TL;DR: If your car is stolen, act quickly and follow several key steps to improve the chances of recovery and protect yourself. First, double-check that it wasn’t towed or misplaced – many “stolen” cars turn out to be towed or parked elsewhere. If it’s truly gone, immediately call the police to report the theft. Provide details like the vehicle identification number (VIN), license plate number, make, model, and color. Over 1 million vehicles were stolen in the U.S. in 2023, and Chicago alone saw more than 26,000 thefts in a recent 12-month period. So prompt action helps: police recover more than 85% of stolen vehicles (about one-third are found the same day). Next, notify your auto insurance company as soon as possible (ideally within 24 hours of the theft) to start the claims process. You should also inform your state DMV to register the vehicle as stolen, and if the car is financed or leased, let your lender know. Taking these steps swiftly will increase the likelihood of getting your car back and ensure you meet insurance requirements. For further guidance on insurance after a theft, you can call Insure on the Spot at 773-202-5060 for assistance.
What should you do first when your car is stolen?
Stay calm and report the theft immediately. Begin by confirming the car is actually stolen. Sometimes a car isn’t where you expect because it was towed or parked in a different spot – it’s worth calling local impound lots or double-checking your parking location before panicking. If you rule out towing or a parking mistake, contact the police right away. In most places, you should call the non-emergency police line (for example, 311 in Chicago) if the vehicle is missing and the thief is long gone, or 911 if you believe the theft is in progress or you have immediate information on the culprit. When speaking with police, provide all the details you can: the VIN, license plate number, make, model, color, and any distinctive features of the car, as well as the location and time it was last seen. This information goes into the stolen vehicle report and helps officers begin the search. Make sure to get a copy of the police report or the report number, as you’ll need this for your insurance claim.
Reporting a stolen car promptly is crucial. The National Insurance Crime Bureau (NICB) emphasizes that notifying law enforcement as soon as possible increases the chances of recovery. Police data show that about 34% of stolen cars are recovered on the same day when reported quickly. By filing a report, you also protect yourself in case the thief uses your car in a crime – you’ll have an official record showing you no longer had control of the vehicle. Once the report is filed, officers will typically enter your car’s information into statewide and nationwide stolen vehicle databases. In Illinois, for example, the Secretary of State (DMV) and law enforcement work together to flag stolen cars and match recovered vehicles to their owners.
How do you file an insurance claim for a stolen car?
After contacting the police, your next call should be to your auto insurance company to report that your vehicle was stolen. Most insurers advise filing a theft claim within 24 hours of the incident (or as soon as practical once you have a police report). Provide your insurer with the police report number and the same vehicle details you gave law enforcement. Timely notification is important – your policy likely requires prompt reporting of theft, and it allows the insurer to begin their investigation and assist in the recovery process.
When you file the claim, ask your insurer what information they need. Commonly, they’ll require: a copy of the police report, details about your car (VIN, mileage, any financing or leasing info), the location of all keys, and a list of personal items that were in the car (for documentation, since the car itself – not those belongings – is what the auto policy covers). Cooperate fully and provide any documents promptly to avoid delays.
Be prepared for the claims process to take some time. Having comprehensive coverage doesn’t mean an immediate payout, because insurers must investigate and rule out fraud (unfortunately, the vehicle owner is always a suspect until proven otherwise in theft cases). Additionally, most insurers enforce a waiting period of anywhere from 2 to 8 weeks to see if the stolen vehicle is recovered before they settle the claim. During this period, the insurance company stays in contact with police for updates. State laws often regulate how long a claim can remain open – for instance, if a claim will take more than 30 days to resolve, the insurer may be required to notify you of the delay.
If your car remains missing after the waiting period and all investigations are complete, the insurer will declare it a total loss. At that point, if you have comprehensive coverage, they will pay you the actual cash value (ACV) of the car (its market value at the time of theft) minus your deductible. Keep in mind the ACV may be less than what you originally paid for the car due to depreciation. If you feel the insurer’s valuation is low, you can negotiate or provide evidence of the car’s value (such as listings for similar vehicles). Once the claim is settled, you can use the payout to buy a replacement vehicle.
Even if you only carry liability insurance (no theft coverage), you should still notify your insurer of the situation. While your policy won’t reimburse you for your stolen car in that case, informing the insurer protects you if the thieves cause damage or injuries with your vehicle. For example, if a stolen car is involved in an accident, the insurance company needs to know it was stolen; otherwise, they might initially treat it as if you were responsible. Prompt communication with your insurer ensures your coverage (liability for any third-party damages) is properly managed while the car is out of your possession.
Does car insurance cover a stolen car?
Yes – but only if you have the right coverage. A stolen vehicle is covered under the comprehensive coverage portion of an auto insurance policy. Comprehensive insurance (sometimes part of “full coverage”) covers theft of the vehicle, as well as non-crash incidents like vandalism, fires, or natural disasters. Basic liability insurance, on the other hand, does not cover a stolen car. Liability coverage only pays for damage or injury you cause to others in an accident, not for crimes like theft.
If you carry comprehensive coverage, your insurance will pay you the value of the car (minus deductible) if the car isn’t recovered, or pay for repairs if it is recovered with damage. If you only have liability coverage, the insurance company will not reimburse you for your vehicle’s loss due to theft. Unfortunately, that means you’d have to absorb the financial loss yourself. This is why comprehensive coverage is recommended, especially if you cannot easily afford to replace your car out-of-pocket – and lenders require comprehensive coverage if you have an auto loan or lease, to protect their interest in the vehicle.
To summarize, car theft is covered by insurance only if you purchased comprehensive coverage. If you’re unsure whether you have it, check your policy’s declarations page or ask your agent. After a theft, it’s too late to add coverage for that incident, but you can learn from the experience and consider adding comprehensive coverage going forward for peace of mind.
Do you need to contact the DMV after a car theft?
In many states, the police will automatically enter the vehicle’s details into a stolen car database that the DMV can access. However, contacting the DMV yourself ensures the vehicle’s registration is flagged as stolen. The DMV maintains a database of stolen cars and works with police to reunite recovered vehicles with the rightful owners.
By reporting the theft to the DMV, you create an official record in their system. This can help prevent someone from fraudulently registering or selling your car if a thief attempts to do so. It may also expedite the return of your vehicle if it’s recovered in another state. When you call or visit the DMV, be ready to provide the police report number, your car’s VIN, and your title or registration information. Some states might issue a new title indicating the car is stolen or put a hold on the registration until the car is found. In Illinois, for example, the Secretary of State’s office (which serves DMV functions) works in tandem with law enforcement on stolen vehicle cases, so ensuring they have your report on file is beneficial..
Should you inform your lender or leasing company if your car was stolen?
If your car is financed or leased, the bank or leasing company technically owns or has a financial stake in the vehicle until you pay it off. So, they need to know if the asset is missing. Lenders will coordinate with your insurance company during the claims process. In fact, when a stolen vehicle is declared a total loss, the insurance payout is often made out to both you and the lender. The insurance settlement will be used to pay off any remaining loan balance first (per your loan agreement), and any leftover amount would then go to you.
What you should do is call the lender’s customer service and explain that your car has been stolen. Provide them the police report number and your insurance claim information. The lender may put a hold on your loan payments temporarily or provide guidance while the claim is underway. Continue making your car payments in the meantime unless the lender instructs otherwise – you are still responsible for the loan until the situation is resolved. If the car is recovered and repaired, things may go back to normal (you keep the car and continue the loan). If the car is not recovered and insurance pays out the value, that money will go toward your loan.
Be aware of the possibility of a loan balance that exceeds the car’s value. If you owe more on the loan than the insurance company pays (a situation known as being “upside-down” on the loan), you will be responsible for the remaining balance. For example, if you owe $15,000 but the car’s value was $12,000, the insurance will pay $12,000 minus deductible, and you’d still owe the lender the extra ~$3,000. This is where GAP insurance (if you have it) kicks in – GAP coverage would pay that difference so you’re not out-of-pocket. Lenders often require or recommend GAP insurance for this reason, especially on new cars that depreciate quickly.
Are items stolen from your car covered by insurance?
Auto insurance (comprehensive coverage) will cover the vehicle itself and physical parts that are permanently attached to the car. But if a thief also took your laptop, phone, bag, or other personal belongings from inside the car, those are not covered under the auto policy. Comprehensive coverage might pay for the broken window or damaged door lock from the break-in, but not for the value of your stolen backpack or stereo faceplate.
However, you might have coverage for those items through a homeowners or renters insurance policy. Personal property coverage on those policies typically protects your belongings even when they’re outside of your home – this is often called “off-premises” coverage. For example, if you have renters insurance, you can file a claim for a laptop stolen from your car. Keep in mind that your deductible will apply, and there may be coverage sub-limits for certain categories of items (like electronics or jewelry). So, if the value of the stolen items isn’t very high, it might not be worth filing a separate claim after considering the deductible.
It’s wise to check your home or renters insurance policy for specifics on theft coverage. Some insurers require a police report for stolen items claims, which you would already have from the auto theft incident. Provide a list of the stolen items, with approximate values or receipts if available, to your home/renters insurer. They will determine if the loss exceeds your deductible and if the items are covered. For instance, if a $500 GPS unit was taken and you have a $500 deductible on renters insurance, you wouldn’t get a payout because it doesn’t exceed the deductible.
Prevention tip: Avoid leaving valuables in plain sight in your car to deter break-ins. But if personal items are stolen from your vehicle, remember that auto insurance won’t pay for them – look to your renters or homeowners insurance for possible relief.
What happens if your stolen car is recovered?
If your stolen car is recovered, you should still contact the police and your insurance company immediately. Often, the police will notify you first if they locate the vehicle (make sure your contact info was correct on the stolen vehicle report). Arrange to retrieve the car or have it towed if it’s not drivable. Do not assume you can just start using the car again without clearance – the police may need to release it after any forensic examination.
Once you regain possession, thoroughly inspect the car. Check for any damage to the ignition, windows, body, or tires. Note any missing parts (catalytic converters and airbags are commonly stolen components). Also, look for any personal property the thief may have left behind. It’s wise to wear gloves and use a flashlight to examine the interior and trunk – thieves might leave behind tools, illicit items, or personal information that isn’t yours. If you discover anything suspicious (for example, drugs or someone else’s ID in the car), notify the authorities and do not handle those items.
After assessing the condition, inform your insurer of the recovery. The insurance handling will depend on timing: If the car was found before your claim was settled, the insurer will evaluate the damage. Typically, they will either pay for the necessary repairs to restore the car, or if the damage is extensive, declare it a total loss and proceed to pay you the ACV value (minus deductible) as they would have if the car wasn’t found. You can then decide to repair the car or accept the payout. If the car is repairable, you’ll get it back once fixed (your comprehensive coverage covers theft-related damage).
If the car was recovered after the insurance claim was already settled and you received a payout, then the situation is a bit different. In most cases, the insurance company now technically owns the vehicle (since they paid you for it). The car will likely be given a salvage title and handled by the insurer. You may have an option to buy the car back from the insurer if you want to keep it – often for the salvage value – but this is case-by-case and depends on the condition of the car and state regulations. Discuss this with your insurer; if you haven’t bought a replacement yet and the recovered car is still usable, you might prefer to keep it. This would usually involve returning the claim money (or the portion thereof) and taking ownership of the vehicle again. If you choose not to keep it, the insurer will dispose of the car (through auction or salvage yards).
In all scenarios, update the DMV and cancel any theft alerts once your car is back. Remove the stolen flag from the vehicle’s record to avoid confusion if you drive it. Also, if you had already been issued a payout and then the car is returned to the insurer, make sure the title transfer and any loan payoff are properly handled. And finally, consider this an opportunity to improve the car’s security (repair damaged locks, maybe install an anti-theft device) to prevent future thefts.
How can you prevent car theft in the future?
While no method is foolproof, there are many precautions you can take to reduce the risk of your car being stolen:
Always lock your car and take the keys
This may sound obvious, but a significant number of thefts occur from unlocked cars or when keys/key fobs are left inside. Never leave your vehicle running unattended, even for a quick errand. Modern thieves can steal a car in seconds if it’s unlocked or has the keys accessible.
Park in well-lit, secure areas
Thieves prefer to work in darkness and without onlookers. At night or in high-theft areas, park under streetlights or in attended parking lots or garages. At home, if you have a garage, use it. Otherwise, park in a driveway or a well-lit spot near your residence. Visibility and traffic deter theft attempts.
Hide valuables and personal information
Never leave items like laptops, purses, or shopping bags visible in your car. These attract break-ins, which can sometimes lead to vehicle theft if the thief finds keys or decides to take the car. Keep the glove box closed and clear of any documents that have your address (such as the vehicle registration); a thief knowing your home address is an added risk.
Use anti-theft devices
Consider investing in devices such as a steering wheel lock, a car alarm system, a kill switch, or a GPS tracking unit. Visible devices (like a steering wheel club or blinking alarm light) signal to thieves that your car is harder to steal, potentially causing them to skip it. Tracking systems like LoJack or other GPS units can greatly aid in recovery – some have a 90%+ recovery rate and can locate a car within minutes. Many insurers (including Insure on the Spot) offer discounts for having approved anti-theft devices installed.
Be mindful with keys and fobs
Treat your car keys like cash – don’t leave them lying around in public places or easily accessible at home. Thieves sometimes target valet stands, gym lockers, or even your kitchen counter during a burglary to grab keys. Also, if your car uses a keyless fob, keep it in a safe place (some thieves use signal amplifiers to unlock cars if fobs are near the front door).
Etch and document your VIN
As an extra step, write down your VIN and keep it in your records (not in the car). You can also have your VIN etched on windows or marked on parts – this can deter chop shops from buying your stolen car’s parts, and helps police identify your vehicle. Many police departments or insurance groups offer free VIN etching events.
FAQ
How long does an insurance claim take for a stolen car?
It can take anywhere from a few weeks to over a month for a stolen car insurance claim to be resolved. Insurance companies typically wait a certain period (often 2–8 weeks) to see if the vehicle is recovered before paying out a total loss claim. During this time, they’ll investigate the theft and communicate with law enforcement. State regulations may require the insurer to update you if the process exceeds 30 days. To help things move faster, file your claim promptly, provide all requested documents (like the police report), and stay in contact with your claim adjuster. If your car isn’t found within the waiting period, the insurer will settle the claim by paying you the car’s value (minus your deductible). If the car is recovered sooner, the claim may be adjusted to cover any damage instead of a full payout.
What are the chances of recovering a stolen car?
The odds of getting a stolen car back are fairly high, especially with quick action. According to NICB data, over 85% of stolen vehicles are eventually recovered. The timing of recovery varies – about 34% are found on the same day of the theft (often within hours), and around 45% within two days. After the first few days, the recovery rate gradually increases to that ~85% over weeks or months. Factors that influence recovery include how quickly you reported the theft, the location (some cities have higher recovery rates), and whether the car had any tracking devices. Keep in mind, “recovered” simply means the vehicle was found – it might be in a different condition. Some recovered cars have minimal damage, while others may be stripped of parts or involved in collisions. Promptly reporting the theft to police and providing information like any GPS tracker ID can significantly boost the chance and speed of recovery. Ultimately, most stolen cars are found, but there is no guarantee yours will be. If it isn’t found within a few weeks, the likelihood of recovery diminishes, but it can still turn up even months later.
What if my stolen car is found after the insurance paid out?
If your car is recovered after you’ve already received a theft claim payout, the general rule is that the insurance company becomes the owner of the vehicle (since they compensated you for the loss). In practice, the recovered car will likely be towed to an impound or salvage yard affiliated with the insurer. You should still inform your insurer immediately that the vehicle was found. From there, you might have a couple of options:
- Keep the car: In some cases, you can negotiate to retain the recovered car. This usually means you would return the claim money (or the salvage value) to the insurer and take back ownership of the vehicle. The car will likely have a salvage or rebuilt title going forward. This option could make sense if the car is in decent shape and you’d prefer to have it back instead of the money.
- Let the insurer keep it: If you don’t want the car or it’s heavily damaged, you can let the insurer take it. They will dispose of it, often via auction or for scrap, to recoup some of the costs. You keep the claim money you were paid.
Are items stolen from my car covered by car insurance?
No, not by your auto insurance. A standard auto policy (even with comprehensive coverage) does not cover personal items stolen from inside your vehicle. Comprehensive insurance will cover damage to your car from a break-in (like a smashed window) and the theft of the vehicle itself, but it won’t pay for your stolen smartphone, tools, groceries, etc. Those belongings may be covered under a different policy – typically your homeowners or renters insurance can cover theft of personal property, even when it occurs outside your home. For example, if someone breaks into your car and steals your laptop, you could file a claim on your renters insurance for the laptop (subject to your deductible and coverage limits). You’d need to show it was a theft (the police report is useful here) and provide proof of the item and its value. Keep in mind that making a claim on your home/renter’s insurance could affect that policy’s claims history, so you might reserve it for high-value losses.
What if my car is stolen and I don’t have insurance?
If you have no auto insurance coverage for your stolen car (for instance, you only had the state-required liability insurance, or your policy lapsed), then unfortunately you will not receive any compensation for the loss of the vehicle. You will have to absorb the financial loss personally. Still, you should follow all the same steps: report the theft to the police immediately and notify the DMV. If the car is financed, inform your lender – you remain responsible for the auto loan even if the car is gone. Without insurance to pay off the balance, you’ll need to continue making payments, since the lender has the right to expect full repayment. In some cases, if the thief is caught, you could pursue restitution through the legal system, but realistically that’s a long shot and can take years, if it happens at all. There are also victim assistance funds in some states, but they generally don’t cover property theft – they’re aimed at personal injury or other violent crime impacts, so a stolen car typically wouldn’t qualify.
Not having insurance (or not having the right coverage) in this situation is a tough lesson. You will be out the value of the car unless it’s recovered. If the car is later found, you’ll get it back (in whatever condition it’s in), but any damage or missing parts will be your responsibility to repair. Going forward, consider carrying comprehensive coverage if your vehicle is valuable or in an area with high theft rates – it’s the only way to get reimbursed for vehicle theft. Also, remember that even without comprehensive insurance, you should always notify law enforcement of a theft. They might recover the car, and at the very least, having an official report can help shield you from liability if the thief causes any damage with your car while it’s stolen.