Car theft insurance - what to do if your vehicle is stolen

Unfortunately, tens of thousands of vehicles are stolen across the UK every year.

According to the Driver and Vehicle Licensing Agency (DVLA), 61,343 vehicles were reported stolen in 2024 – equating to around seven an hour, and 168 every day.

But how does this impact your car insurance?

This guide will explain all you need to know, as well as some helpful information on what to do if this happens to your vehicle.

What is car theft insurance?

Car theft insurance is a type of coverage included in comprehensive car insurance policies that protects policyholders against financial loss if their vehicle is stolen or damaged during a theft attempt.

This insurance helps cover the cost of replacing or repairing the stolen car, subject to the policy’s terms, deductibles, and coverage limits. It offers peace of mind to car owners.

What should I do if my car is stolen?

If you are certain that your vehicle has been stolen, call the police on 999 and report the theft.

The police will ask for the make, model, colour, and registration number for the vehicle – as well as details of where it was parked, or any other relevant information.

They will give you a crime reference number, so that you can start an insurance claim.

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Does car insurance cover theft?

Yes, some car insurance policies can cover theft, but it depends on the type of coverage you have. Here's how it typically breaks down:

A stolen vehicle is typically covered with comprehensive car insurance. If your car isn’t recovered, or if it’s damaged when recovered, comprehensive insurance usually covers it.

Also, if someone breaks into your car and causes damage, that is usually covered under this type of policy.

However, personal belongings left in the vehicle are not typically covered by car insurance unless specifically mentioned in the policy agreement.

It is important to remember that third-party, fire and theft insurance, or house insurance could cover all or part of the car theft.

Does fully comprehensive car insurance cover theft?

Yes, fully comprehensive car insurance typically covers theft. It protects against damage to your vehicle, theft, and vandalism.

If your car is stolen or damaged during a theft attempt, your insurer may pay for repairs or the vehicle’s replacement, subject to policy terms, conditions, and deductibles.

This is why it is always important to check your policy for specific coverage details.

Does third party car insurance cover theft?

No, third party car insurance does not cover theft as ut only protects you against damage or injury you cause to other people or their property.

This means that if your car is stolen or damaged, you will have to pay for repairs or replacement yourself.

Can I get car insurance if my car was previously stolen?

You can get car insurance even if your car was previously stolen. However, some insurers may view your vehicle as higher risk, potentially leading to higher premiums.

If your vehicle has been stolen in the past, it is important to inform the insurer about its real history.

Should I get black box insurance?

Black box insurance uses a device installed in your car to monitor driving behaviour, such as acceleration, braking, speed and mileage driven.

Insurers use this data to calculate premiums and reward safe driving with lower costs.

Some policies include theft tracking – making it easier to track down the vehicle and/or make a claim.

Also, by basing insurance costs on actual driving, it provides fairer pricing and can help build a positive driving record over time.

What do you do if your stolen car is found in the UK?

A notice letter will be sent from the police to the registered keeper and/or owner of the vehicle, providing instructions on how to arrange collection.

It is strongly recommended that the recovery operator be contacted (the phone number is included in the notice letter) to make an appointment for collection. This may help avoid a wasted journey and reduce waiting time.

The recovery centre’s contact number is also provided on the notice letter.

For drivers looking to make a claim, the insurer must be contacted before arranging collection.

The insurance company may have a claim to the vehicle and may choose to pay the charges and collect it themselves.

If the V5C (vehicle registration document) has already been sent to the insurer, written confirmation from the insurance company will be required, authorising the individual to collect the vehicle.

Once a driver has received the letter, the vehicle may be collected immediately.

However, they will not be released until recovery staff have verified the stamped Vehicle Identification Number (VIN).

If the vehicle is locked and no key is available, or if the key does not work, arrangements will be made for a locksmith to gain entry.

It is important to remember that the vehicle cannot be released until this has been completed. This process may take several days.