Updated on - 18 May 2026
If you’re thinking, 'Does car insurance cover theft?’ the answer is yes. However, the extent of coverage depends on the type of policy you choose. Understanding what is included can help you avoid unexpected financial losses in case your vehicle is stolen. This blog reviews what type of insurance policy covers the theft of the vehicle.
What’s Covered by a Car Insurance Policy?
Car insurance policies are of two categories: comprehensive and third-party liability coverage.
As the name suggests, a third-party liability plan offers coverage for damages to third parties. These plans have a limit on how much the insurer will pay to the third party, though in case of injury or death, liability is unlimited. But you will not receive coverage if your car gets stolen.
A comprehensive car insurance policy covers theft of the vehicle, accidents, third-party liabilities, own damage cover, and so on. Some comprehensive car theft insurance policies offer the following benefits in case your car is stolen:
- Daily Allowance for Car Theft: If your car gets stolen, the insurer may provide you with the cost of hiring a rental car for a certain period, as mentioned in your policy document.
- Courtesy/Hire Car: Some insurers even provide a replacement courtesy/hire car within 24 hours after the vehicle is reported stolen.
- Partial Theft Coverage: In case some parts or accessories are stolen, you can get them replaced without losing your no-claim bonus if you have an NCB protection add-on.
Steps to File a Claim If Your Car Is Stolen
Auto theft insurance is usually included in most comprehensive policies, and you can get compensated if such an event occurs. Here's how to file a claim in case your car gets stolen.
1. File an FIR
- You are immediately required to file an FIR upon discovering the theft of your vehicle.
2. Contact Your Insurer
- Notify your insurer and submit the duly filled claim form along with a copy of the FIR.
3. Inform the RTO
- The next step is to notify the Regional Transport Office (RTO) to avoid legal issues if the car is misused. You have to provide the RTO with the vehicle’s registration certificate, FIR copy, your driver's licence, and a copy of the insurance claim form that you submitted when making a claim.
Documents required
- You must keep certain documents ready. The list below will be handy.
- Copy of FIR
- Copy of the RC of the vehicle
- A duly filled and signed claim form
- Photocopy of your driving license
- Copy of your car insurance policy document
- Original keys of the car
- Duly signed RTO Transfer Forms 28-30
- In the case of ongoing car loan, NOC and Form 35 from the financer
- No Trace Report
Conclusion
Car theft insurance can be covered by a comprehensive insurance plan. It will also provide other benefits like allowances for hiring a rental vehicle and coverage for partial theft. By following certain simple steps, like filing an FIR, contacting your insurer, informing the RTO, and keeping the necessary documents at hand, you can navigate the claims process efficiently.
FAQs
1. How is the claim amount decided in theft cases?
The amount of money the insurance company pays is usually based on the vehicle's Insured Declared Value at the time the insurance was bought or renewed. If the vehicle is completely lost or stolen, the insurance company will pay the maximum amount payable, which is the current market price of the vehicle after it has lost some value over time due to depreciation.
2. Is theft covered in add-ons or basic plans?
A regular comprehensive car insurance policy usually covers theft as a standard feature, though some add-ons or extra features provide additional perks, like money for hiring a car or no-claim bonus protection.
3. Can I buy car insurance online for theft coverage?
Yes, you can get comprehensive plans that cover theft as well as third party insurance for your four-wheeler online. When you purchase it online, you can quickly and easily compare plans, look up IDV options, and choose suitable add-ons.
Disclaimer: The information provided in this blog is for educational and informational purposes only. It may contain outdated data and information regarding the topic featured in the article. It is advised to verify the currency and relevance of the data and information before taking any major steps. Please read the sales brochure/policy wordings carefully for detailed information about on risk factors, terms, conditions and exclusions. ICICI Lombard is not liable for any inaccuracies or consequences resulting from the use of this outdated information.