Yes, full coverage insurance typically covers the theft of your entire car, but it's crucial to understand the specific component that provides this protection. The term "full coverage" isn't a formal insurance policy; it's a common way to refer to a policy that combines comprehensive coverage and collision coverage, along with your state's required liability insurance. Theft is covered under the comprehensive portion of your policy.
Comprehensive insurance is designed for incidents that are out of your control and don't involve a collision with another vehicle. This includes events like theft, vandalism, fire, falling objects, and natural disasters. If your car is stolen and not recovered, your insurance company will typically pay you the vehicle's actual cash value (ACV) at the time of the theft, minus your comprehensive deductible.
It's important to know what is and isn't covered. While the car itself is covered, personal items stolen from inside the vehicle (like a laptop or golf clubs) are not covered by your auto policy. Those would typically fall under a homeowner's or renter's insurance policy. Additionally, if your car is stolen and then damaged in an accident before it's recovered, the damage would be covered under the respective parts of your policy—the initial theft by comprehensive, and any subsequent collision damage by your collision coverage.
The claims process involves filing a police report immediately and then contacting your insurance provider. The insurer will investigate, and there is usually a waiting period (often around 30 days) to see if the vehicle is recovered. If it's not found, the settlement process begins.
Here is a breakdown of how different policy components relate to a theft claim:
| Coverage Type | Mandatory? | Covers Theft of Entire Car? | Covers Damage After Theft? | Typical Deductible Range |
|---|
| Liability Insurance | Yes (in most states) | No | No | Not Applicable |
| Comprehensive Coverage | No (but often required by lenders) | Yes | No (for theft itself) | $100 - $1,000 |
| Collision Coverage | No (but often required by lenders) | No | Yes (if stolen car is in a crash) | $250 - $1,000 |
The cost of comprehensive coverage is influenced by your deductible amount, your location (theft rates are higher in urban areas), and the type of vehicle you drive (high-theft models cost more to insure).
