Car Insurance for Stolen Cars

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What’s stolen car insurance?

Does car insurance cover my car if it’s stolen?

Does car insurance cover theft of personal items inside my car?

What do I do if my car is stolen?

How do I make an insurance claim for a stolen car?

Frequently asked questions

Safeguard yourself from car theft

Long story short

Car thefts are rising across Australia, with around 72,000 vehicles stolen in 2023-24 alone

Insurance theft claims also rose from $170 million in 2015 to $428 million in 2024.

Most types of car insurance will cover you if your car is stolen

Theft cover is included as standard with comprehensive and third-party property, fire, and theft cover, but not with third-party property only policies.

Third-party property, fire, and theft coverage usually has limited benefits

Whereas a comprehensive policy can include agreed value cover, new car replacement, and cover for stolen personal items.

What’s stolen car insurance?

First things first, you don’t need special car insurance to cover car theft. A standard third-party property, fire, and theft or comprehensive car insurance policy will cover you if your car is stolen – which is well and good, as car thefts are becoming all too common and costlier by the year.

In 2023-24, around 72,000 motor vehicles were stolen – about 17,000 more than in 2022-2023.¹Australian Bureau of Statistics – Property crime rises In insurance terms, the total cost of motor vehicle theft claims in Australia rose from around $170 million in 2015 to $428 million in 2024.²Insurance Council of Australia – New car theft claims data shows rises in Queensland and Victoria

So, if you’re antsy about how secure your car is and you don’t want to be left scratching your chin if it unfortunately ends up stolen, a solid car insurance policy might prove to be an effective cure for the itch. 

Does car insurance cover my car if it’s stolen?

Car insurance can cover you if your car is stolen, but you’d need the right kind of policy for the job.

Comprehensive car insurance can pay you out for your car’s market value or an agreed value if your car is stolen. It can also cover emergency transport and accommodation or, under the right conditions, even replace your stolen vehicle with a brand new one of the same or a similar make and model.

Third-party property, fire, and theft can pay you your vehicle’s market value and you may also get access to a hire car if your car is stolen. Typically, agreed value cover and new car replacement aren’t included with third-party property, fire and theft policies.

Third-party property only only covers the damage you cause to other vehicles or property, but not to your car. So, if your car is stolen and not recovered, a third-party property only policy likely won’t give you the soft landing you need. 

Helpful tip

Third-party property, fire, and theft insurance typically includes a payout and a hire car which can help cover your losses if your car is stolen. But a comprehensive policy can go well beyond that to include other handy benefits such as agreed value cover, new car replacement, and cover for any personal items that were in your car when it was stolen. 

After suffering the emotional and financial strain of a stolen vehicle, the extra protection that comes with comprehensive car insurance can provide invaluable peace of mind and put you back in the driver’s seat sooner.

Adrian Bennett

General Manager for General Insurance

Does car insurance cover theft of personal items inside my car?

Only comprehensive car insurance might cover theft of some personal items, like child seats and laptops. And this coverage may come with limitations and exclusions. 

Some policies may cover stolen personal items up to a total value of, say, only $500. Furthermore, items such as cheques, money, credit cards, sporting equipment, tools for work, or firearms usually won’t be covered. 

What do I do if my car is stolen?

Imagine stepping out, finding your car stolen and being hit with the sinking feeling of becoming a car theft statistic. We feel you! That’s why having the right level of car insurance can be so important. Here are some things to keep in mind if your car is stolen. 

How do I make an insurance claim for a stolen car?

Depending on your insurer, you can make a stolen car insurance claim on the phone or online. It helps to have all the relevant details and documents in place before you contact your insurer. You might also want to review your product disclosure statement (PDS) for any exclusions, so you’re not caught off guard.

The claim process

After you’ve contacted your insurer, they will assess the details of your claim and provide you with temporary solutions such as a hire car or emergency transportation if included in your policy. They might also ask you for further details or documents to support your claim (generally the police report number).

How long you’ll need to wait

There’s no set resolution timeframe, as each claim can differ. However, insurers are required to respond to you within 10 days of you making the claim, to let you know if they’ve accepted the claim or if they need more information or time to assess your claim.

Possible outcomes

There are a few ways a stolen car insurance claim can go.

• If your stolen vehicle is not found, you can get an insurance payout. Depending on your policy, this can be your car’s market value or agreed value minus your excess and other deductions.
• If your car is recovered but in a damaged state, your insurer may arrange for the damages to be repaired, or leave it up to you to arrange the repairs yourself but reimburse the repair costs. If the damage is severe enough, it may be treated as a write-off claim.
• If your car is found after your claim is settled, it then belongs to your insurer.

Frequently asked questions

Safeguard yourself from car theft

With car thefts on the rise, car insurance is a good way to cushion yourself from the financial blow of having your car stolen. Try out the iSelect comparison tool to explore policies from a range of providers and help arm yourself with suitable car insurance to back you up.