Does car insurance cover theft?

Key Takeaways

• Comprehensive and third-party, fire and theft car insurance usually cover your car if it is stolen, while third-party only usually doesn't

• The amount you receive will depend on the circumstances of the theft and your policy - some policies may also cover you for stolen possessions

• If your car is stolen, report it to the police and your insurer as soon as possible

Does my car insurance cover theft?

Your car insurance may cover theft, but it depends on the type of policy you have - comprehensive car insurance usually covers theft, as well as damage to your own car and third-party claims. Third-party, fire and theft insurance should also cover your car if it is stolen, but third-party only insurance will not usually cover theft of your own car.

The Office for National Statistics (ONS)'s Crime Curvey for England and Wales estimated there were 596,000 vehicle-related theft incidents in the year ending 2025 - however this did represent a fall of 14% compared to the previous year.

Check your policy documents if you're not sure - some policies also include rules on keys, security, personal belongings and excesses.

What types of theft are covered by my car insurance?

The way your insurance will work changes slightly depending on the type of theft that you experience:

• Your vehicle: If the entire car is stolen, this should be covered by your comprehensive or third-party, fire and theft policy

• Vehicle parts or accessories: If thieves have stolen items like your GPS, alloy wheels, catalytic converters or built-in stereos, this should also be covered by your comprehensive or third-party, fire and theft car insurance

• Personal belongings: If your personal belongings are stolen from your car, such as your phone, laptop or sunglasses, these might come under your home contents insurance rather than your car policy. Some comprehensive car insurance policies may include protection for your possessions, but you should check to be sure

When is car theft not covered by my car insurance?

Your insurer may refuse a theft claim if you have not followed the terms of your policy - common reasons for a rejected claim can include:

• Leaving the keys in or near the vehicle

• Leaving the car unlocked or unsecured

• Providing incorrect information when taking out the policy

• Failing to report the theft to the police or insurer within the required timeframe

• Not using agreed security devices or trackers where required by the policy

• Using the vehicle in a way that is not covered by your insurance

Every insurer has different rules, so check your policy documents carefully to understand what is and is not covered.

What should I do if my car is stolen?

Once you've confirmed that the car hasn't been towed, moved or borrowed by someone with permission, report the theft to the police and your insurer as soon as possible. Call 101 or report it online through your local police force.

The police should give you a crime reference number - you'll need this when you contact your insurer to start your claim.

What should I do if parts, accessories or belongings are stolen from my car?

If items have been stolen from your car, report the theft to the police and contact your insurer as soon as possible. You should gather evidence by taking pictures and making a list of anything missing. Collect receipts and proof of ownership/value if you have them, as this will strengthen your claim.

Your insurer may ask for a crime reference number and details of what was stolen before assessing your claim. If personal belongings were taken, check whether it is better to claim through your car insurance or home insurance, depending on the cover available.

How do I make a car theft insurance claim?

Contact your insurer and give them the details of the theft - you'll often need to give them:

• Your policy number

• Your crime reference number

• Your vehicle registration

• The date, time and location of the theft

• Details of your car keys

• Any tracker or dashcam information

• Details of belongings stolen with the car

Your insurer may ask for more information before deciding whether to pay the claim.

How much will my insurer pay if my car is stolen?

Your insurer will usually pay the market value of your car if it is stolen and not recovered - this means what the car was worth just before it was stolen, not what you originally paid for it. The amount can depend on the car’s age, mileage, condition, service history and specification.

According to the Association of British Insurers (ABI), the average claim for theft of and from a vehicle was £11,300 in the first quarter of 2025.

If you disagree with the offer, you can ask your insurer to review it. Evidence such as recent adverts for similar cars may help support your case.

What happens if my car is found after I claim?

If your car is found, your insurer will decide whether it can be repaired or should be written off. If the damage is minor, your insurer might choose to arrange and pay out for repairs. However, if it's badly damaged or not economical to repair, it could be treated as a write-off and your insurer may offer a payout instead.

If your insurer has already paid your claim, the car usually becomes the insurer’s property - ask your insurer what happens next before taking any action.

Do I need to tell DVLA if my stolen car is paid out?

Yes, you must tell DVLA if your insurer pays out for your stolen vehicle. Once your insurer pays the claim, the vehicle is treated as sold to the insurance company.

If you have a private or personalised registration number you want to keep, apply to retain it before telling DVLA that you no longer own the vehicle. You may also be able to get a vehicle tax refund from DVLA.

Will I pay an excess for a car theft claim?

Yes, you'll usually need to pay your policy excess if you make a theft claim. Your excess is the amount you agree to pay towards a claim - this usually includes the compulsory excess set by your insurer, and the voluntary excess chosen by you when you bought the policy.

Check your policy documents to see how much excess applies to theft claims.

Will my premium go up after a car theft claim?

Your premium are likely to go up after a car theft claim - insurers look at your claims history, where you live, where the car is kept and how likely they think future claims are. A theft claim may make you look higher risk, even if the theft was not your fault.

Your no-claims discount may also be affected unless it is protected or your policy says otherwise.

What happens if my car is stolen while on finance?

Tell your insurer and finance company as soon as possible - your insurer will handle the claim in the usual way, but the payout may go to the finance company first. If the payout is less than the amount left on your finance agreement, you may still need to pay the difference.

Guaranteed asset protection, or GAP insurance, can help cover this shortfall if you bought it before the theft happened.

Can I get a courtesy car if my car is stolen?

Probably not. If your car is damaged or undriveable, your insurer may provide a courtesy car, but that doesn’t usually happen if it is stolen while you sort out your claim and either recover or replace your vehicle.

You can, however, sometimes opt for hire car cover as an optional extra. This will cost more – and there will be some limits – but it will give you the peace of mind that if your car does get stolen, you will be able to keep driving in the meantime.

How can I reduce the risk of car theft?

You can't avoid the risk of car theft entirely, but you can make your car harder to steal by doing the following:

• Locking your car and closing the windows

• Keeping keys away from doors and windows

• Using a steering wheel lock

• Parking in a well-lit place

• Using a driveway or garage if you have one

• Keeping valuables out of sight

• Considering a tracker or immobiliser

• Using a Faraday pouch for keyless car keys

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