Good news: When you add comprehensive coverage to your policy, you’re covered for theft—whether someone swipes your whole car or just valuable parts (like your catalytic converter).
Let’s break down how car insurance handles theft.
TL;DR
- Comprehensive coverage protects you from theft
- File a police report and contact your insurer right away if you’re dealing with theft
- If your stolen car isn’t recovered, your insurer pays the actual cash value (minus your deductible)
- Anti-theft devices—many cheap and easy to install—can help keep thieves away
How does car insurance cover theft?
Here’s how car insurance protects you from theft.
Comprehensive coverage
Comprehensive coverage protects you from theft—your whole car or just parts of it. If your car gets stolen, this coverage pays you the actual cash value (what your car was worth right before the theft) minus your deductible. Actual cash value (ACV) is what your car’s worth at the time of theft, factoring in depreciation. The math: ACV = replacement cost minus depreciation.
Temporary transportation
Most insurers wait 30 days after a theft claim before deciding on compensation—giving law enforcement time to find your car.
You still need to get around though. At Lemonade, with the right coverage, you’re covered for things like rental cars starting 48 hours after you report the theft.
When does car insurance cover theft?
Comprehensive coverage protects your car from theft. This optional coverage handles non-collision incidents like stolen cars, break-ins, or stolen parts like mirrors or catalytic converters. While comprehensive isn’t legally required, your lender might require it if you lease or finance your car.
Here’s how it works: You bought your car five years ago for $20,000. One night, it gets stolen from your driveway. By now, your car’s worth $16,000 after depreciation. You have comprehensive coverage with a $500 deductible, file a police report, and the car’s never found.
With an approved claim, your insurance pays you $15,500—that’s the car’s ACV ($16,000) minus your deductible ($500).
You’ll need a police report and detailed theft info when filing your claim. Also, personal items stolen from your car—laptops, bags, whatever—aren’t covered by car insurance. For those, file with your renters or homeowners insurance.
When is theft not covered by car insurance?
Car insurance won’t cover theft without comprehensive coverage. If you only have liability insurance—the bare minimum in most states—you’re not covered for theft.
Theft claims might also get denied for negligence, like:
- Leaving doors or windows unlocked
- Leaving keys in the ignition
- Parking in high-risk areas repeatedly
- Ignoring or disabling security devices
- Skipping repairs that compromise security (broken locks, busted alarms)
- Not reporting theft quickly
- Letting an unlicensed or drunk person drive your car before it’s stolen
Which states have the highest rates of car theft?
DC has the highest car theft rate, followed by California. Vehicle thefts dropped 23% in the first half of 2025 compared to 2024. While theft rates are falling, it’s still happening—and comprehensive coverage helps. Here are the top ten states with the highest theft rates in the first half of 2025.
| State | Theft rate per 100,000 residents |
|---|---|
| District of Columbia | 373.09 |
| California | 178.01 |
| Nevada | 167.68 |
| New Mexico | 167.54 |
| Colorado | 149.04 |
| Missouri | 142.17 |
| Maryland | 136.48 |
| Texas | 123.83 |
| Alaska | 117.41 |
| Washington | 115.20 |
How can I prevent car theft?
Thieves want quick and easy. Make it harder to steal your car with an anti-theft device, and they’ll likely move on.
Here are some deterrents to consider:
| Anti-theft device | How it works | Average cost |
|---|---|---|
| Steering wheel lock | Clamps onto your steering wheel, locking it in place and serving as a clear visual warning | $20 to $50 |
| Electronic immobilizer | Built into your ignition system—prevents the engine from starting without the correct key | $25 to $50 |
| Car alarm | Uses sensors to detect unauthorized entry, triggering loud noises and flashing lights | $150 to $250 |
| Vehicle tracking system | Uses GPS to track your car’s location in real time | $15 to $40 |
| Tire locks | Secure around your tire to prevent movement—a strong visual deterrent | $30 to $100 |
| VIN etching | Engraves your VIN onto windows and body panels, making stolen parts harder to sell | $200 to $400 or more |
| Kill switch | Interrupts power to fuel pump or ignition—hidden switch you activate before driving | $10 to $50 |
| Smart keys | Automatically unlock doors and start engine—harder to steal without the smart key | $100 to $500 or more |
| Dash cameras | Records video footage that can help police identify thieves | $50 to $500 or more |
Bonus: At Lemonade, built-in safety tech like these examples can help you score car insurance discounts, depending on your state.
What should I do if my car or its parts were stolen?
If your car or parts get stolen, stay calm. It’s stressful, but these steps will help you sort things out quickly.
- File a police report: Call police immediately with all relevant info—make, model, VIN, theft details. You’ll get a case number that you’ll need for your insurance claim.
- Contact your insurer: Call right away to start the claims process. Have your police report number and policy details ready.
- Document everything: Take photos of the scene, damage, or break-in evidence to strengthen your claim.
- Arrange transportation: Get a rental car or other transport if it’s covered by your policy.
At Lemonade, our digital claims process is designed to be simple. Submit your claim through the app with AI Jim, and it goes straight to one of our claims advocates for a fast review.
Before we go…
Theft sucks, but the right car insurance policy protects you from financial losses and headaches. Comprehensive coverage safeguards your car, ensures quick reimbursement, and covers stolen parts.
Ready to stay protected? Click below to start your free quote.
FAQs
Does car insurance cover attempted theft?
Yes, comprehensive coverage typically covers damage from attempted theft, like broken windows or damaged locks. But it won’t cover personal items stolen from the car—your homeowners or renters insurance handles that.
What happens if my stolen car is later recovered?
How can I prevent catalytic converter theft?
Park in well-lit or secure spots when you can. Add an anti-theft device like a catalytic converter lock or shield. Engraving your VIN onto the converter discourages thieves since it’s harder to sell. A car alarm that triggers with tampering adds extra protection.
What if my car is stolen and I still owe loan payments?
If your stolen car has an outstanding loan, your insurer pays the ACV minus your deductible, but you’re still responsible for any remaining balance.
When should I file a police report if my car is stolen?
File a police report immediately when you discover your car’s missing—your insurer will require it. Delaying can complicate your claim. Give police all relevant info:
- Make
- Model
- Color
- License plate number
- VIN
- Location last seen
Also share theft circumstances and any evidence like security footage or witness info.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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