What Happens When Your Car is Stolen Without Insurance?

What happens when your car is stolen without insurance? You are out of luck if your car is stolen without insurance. Your best bet is now for the police to find the stolen car. Otherwise, all expenses will come from your pocket. You may receive fines, your recovered automobile impounded, and/or receive a license suspension.

What happens when your car is stolen without insurance


Nonetheless, if your car is stolen, call the police, report it to the DMV, and also look for the car yourself.

To prevent being in a situation like this, you need comprehensive coverage to cover vehicle theft in your insurance policy.

What happens when your car is stolen without insurance?

You will not receive any type of reimbursement for a stolen car without insurance. However, it is in your best interest to do the following, hoping your vehicle is recovered:

  1. Confirm that the car is really stolen

In some cases, your car may not have been stolen. First, ensure you are checking the exact place you parked the car.

Read also: steps to total a car yourself

It is also possible that your car was towed by a tow company. If you are financing the car, and you are behind on payments, the repo man may have repossessed it.

Look around for parking signs. If your car was towed for a parking violation, look around for signs to lead you to the responsible agency. You can start by asking the people around if they witnessed a car being towed. Ask for the description if they say yes.

  1. Call the police

When you cannot find out the tow company in possession of your missing car, contact the police. In most states, tow companies are required to report towed vehicles to the police within a state-specified time. If the tow company reported to the police, they have a record of the impound lot.

Read also: What you can do if your vehicle is vandalized

If the police did not receive a report about your car, you will have to file a police report. The faster the police are notified about your stolen car, the likelier you are to recover it.

Tell the officer all you know about the incident. You will need the vehicle identification number (VIN), make, model, and model year, personal items in the car, and any identifying or unique feature in your car.

You need a copy of the police report for your own records.

  1. Notify your lender

If you financed the car, notify the loan provider of the theft. Inform them that there is no theft insurance on the car. Unfortunately, you will be responsible for the remainder of the loan since there is no insurance to cover the vehicle theft.

  1. Report the stolen vehicle to your local DMV

Your local Department of Motor Vehicles (DMV) maintains a database of stolen cars. They may be able to help recover your stolen car by working with the police.

  1. Search for the car yourself

While the assigned detective is searching for your vehicle, you also have to do the same. Remember, there is no insurance company to cover your loss.

Search platforms such as Craigslist and similar websites, including SubReddit where your car may be up for sale. Inform your friends and relatives about your missing car to look out for it.

And most importantly, work closely with the detective. Treat the assigned detective with respect as they may have other responsibilities aside from your stolen vehicle.

If you or someone you know finds the stolen car, report the location to the police immediately. Do not attempt to take back the vehicle, as this could put you in danger. Nonetheless, keep an eye on the vehicle and the driver’s movement if they start driving off.

What insurance covers a stolen car?

Generally, basic liability auto insurance will not cover car theft. Thus, you need comprehensive coverage to cover a stolen vehicle, which is optional in every state.

  • Comprehensive coverage. This insurance coverage covers non-accident-related vehicle damage, including theft, fallen tree branches, collisions with animals, hail damage, vandalism, break-ins, and more.
  • Liability coverage. Almost all states require you to have liability coverage (except New Hampshire). Liability coverage includes property damage and bodily injury. It also protects other road users and property damages.
  • Collision coverage. This coverage covers the repair cost of a damaged vehicle after an accident.

Does car insurance cover theft of personal items in a stolen car?

Suppose you have car insurance for your stolen car. After you file a police report, your insurance company investigates the claim and pays out the actual cash value of your vehicle.

However, your auto insurance will not cover personal items in the car, including cell phone, briefcase, and laptop. You need renters or homeowners policy to cover your belongings, even if the car was not stolen on your property.

Your insurance company may offer personal property coverage for an additional fee, which covers the personal items in your stolen vehicle.

What happens If your car is recovered?

It will be extremely difficult to get your recovered stolen car if you have no auto insurance. You may have to buy coverage before you can claim your car. The longer you wait to claim the vehicle, the more tow, storage, and other fees it piles up.

Fortunately, you could always get temporary insurance. A temporary insurance policy may be valid for 2 to 28 days. It is typically valid for a relatively short time. You may pay a fine to recover the vehicle from the impound. In extreme cases, your driver’s license could be suspended or you go to jail. Jail time may be the case for repeat offenders.

After recovering your car, ensure to find the best insurance quote for your car. You may not be so fortunate to find a stolen car. Discuss with the insurance agent the insurance plan that is most suitable for you.

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