Does Insurance Cover Car Theft?

About 23,135 vehicles were stolen in Chicago in 2024. In this city, vehicle theft rates in 2024 were lower than in 2023. However, they are still more than double what they were during pre-pandemic levels. If you experience vehicle theft or live in an area with high theft rates, you may be wondering, “Does car insurance cover vehicle theft?”
Comprehensive coverage can help if you ever have to deal with your car being stolen. Adding comprehensive coverage to your policy could help you:

• Offset the costs of your stolen vehicle
• Replace certain stolen parts
• Cover the costs of repairs after a theft, break-in, or vandalism

It’s important to learn what your auto insurance policy covers when it comes to car theft. Since comprehensive coverage typically covers you for losses related to your stolen vehicle, it’s a car insurance option many drivers choose.
Source: CBS News

How insurance covers car theft

Comprehensive coverage helps pay for damages or losses to your vehicle not caused by traffic accidents. Examples of events covered by comprehensive coverage are:

• Theft

• Vandalism

• Natural disasters such as floods, fires, and severe storms

• Animals damaging your car

• Falling objects, such as tree branches or hail

Having the minimum insurance required by the state won’t cover your stolen vehicle. Minimum insurance requirements often cover injuries and damage you cause to another person during a collision.

What happens if your car is stolen and not recovered?

If your car is stolen and not recovered, you’ll have to pay to replace it out of pocket, unless you have comprehensive coverage. If you have it as part of your policy, comprehensive coverage will help pay the actual cash value of your vehicle at the time of the crime, minus your deductible.

The actual cash value (ACV) of your car is how much your car is worth at the time of theft. Your vehicle depreciates as time goes on, due to regular wear-and-tear, as mileage increases, and as new car models get made. This value takes those factors into account.

Remember that you’ll have to cover the deductible before your insurance covers the rest of the ACV. For example, if your comprehensive coverage deductible is $500, you’ll have to pay that amount out-of-pocket before the insurance policy covers the rest. Insurance companies typically have a waiting period before any payment is made to give time to law enforcement to attempt to recover your vehicle.

At Illinois Vehicle Insurance Agency, LLC (Illinois Vehicle), we’ve been helping drivers find affordable auto insurance for 50 years. Contact our auto insurance agencies in Chicagoland if you want to learn how to upgrade your insurance policy.

What to do if your car is stolen: Step-by-step guide

Here are five steps you can take if your vehicle was stolen:

1. Contact the police

File a report with law enforcement as soon as possible. Keep a copy of the report and any case numbers you are given. You’ll need to provide details such as:

• Your vehicle’s license plates, registration, VIN number, model, make, year, and color
• Where and when you last saw your vehicle
• Any of your car’s identifiable characteristics. For example: Does your car have any dents, scratches, missing hubcaps, decals, etc.?

2. Notify your insurance company

Let your insurance company know about the theft. You can provide them with the case number from your police report. If you have comprehensive coverage, your policy will kick in after the insurer has confirmed your car was stolen and after you pay the deductible.
Even if you don’t have comprehensive coverage, you should still report the theft to your insurance company. Telling your insurer also helps in case your car is found damaged later or involved in a crime.

3. Use GPS tracking or theft recovery tools

If you have a GPS tracking device in your vehicle, contact the GPS service provider and let law enforcement know.

4. Check surveillance cameras & witnesses

Ask any witnesses for any details they can provide. It could also be helpful to ask nearby businesses or homeowners if they have any street-facing footage that may help law enforcement locate your vehicle.

5. Check online listings for your car

It’s helpful to check online marketplaces or resale websites to see if your vehicle is listed there. You can notify law enforcement if you see it listed.

Vehicle Theft Prevention Tips

Having your car stolen may not be something you worry about until it happens. Bad actors continue to find ways to steal vehicles, including reprogramming key fobs and switching license plates. Despite this, you can help protect yourself from becoming a victim of car theft by securing your vehicle.

• Lock your doors: This is the first step in deterring thieves from getting into your vehicle.
• Remove your keys from the vehicle: Avoid leaving the keys inside your car or the ignition on, even in your own driveway. A running car is an easy target.
• Do not leave a spare key near your vehicle: Some drivers may leave a spare key in the glove box. However, bad actors know where to look.
• Close the windows: Open windows leave easier access to the inner door locks.
• Park in well-lit areas: Hidden areas away from traffic may lead to a higher theft risk.
• Install an audible alarm system and anti-theft device: The noise these devices make can scare off a potential thief.
• Install a tracking device: This adds a layer of protection that can help the authorities in case of theft.

FAQs:

Which cars are stolen the most?

In Chicago, bad actors are targeting a lot of high-end cars in 2025, according to Chicago Police Commander Andrew Costello. Some of these include Jeeps, Dodges, and luxury Lexus. Kias and Hyundais were brands also targeted in the city.

Can I track my stolen car with GPS?

If you have a GPS system in your car, you should track it. However, update the authorities and let them know the location of your vehicle. Tracking it to the location on your own could endanger you or cause legal issues.

Will insurance cover my stolen car?

If you have comprehensive insurance, your policy will most likely help offset the costs of your stolen vehicle up to the ACV (actual cash value) minus your deductible.
Car insurance, however, doesn’t cover any lost personal items left in the vehicle, such as a laptop or cellphone. You may need renter’s or homeowner’s insurance to prevent those financial losses.

How long does it take to recover a stolen vehicle?

The time it takes to recover a stolen vehicle depends on various factors. Usually, reporting it quickly, having a GPS system, and making use of any surveillance cameras or helpful witnesses can speed up the process.
If you don’t have comprehensive coverage and you’d like to review or change your car insurance policy, get in touch with Illinois Vehicle. Our team can generate quotes from multiple carriers to help you find the best coverage for your unique needs.
If you’d like to find out how to upgrade your policy, call us at 630-581-4805, stop into one of our 43 stores throughout Chicagoland, or get a free auto insurance quote online.
Disclaimer: ​
This material is for general informational purposes only. The products, services, and discounts referenced herein are not available in all states or from all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all cases, the actual language of the policy contract prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.