Does Insurance Cover You If Your Car Is Stolen?

Find out if your insurer will help you with a car theft claim

Man breaking into a automobile through the door

Auto theft is one of the many threats to your vehicle. Making sure you are covered when you are considering insurance can help lower the risk and costs of a stolen car.

The Ontario government has allocated $51 million for a three-year period to combat the rising rate of auto theft, which has spiked by 14% in the last year, as of May 2023. Stats show a car is stolen every 48 minutes in the province, which leads to an increase in Ontario car insurance.

Even with the advancements in technology, such as the Tag tracking system, taking preventative measures to protect your automobile from theft can make a difference.

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In this blog post, we’ll delve into the importance of insuring your vehicle against theft and how it can save you from a world of trouble.

What does insurance cover if your car is stolen?

If you have the right insurance in place, it will cover an automobile that has been involved in a theft.

Protection against automobile theft is not included in a basic auto policy. However, with optional packages such as comprehensive insurance you will be covered if your vehicle is stolen.

This type of endorsement will help :

  • Replace a stolen vehicle
  • Replace parts that are stolen or damaged
  • Repair damages to your automobile from theft or a break-in

What are my options for car theft insurance?

You can add protection against auto theft by adding any of these additional modifications to your insurance :

    1. Comprehensive : This pays for the cost to repair or replace your automobile as a result of unforeseen situations.
    1. All Perils : In addition to theft protection, it provides protection against loss if your vehicle is taken by someone living in your home.
    1. Specified Perils : If you don’t want to add comprehensive but want theft protection, you can add a specified peril.
    1. Gap Insurance : Comes in handy during total loss claims, such as a stolen car. It is the difference, or gap, between how much your vehicle is worth and how much you owe.

If your vehicle is among the top most stolen vehicles, you may see a premium surcharge. Insurers are looking for avenues to help combat the rising costs of claims for high-risk vehicles. Some companies are offering incentives for installing anti-theft devices.

What do you do if your car is stolen?

Once you are positive your vehicle has been stolen, contact the police immediately to file a police report and follow their instructions. Call your insurer to inform them about the situation. Contacting them also protects you if your automobile is used to cause harm or commit a crime.

Here are the three key steps to take if your vehicle has been stolen :

    1. Be sure your vehicle is stolen : While your first reaction will be to call the police immediately, take a few minutes to consider if it was actually stolen. Could it have been towed? Did you lend it to someone? Who else do you know who has access to your keys? Could it have been repossessed?
    1. Call the police : Call your local police to start the investigation process. You will be expected to provide a detailed explanation of your vehicle, including the make, model, license plate, VIN, and details surrounding the event. Also notify the police of technology that may be able to help them track down your vehicle, such as the telematics system.
    1. Call your insurer : As soon as you have filed a report, call your insurer. This will protect you if it is used in a malicious manner. Provide as much information as possible, including personal items that were inside the car at the time.

Protect your car from theft with auto insurance

We’ve got you covered against theft with best rates and coverage from the top providers in Canada. Get started by comparing car insurance quotes online or give us a call. We’ll make sure you’re protected against theft for a great price!

Red car driving in the country

How do you file a claim for a stolen car?

When you file a car insurance claim for a stolen vehicle, expect your insurer to open an investigation.

You will be expected to provide the following information :

  • When and where the incident occurred : The time, date and location it was stolen.
  • Vehicle details : Year, make, model, kilometers, other distinguishing marks (stickers, scratches, etc.).
  • Police report : Insurers will want a copy of your police report.

How long does the insurance claims process take for a stolen car?

On average, it takes 11 days for an automobile to be found and 30% of recovered vehicles come back with damages.Most companies have a minimum waiting period before closing the claim. Typically it is 30 days. This happens to see if your vehicle can be recovered. Since companies are different in how they handle claims, ask them about the expected time frame.

How much do you get paid by insurance if your car is stolen?

If your automobile is stolen and not recovered, it will be considered a total loss. You will work with your insurer to agree on the market value or actual cash value (ACV). This is the amount you will be paid out. You will not be reimbursed for the original value of the vehicle or the cost of a replacement. Read This Before You Attend Your First Insurance Convention

How does auto theft affect your insurance costs?

Auto theft can affect how much you pay for insurance. It costs drivers, companies and the government millions of dollars annually. It is impacted by many factors such as :

    • Where you live : Car insurance in Toronto and other larger cities like Mississauga and Ottawa are known more car theft. If you live in a neighbourhood that is known for a high amount of automobile thefts, you can expect higher premiums.
    • The automobile you drive : Automobiles that are common targets for theft cost more to insure. Each year the IBC puts out a list of the most stolen cars in Canada.

Tips to prevent automobile theft

Auto theft is preventable. In fact, nearly half of thefts are due to driver error – leaving the doors unlocked, keys in the ignition, etc. Follow these prevention tips to lower the chances of your automobile being involved with theft :

    • Always lock your vehicle : Make sure all doors are locked before you leave your vehicle.
    • No spare key : Never leave a spare key in your vehicle or any easy place to find.
    • Never leave the it running : Never leave your keys in the ignition or the car running without someone inside.
    • Park in the garage : If you have a garage at home, use it.
    • Keep windows rolled up when parked : Always close your windows and sun roof before exiting.
    • Park in well-lit areas : Always park in well-lit and high traffic areas, especially at night.
    • Invest in anti-theft devices : Installing a theft prevention device will make it more difficult to steal, less of a target for thieves, and you could qualify for auto insurance discounts.
    • Keep valuables out of plain sight : Never leave valuables, such as your phone, wallet, or shopping bags where people can see them.
    • Make sure you have the correct insurance : If you are not sure if you have auto theft protection, talk with an advisor today.

Stolen Cars And Insurance FAQs

Does insurance cover stolen cars if keys are left in the vehicle?

It is a common myth that companies will not cover you if the keys are left in the vehicle. This is not true. Whether you left your vehicle unlocked, have a spare key in your glove compartment, or even left the keys in the ignition, in most cases, your claim will be settled. It could be denied, however, if there is a history of auto theft. How Do Insurance Agent Commissions Work?

Does your auto policy cover theft of personal property?

No. Personal belongings such as your phone, GPS, car seats, wallet, and other items are not covered, but they may be entitled to reimbursement under contents insurance. You can also get coverage for personal belongings through home or tenant insurance. You may have to pay a second deductible if you file a claim for loss of personal belongings.

What happens if my car is stolen and it’s still being financed?

Until your car loan is paid in full, you are still obligated to make payments, even if it is not recovered. Your payout can be directly applied to help pay off your car loan. If there is still a balance owing after you’ve paid the claim amount to your finance company, you will be responsible for paying the difference out of your pocket, unless you have gap insurance.

What happens if my stolen car is recovered during the claims process?

If your vehicle is recovered, your insurer will cover any damages under your comprehensive add-on. You are responsible for paying the deductible.

Securing your vehicle with car theft coverage

Car theft is an unfortunate reality that no car owner can completely eliminate the risk of. Each year, automobile theft costs Canadians close to $1 billion, including $542 million for insurers to fix or replace stolen vehicles. Not sure if you have car theft on your policy or want to make sure you’re covered for additional risks such as catalytic converter theft? Don’t leave anything to chance – speak with our team today.

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