Does Car Insurance Cover Theft?

Walking out to an empty parking spot where your car used to be is a sinking feeling. Whether your insurance covers it comes down to one type of coverage that a lot of drivers, especially those with older cars, choose to skip.

Comprehensive is the coverage that pays

Auto theft is covered under **comprehensive coverage**, the same part of your policy that handles fire, vandalism, and falling objects. If you carry comprehensive and your car is stolen and never recovered, your insurer should pay out the car's value, minus your deductible. If you only carry liability, which is the legal minimum in many states, theft is not covered at all, and the loss is yours.

What it pays, and what it does not

Comprehensive pays the **actual cash value** of your car, what it was worth the day it was stolen, not what you paid or what you still owe. If you owe more on the loan than the car is worth, that gap falls on you unless you carry **gap insurance**. Personal belongings stolen from inside the car are usually not covered by auto insurance at all, though your home or renters policy might pick them up.

Recovery changes things

If your car turns up later, comprehensive also covers the damage thieves did to it, again minus your deductible. Whether it is gone for good or found stripped, the same coverage applies.

Check your coverage before you need it

The time to find out whether you carry comprehensive is not while standing in an empty parking lot. Put your auto policy through MyPolicyShield and ask plainly whether theft is covered, what your deductible is, and what your car would actually pay out.

Know what you carry before the car is gone, not after.