Does car insurance cover theft?
Car theft is still a big problem for motorists in the UK. From April 2023 to March 2024, there were 129,159 vehicles stolen in Britain[1].
But do all levels of car insurance cover theft? Let’s take a look.
What are the different types of car theft?
Theft of the entire vehicle: This is where someone steals a car and makes off with it. In this case, you will usually be covered by comprehensive car insurance or third party, fire and theft, but always check your policy to make sure.
Theft of parts and accessories: In this situation, thieves won’t steal the entire car but will take parts and accessories. This could include your GPS, wheels, or car stereo. This is typically covered by comprehensive and third party, fire and theft car insurance policies.
Theft of items from inside the car: This may include things like your laptop or smartphone. Usually this won’t be covered by your car insurance, but you may be able to claim on your home and contents insurance.
Types of car insurance that may cover theft
Does comprehensive insurance cover theft?
Fully comprehensive car insurance does what the name suggests and usually covers everything from damage caused by fire and vandalism to break-ins and theft.
For example, if your car was damaged because of a robbery and left you with smashed windows, broken locks, or damaged systems, comprehensive insurance can cover repair costs for all of this. If your car is stolen, fully comprehensive car insurance will usually cover the full market value of your car.
However, there are some things not covered by comprehensive insurance, such as any personal items that have been stolen from your car. Comprehensive cover only applies to permanent and pre-installed parts of the car.
It’s important to always read the fine print and double check with potential insurers to see if you would be covered for theft in the case of different events.
Does third party fire and theft insurance cover theft?
As the name suggests third party fire and theft car insurance does cover theft. It usually covers you if your car is stolen or if it’s damaged in an attempted theft.
Does third party only insurance cover theft?
Third party only car insurance is the lowest level of cover available. It covers you if you were to cause damage to another person’s car or their property – or injure them – whilst driving. But it doesn’t cover you for theft.
When will car insurance not cover theft?
Car insurance doesn’t always cover theft, even if you have fully comprehensive car insurance. This is usually the case if negligence caused the theft. Examples of this could be leaving the keys in the car or failing to lock it.
You may also not be able to claim for theft if you didn’t report it to the police in a timely manner.
The exact specifics will depend on your policy, so it’s important to check the wording carefully to ensure you know what you are and aren’t covered for.
Can I add theft cover if it’s not included in my policy?
The only car insurance policy that will not cover you for theft will be third party only. This is the minimum level of car insurance and covers you and your passengers if you have caused damage to someone else or their property whilst driving.
To get theft cover, you will need to go up to third party, fire and theft or fully comprehensive insurance.
How to report a car theft
If your car is stolen, it’s recommended to:
- Call the police: You’ll need to give them details of the car’s make, model, colour and registration number. Once you report the crime to them, you’ll usually get a crime number which you’ll need for your insurance claim.
- Let your insurance provider know: Contact your insurance provider once you’ve reported it to the police. Have both your crime number and your policy number to hand.
- Inform the DVLA: If your insurance company pays out a claim for your stolen vehicle, you must tell DVLA it’s been sold to the insurance company.[2]
Will my insurance go up if my car is stolen?
Your premium may go up after claiming for a stolen car.
When insurers calculate your premium, they look at risk. This is why factors like your age and type of car impact the cost of your insurance. In this case, they will be looking at the potential risk of your car being stolen again. If nothing has changed and you live at the same address, they will potentially view your new car as being at a higher risk of being stolen. This could cause your premiums to increase.
If you live in a postcode that insurers consider risky, this can also push your premiums up. Although making changes like parking your car off the road or in a secure garage may help reduce the cost of car insurance.
Will I need to pay the excess if my car is stolen?
If you claim on your car insurance after your car has been stolen you will usually have to pay the excess - just as you would with any other car insurance claim.
The excess is the amount you need to pay for a claim before your insurer will pay out. When it comes to renewing your car insurance, you can usually reduce the cost by opting for a higher excess. Just make sure you choose an excess that you can actually afford.
Will I get a courtesy car?
You might expect to be given a courtesy car from your insurer if your car is stolen. However, this isn’t usually the case, and most insurers don’t provide a courtesy car in this situation. You’ll need to check your policy wording to see if this is or isn’t the case.
You may be able to add courtesy car cover as an optional extra on your car insurance.
How long does it take for insurance to pay out on a stolen vehicle in the UK?
According to the Financial Conduct Authority (FCA) your insurer must pay out within three months of your claim – or where all the facts are established for disputed claims. For cut-and-dry stolen car cases, it’s likely your insurer will pay out sooner than three months. This can vary from insurer to insurer.
How much will my insurance pay for my stolen car?
If your car has been stolen and can’t be found – or is found but the damage is too much to repair – your insurer will usually pay out for the value of the car. The exact amount you get depends on your policy, but the payout is supposed to reflect the amount you’d get if you sold your car.
If your car is found and can be repaired, you’ll usually get a payout that covers the repairs.
What happens if your car is stolen and then found in the UK?
If the police find your car, you need to inform your insurer immediately. The police will let you know what’s happened and will detail whether it’s been damaged or is unsafe to drive. They’ll also say whether it’s been used to commit a crime.
The police will usually arrange for your car to be recovered. Often, you’ll need to pay a fee to get it back, but you may be able to claim this on your insurance. If you don’t collect it within 14 days, the police might dispose of it.
Once you get it back, it’s down to your insurer to assess if it can be repaired or if it’s a write-off.
What happens if my car is stolen on finance?
If you have a car on finance (whether hire purchase or PCP) and it’s stolen, you don’t technically own the car, so it’s the finance company that will receive the payout. But you’ll still need to call the police, your insurer and the finance company.