Does Car Insurance Protect Against Theft?

Owing a car is a great joy. But what if the same car gets stolen? The financial implications could be scary. What to do in such a scenario?Buying comprehensive car insurance coverage is the answer to the question.

Does Car Insurance Protect Against Theft?

There are primarily three different types of car insurance policies in India, namely third-party car insurance, own damage cover and comprehensive car insurance. All of the above-said insurance policies come with many advantages and disadvantages. But, to save yourself from the brunt of a stolen car, you should have a comprehensive coverage policy. For convenience and better comparison, consider buying car insurance online.

In this blog, we will talk about how comprehensive car insurance provides wide coverage including theft, and we will understand the minute details of car insurance coverage in the context of theft.

Understanding Car Insurance

Car insurance is a contract between the car owner and the insurance provider where the car owner has to pay a premium in return for financial protection for their car.

Comprehensive car insurance and own damage cover provide compensation if your car is stolen or if there is a total loss of the insured car. Note that third party car insurance does not provide any coverage for your car. It is a coverage for third-party liabilities only.

It is important to note that its own damage cover does not cover the loss incurred like personal belongings like documents, jewellery, suitcases and other items in the car at the time of theft. If you want coverage for the personal belongings you carry in your car, then you have to buy additional add-on cover by paying some extra premium.

If you have an add-on for personal belongings, the insurance provider will compensate you for the market value of your lost personal items with car theft.

Remember, some exclusions are not covered even in comprehensive car insurance:

  • Accidents or mishaps caused due to negligence

  • Theft of borrowed car

  • Loss incurred to the car due to normal wear and tear, damage caused due to climatic change, electrical or mechanical failure

  • Not reporting the incident to the police within 24 hours of theft or discovery

  • Theft of important documents

  • Personal items were given to the third party for use

  • Personal items left in the car overnight

  • Personal items loss that has not been reported to the police

  • Carrying personal items that are not insured

  • Personal items in the locker or safety box

Steps to Follow for a Claim of Loss Under Personal Belonging Cover

  1. You are required to inform the insurance provider within 24 hours of car theft

  2. You must fill in all the personal details like name, contact number, policy number, date and time of the theft and place of the incident while filing for claim.

  3. Filing an FIR and submitting its copy to the insurance provider is compulsory.

Steps to Follow to File a Car Theft Claim

  1. File an FIR- Filing an FIR is one of the necessary and most important steps when reporting theft of your vehicle. Visit the nearest police station and register a complaint, which is regarded as the first step in initiating the car theft claim process.

  2. Inform the car insurance provider- Once you have filed an FIR with the police, the next step is to report the insurance provider about the car theft. You are required to report the theft incident to the insurance provider within 24 hours of car theft. All the insurance providers are required to initiate the claim process concerning the theft of the vehicle.

  3. Inform the Regional Transport Office (RTO)- As per the law, the following mandatory step is to inform the Regional Transport Office about the car theft. It is important as they will facilitate the transfer of necessary documents and papers.

  4. Gather the required claim settlement papers- The last step is to collect all the necessary documents to be submitted to the insurance provider to verify the claim. You must fill out the Car Theft Claim Form and submit it to the insurance provider and all other necessary documents.


In this blog, we have dealt with car insurance in case of theft. In order to have financial protection in case of theft, you are required to buy a car insurance policy that provides coverage in case of theft. A comprehensive car insurance policy and an own damage cover policy offer this protection. However, it does not provide any coverage for the loss of personal belongings in the car at the time of the incident. Remember to get an add-on cover to protect your personal items. The steps for the same have been discussed, and the steps to follow while registering an FIR and the procedure for settling the claim have also been discussed.