responsible for any outstanding balance.
When should I file a police report if my car is stolen?
It is essential to file a police report immediately when you realize that your car is missing and might have been stolen—your insurance company will likely require it. Delaying the filing of a report may lead to complications when it’s time to submit your claim.
Filing a police report involves providing the police with all relevant information about the stolen car. That means:
- Make
- Model
- Color
- License plate number
- Vehicle identification number (VIN)
- Location that it was stolen from or last seen
You should also tell the cops about the circumstances surrounding the theft and any potential evidence—like doorbell camera footage—or witnesses who may have spotted something.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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