What Happens If Your Car Gets Stolen With Full Insurance Coverage?

A stolen car, even an insured one, can cost its owner a lot of money.

When a car that is covered by theft insurance is stolen, the owner still is presented with a number of complications. Even in the case of comprehensive coverage, the settlement amount generally will be less than the purchase price of the car.

Features

According to the Insurance Information Institute, car insurance is covered under the "comprehensive" section of an insurance policy. These premiums are set by the insurance companies estimation that the car will be stolen or damaged, and the price that the car would fetch on the market at the time of its theft.

Effects

When an insured car is stolen, the insurance company typically will pay out the price for which the car is currently valued. Usually, the car will have depreciated in value since it was purchased, meaning the payment will be less than the price you paid for it. For example, a car purchased for $20,000 might have depreciated to $18,000 at the time of its theft.

Considerations

According to the Pennsylvania Auto Theft Prevention Authority, the average stolen car, if recovered, will have sustained $7,000 worth of damage. In this case, the insurance company likely will withdraw compensation meted out for theft, and you will have to pay the deductible for having the car repaired.

References

• Pennsylvania Auto Theft Prevention Authority: Auto Theft Myths
• Edmunds.com: Avoiding Auto Theft and Insurance Problems
• Insurance Information Institute: Auto Theft