If you’re wondering, does liability insurance cover car theft, the short answer is generally no. Liability insurance covers injuries and property damage you cause to other people, while comprehensive coverage generally protects your own vehicle against theft. In this guide, you’ll learn what insurance covers a stolen car, how much you may receive, what happens if the vehicle is recovered, and what to do after a theft.
Does Liability Insurance Cover a Stolen Car?
No, liability insurance generally does not cover a stolen car. Liability coverage is designed to protect you financially when you are legally responsible for injuries or property damage involving another person.
Liability insurance generally includes:
- Bodily injury liability: Helps cover injuries and related expenses you cause to others.
- Property damage liability: Helps pay for damage you cause to another person’s vehicle or property.
Because your stolen vehicle is your own property, liability coverage generally does not pay for its loss.
For example, if you have liability-only insurance and your $20,000 car is stolen, your liability policy generally will not reimburse you for the vehicle.
What Insurance Covers Car Theft?
Comprehensive insurance generally covers vehicle theft, subject to your policy terms and deductible. It also provides protection against many non-collision losses.
Comprehensive coverage may include:
- Vehicle theft
- Attempted theft damage
- Vandalism
- Fire
- Hail
- Flood
- Falling objects
- Certain animal-related damage
What About Collision Insurance?
Collision insurance generally does not cover theft. It is designed to cover covered damage to your vehicle caused by a collision, such as hitting another vehicle or an object.
A simple way to remember the difference is:
Comprehensive = theft and other covered non-collision losses
Collision = covered collision damage
Liability vs. Comprehensive Insurance for Car Theft
| Coverage | Covers a Stolen Car? | Main Purpose |
|---|---|---|
| Liability | No | Injuries or property damage you cause to others |
| Collision | Generally no | Covered collision damage |
| Comprehensive | Generally yes | Theft and other non-collision losses |
If you want protection against vehicle theft, comprehensive coverage is generally the important coverage to have.
How Much Does Insurance Pay for a Stolen Car?
If your stolen vehicle is covered by comprehensive insurance, the insurer generally bases the settlement on its actual cash value (ACV) rather than automatically paying the original purchase price.
ACV generally reflects the vehicle’s current value, considering factors such as:
- Age and mileage
- Condition
- Equipment and features
- Depreciation
- Comparable vehicles
Your comprehensive deductible is typically subtracted from the covered amount.
For example:
Vehicle ACV: $20,000
Comprehensive deductible: $1,000
Potential settlement: $19,000
The actual payment can vary based on the insurer’s valuation and your policy terms.
What If You Still Owe Money on the Car?
Your insurance settlement may be less than your remaining loan balance.
For example, if you owe $25,000 but the vehicle’s ACV is $20,000 and your deductible is $1,000, the potential insurance payment could be $19,000. You could still owe $6,000 on the loan.
GAP insurance may help cover a qualifying difference between the insurance settlement and your remaining loan or lease balance. GAP coverage is separate from comprehensive insurance and has its own terms and limits.
Does Insurance Cover a Break-In or Stolen Items?
Comprehensive insurance may cover covered damage caused by an attempted theft, such as a broken window, damaged lock, or damaged ignition.
However, personal belongings are different. A laptop, phone, clothing, or other property stolen from your vehicle is generally not covered by standard auto insurance.
Depending on the policy, homeowners or renters insurance may provide coverage for stolen personal belongings.
What Happens If a Stolen Car Is Recovered?
If your vehicle is recovered with covered damage, comprehensive insurance may help pay for eligible repairs, subject to your deductible and policy terms.
If the vehicle has severe damage, the insurer may determine that it is a total loss. The settlement would generally depend on the vehicle’s covered value and policy terms.
If your insurer has already paid your theft claim and the vehicle is later recovered, contact the insurer immediately. Do not assume you can keep or use the recovered vehicle without following the insurer’s instructions.
What If a Thief Crashes Your Car?
A thief crashing your vehicle creates a separate liability issue from the theft claim. You are not automatically liable in every state simply because you own a stolen vehicle.
Potential responsibility can depend on state law and the circumstances, including whether the owner may have been negligent in securing the vehicle.
If a stolen vehicle is involved in an accident, notify your insurer promptly. Serious injury claims or lawsuits may also require advice from a qualified attorney in the applicable state.
What If I Left My Keys in the Car?
Leaving your keys inside does not automatically mean a theft claim will be denied. However, the insurer may investigate how the theft occurred and ask questions about the keys, whether the car was locked, and who had access to it.
Always provide accurate and truthful information when filing a claim.
What Should You Do If Your Car Is Stolen?
Take these steps as soon as possible:
- Report the theft to police and get the case number.
- Contact your insurance company and report the theft.
- Gather your information, including the VIN, license plate, registration, keys, and police report.
- Contact your lender or leasing company if the vehicle is financed or leased.
- Keep records of your claim, documents, and communications with your insurer.
Frequently Asked Questions
Does liability insurance cover a stolen car?
No. Liability insurance generally does not cover theft of your own vehicle. Comprehensive coverage generally provides theft protection.
Does comprehensive insurance cover theft?
Yes. Comprehensive insurance generally covers vehicle theft, subject to the policy, deductible, and applicable terms.
Does collision insurance cover a stolen car?
Generally, no. Collision coverage is designed for covered collision damage, while comprehensive coverage generally covers theft.
Does full coverage insurance cover a stolen car?
If your policy includes comprehensive coverage, a covered theft is generally protected. “Full coverage” is not a standardized insurance term, so check your policy.
Does car insurance cover items stolen from a vehicle?
Standard auto insurance generally does not cover personal belongings stolen from your car. Homeowners or renters insurance may provide coverage depending on the policy.
Final Takeaway
Liability insurance generally does not cover the theft of your own car. Comprehensive coverage is generally the protection that covers vehicle theft. If your car is stolen, the potential settlement is usually based on its actual cash value minus your deductible.
Because coverage, deductibles, and state rules can vary, review your policy or contact your insurer to confirm exactly what protection you have.