Having your car stolen is one of the most stressful experiences you can face as a vehicle owner. It not only disrupts your daily routine but can also cause a significant financial loss. Naturally, when you buy car insurance, you want to know: Does insurance cover stolen vehicles? In this article, you’ll learn how different types of car insurance policies cover theft, what steps to take if your car is stolen, and how you can protect yourself from vehicle theft.
Understanding Car Insurance and Theft
Car insurance comes in different levels of cover. The kind of insurance you have will determine whether your stolen vehicle is covered or not. Some policies protect only against damage you cause to other people or their property, while others offer wider protection that includes theft.
Here are the common types of car insurance policies you might come across:
- Third-Party Only (TPO)
- Third-Party, Fire and Theft (TPFT)
- Fully Comprehensive Insurance
Third-Party Only (TPO) Insurance
Third-party only insurance is the minimum legal requirement for driving in the UK. It covers any damage or injury you cause to other people, their vehicles, or property. However, this policy does not cover theft or damage to your own vehicle.
So, if you have third-party only insurance and your car is stolen, your insurer will not pay you for the loss. You would have to bear the entire cost yourself, which could be very expensive.
Third-Party, Fire and Theft (TPFT) Insurance
This type of policy is a step up from TPO. It includes coverage for damage caused to others, plus protection against your vehicle being stolen or damaged by fire. So, if your car is stolen, your insurer will typically pay you the market value of the car at the time it was stolen, minus any applicable excess.
TPFT insurance can be a good option if you want theft protection but cannot afford or do not want to pay for fully comprehensive cover.
Fully Comprehensive Insurance
As the name suggests, comprehensive insurance offers the most extensive cover. It protects you against damage you cause to others and your own vehicle, regardless of who is at fault. This includes damage from accidents, fire, vandalism, and theft.
With fully comprehensive insurance, if your car is stolen, you should be covered for the full market value of the vehicle, including repair costs if it is recovered damaged. This type of insurance usually costs more in premiums but offers the best peace of mind.
What Happens If Your Car Is Stolen?
If you discover your car has been stolen, it’s natural to feel panicked and unsure of what to do next. Here’s a simple step-by-step guide to help you through the process.
Step 1: Confirm Your Car Is Actually Stolen
Before taking any further action, it’s worth double-checking a few things:
- Did you park your car in a different place than you remember?
- Has anyone else been using your car or had access to your keys?
- Could the car have been towed for parking violations?
If you are certain the car has been stolen, move on to the next step.
Step 2: Report the Theft to the Police
Contact the police by dialling 101 (or 999 if it’s an emergency). You’ll need to provide important information such as:
- Your car’s registration number
- Make, model, and colour
- Any distinguishing features or modifications
Once reported, the police will give you a crime reference number. Keep this safe because you’ll need it for your insurance claim. The police will also notify the Driver and Vehicle Licensing Agency (DVLA) about the theft.
Step 3: Inform Your Insurance Provider
Contact your insurer as soon as possible to report the theft. Provide them with the crime reference number and any other details they require. Your insurer will explain how to proceed with your claim.
At this point, your insurer will assess your policy to confirm if theft is covered. If you have TPFT or comprehensive insurance, you are likely to receive compensation for your stolen vehicle.
Step 4: Notify the DVLA If Your Claim Is Settled
If your insurer pays out the claim and you receive compensation for your stolen car, you must inform the DVLA that you have effectively sold your vehicle to the insurance company. This step ensures the car is no longer registered in your name.
What Happens If Your Stolen Car Is Recovered?
There’s a chance the police might find your car after it has been stolen. In fact, in the UK, about 50% of stolen vehicles are recovered.
If your car is returned to you:
- Contact your insurance provider immediately.
- Inform them of the car’s condition.
- Your insurer will assess any damage caused during the theft.
- They may cover repair costs if you have TPFT or comprehensive insurance.
If the repair costs are higher than the car’s value, your insurer might declare it a total loss or write-off. In that case, they will usually pay you the market value instead of repairing the vehicle.
Do Personal Items Stolen from Your Car Get Covered?
It’s important to understand that most car insurance policies do not cover personal belongings stolen from inside your vehicle. For example, if your laptop, mobile phone, or handbag is stolen during a break-in, your car insurance will likely not pay for these losses.
If you want cover for your personal belongings, you may need a separate policy, such as home contents insurance, or specific vehicle contents cover (which some insurers offer as an add-on).
Can Black Box Insurance Help with Theft?
Some insurance policies use telematics or “black box” devices installed in your car. These devices monitor your driving behaviour and track the location of your vehicle using GPS.
In case your car is stolen, the GPS tracking can help insurers or the police locate and recover your vehicle more quickly. However, not all black box insurance policies include theft tracking, so check your policy carefully.
How to Protect Your Car from Theft
While insurance can compensate you for a stolen car, prevention is always better than cure. Here are some simple steps you can take to reduce the risk of your vehicle being stolen:
- Always lock your car and close windows fully when leaving it unattended.
- Remove valuables from sight or take them with you.
- Park in well-lit, busy areas or secure car parks.
- Consider installing additional security devices, such as steering wheel locks, immobilisers, or alarms.
- If you have a keyless car, be cautious about protecting your key fob from relay attacks (where thieves amplify the signal to unlock your car).
- Use tracking devices if possible, which can increase the chance of recovery.
What If Your Insurance Does Not Cover Theft?
If you only have third-party insurance, theft is not covered, and you will have to bear the full cost of replacing your vehicle if stolen.
To avoid this financial risk, you should consider upgrading your insurance to either third-party, fire and theft, or fully comprehensive cover.
Common Questions About Theft Cover in Car Insurance
1. Will my insurer pay if my car is stolen but I was careless?
Insurance companies expect you to take reasonable care of your vehicle. If you leave your car unlocked or keys inside, the insurer may reduce or refuse your claim. Always follow safety advice to avoid such issues.
2. What is the “excess” on theft claims?
Excess is the amount you must pay towards any claim. For theft claims, you will typically have to pay your policy excess, and the insurer covers the rest.
3. How do insurers decide the payout for a stolen car?
Most insurers pay the market value of your vehicle at the time it was stolen, not the original purchase price. Market value depends on your car’s age, condition, mileage, and local demand.
Conclusion
So, does insurance cover stolen vehicles? The answer depends on the type of policy you have. If you have third-party only insurance, theft is not covered. However, third-party, fire and theft, and fully comprehensive policies do include theft cover, giving you financial protection if your vehicle is stolen.
If your car is stolen, act quickly by reporting the theft to the police and your insurer. Know that personal belongings inside your car are usually not covered, so take extra care with valuables.
Lastly, take steps to protect your vehicle from theft to avoid the hassle and worry that comes with losing your car. Insurance provides peace of mind, but prevention is always your best defence.
