Does car insurance cover theft?

Comprehensive car insurance

Comprehensive insurance almost always includes cover for theft and attempted theft. This means your insurer may pay out if:

• Your car has been stolen
• Your car is damaged during a theft attempt
• Parts of your car are stolen
• Your car is damaged after being stolen and recovered

Comprehensive cover usually includes fire and theft protection as standard. Always check your policy wording for exclusions and limits.

Third-party, fire and theft insurance

Third-party, fire and theft insurance covers your car if it's stolen or damaged by fire. It also covers damage you cause to other people and their property. However, it doesn't cover damage to your own car after an accident that was your fault.

Third-party-only insurance

Third-party insurance doesn't cover theft of your own vehicle. If your car is stolen, you'll usually need to pay the full replacement cost yourself.

Most insurers define theft as the permanent loss of your vehicle through unlawful taking. This usually includes:

• Theft of the whole car
• Attempted theft causing damage
• Theft of fitted parts, such as alloy wheels or a stereo

Temporary unauthorised use may not always count as theft under your policy terms.

My car has been stolen. What do I need to do?

If your car is stolen, you should report it to the police first, then contact your insurer as soon as possible. Acting quickly may help your claim progress more smoothly.

Here’s a step-by-step guide to what to do:

Step 1: Report the theft to the police

Contact the police immediately after discovering your car is missing. You should provide:

• Your registration number
• The make and model
• The colour of the car
• The location where it was stolen
• The estimated time of the theft
• Details of any tracking devices or security systems

The police will give you a Crime Reference Number (CRN). You'll need this when making an insurance claim.

Step 2: Notify your insurance company

Contact your insurer after reporting the theft to the police. Most insurers have claims helplines available 24 hours a day. They'll usually ask for:

• Your Crime Reference Number
• Your policy number
• Your vehicle details
• Information about where the car was parked
• Details of any outstanding finance

Your insurer may also ask for all sets of keys linked to the vehicle.

Step 3: Check the car’s status

You may want to check whether your vehicle still appears on the Motor Insurance Database (MID). If your car is recovered later, this can help confirm its insurance status. If the vehicle has been declared off the road with a SORN, tell your insurer during the claims process.

How does a car theft insurance claim work?

A car insurance theft claim usually involves reporting the theft to the police, followed by an insurer investigation and a final settlement offer. The process can take several weeks depending on the circumstances.

Insurers investigate theft claims to help prevent fraud and confirm the details of the loss. They may ask for documents such as proof of ownership, service history, any finance agreements, and both sets of keys. CCTV footage or tracking data may also be requested.

Some insurers wait a short period before settling the claim to allow time for the police to try to recover the vehicle. If the car isn't recovered, your payout is usually based on its market value before it was stolen. This is the amount it would cost to buy a similar car of the same age, condition and mileage.

Insurers typically won’t pay the original purchase price, the cost of a brand-new replacement, or more than the car’s current market value.

You’ll also need to pay your car insurance excess on any claim. This is deducted from your final payout and includes both compulsory excess (set by the insurer) and voluntary excess (chosen by you when taking out the policy). For example, if your car is valued at £10,000 and your total excess is £500, you'd receive £9,500.

What if the car is declared a write-off?

A stolen car is usually treated as a total loss, or a write-off, if it's not recovered within a specified time frame (often up to 30 days). This means the insurer settles the claim and closes the policy for that vehicle.

Will my car insurance premium increase after a theft claim?

Unfortunately, yes, a theft claim will usually increase your insurance premium. Insurers view theft claims as a higher insurance risk because they've paid out for a loss.

Even though you didn't cause the theft, the claim is often treated as an at-fault claim for pricing purposes. This is because the insurer can't recover costs from another driver.

Your no-claims bonus, or NCB, may also be affected after a theft claim. If your NCB is protected, you may keep some or all of your discount. However, your premium could still increase. If your NCB isn't protected, you could lose part or all of the discount built up over previous years.

What can invalidate a car theft claim?

A theft claim can be rejected if you breach your policy conditions. For example, most insurers expect you to take reasonable steps to protect your vehicle.

Leaving the car unsecured is often considered a breach. Therefore, your insurer may refuse a claim if you leave keys in the ignition. They may also refuse if you leave the engine running unattended, leave doors unlocked, or leave windows open.

Failing to use security devices may also affect your claim. Some policies require alarms, immobilisers or trackers to be active, and if these aren't used correctly, your claim could be affected.

Incorrect information on your application can also lead to rejection. Your insurer may refuse a claim if key details were inaccurate, such as where the car is usually parked, the main driver, or the security features fitted to the vehicle.

What if my car was broken into?

If your car was broken into and the incident caused damage, comprehensive and third-party, fire and theft policies usually cover repairs. However, personal belongings stolen from the car may not be covered. Some insurers will include this with comprehensive insurance, but many may offer limited contents cover as an optional extra.

How to reduce the risk of car theft and lower your insurance costs

Taking steps to improve your car’s security can help reduce the risk of theft and may also lower your insurance premiums. Insurers often reward drivers who take extra precautions, so it can be worth strengthening your vehicle’s protection.

Install approved security devices

• Thatcham-approved alarms, immobilisers and trackers can improve your car’s protection. Some insurers may offer lower premiums for vehicles fitted with approved security systems.

Park somewhere secure

• Parking in a locked garage is one of the best ways to reduce theft risk. If you don't have a garage, try to choose a well-lit area with CCTV where possible.

Use physical security locks

• Steering wheel locks and gear stick locks can deter thieves. Visible security devices may also make your car a less attractive target.

Protect against keyless car theft

• Keyless theft is becoming more common in the UK. Signal-blocking pouches, sometimes called Faraday bags, can prevent thieves from intercepting your key’s signal. You should also keep keys away from doors and windows inside your home.