Does Your Auto Insurance Policy Cover Car Theft? Look For These Add-On Riders

If your vehicle is unfortunately stolen, you could always make an insurance claim. But for such cases, your vehicle needs to be covered under a comprehensive insurance policy
 Does Your Auto Insurance Policy Cover Car Theft? Look For These Add-On Riders
Does Your Auto Insurance Policy Cover Car Theft? Look For These Add-On Riders

The thought of a car getting stolen will leave owners in deep despair. Finding out that your vehicle insurance policy covers theft may be one spot of relief in an otherwise bleak situation. Although most comprehensive car insurance policies provide for cover against vehicle theft, whether your policy provides the same cover or not will depend on the specific terms and conditions of the coverage you have opted for while buying the policy. Also, do keep in mind that even if you have a policy running that covers vehicle theft, personal property in the stolen vehicle is not covered.

Leading insurers provide two types of insurance policies: liability only (third-party), and package policies (comprehensive). Car insurance companies will pay for third-party damages up to a certain limit. 

Says Sanjiv Bajaj, chairman and managing director, Bajaj Capital: “Car theft and personal accident damages are covered under a comprehensive policy. The plan also includes optional depreciation coverage, no-claim bonus (NCB) protection, and other benefits. A comprehensive policy is required if you want insurance that covers stolen vehicles.”

That said, it should be noted that there are also add-ons that are not very popular, but prove to be very useful for car owners in crucial times. Here’s a list of them.


Imagine your life without your car and a scenario where you have to manage your transportation for some time. This will mean that you will have to depend on public transport for your daily commute or for travelling from one place to another. While using public transport, such as taxis, buses, and urban rail transport comes with its own challenges, it also comes for a price that you would need to pay. A daily allowance cover with your auto insurance policy will help on easing this burden as it will pay for the travel.


Your car getting stolen is bad enough to leave you anxious and worried. If it carries any valuables, this nightmare escalates to a different level altogether. While a comprehensive car insurance policy does not cover the loss of any stolen belongings, a personal belongings add-on rider would provide the adequate cover against loss of such personal items.


There are a couple of things you will need to remember while making a claim for your stolen car. Along with your claim request, you would have to provide to your insurance provider a no-trace report or an untraced car report handed over by the local police. If you cannot provide this, there are chances that your claim request would be rejected. 

You will also need to get a duplicate registration certificate from the regional transport office (RTO), too. If you had purchased the vehicle on loan, the insurance company will compensate the pay-out amount to the financer. You would need to pay for any excess amount. 


Car insurance is not something that you should buy in a hurry. Neither is it something that you can delay buying. Buying a car insurance requires proper due diligence. 

Says Rakesh Jain, CEO of Reliance General Insurance: “It is important to compare and analyse if the selected policy caters to your requirements. It is also equally important to understand the different types of policies on offer, and the different types of cover offered by them. For instance, while you are only mandated to purchase third-party insurance cover, it does not provide for any damages to your car from accident or theft. Therefore, you must go for the best possible comprehensive cover that will ensure that your car receives the maximum coverage, and you are financially protected.” 

A comprehensive car insurance is the best all-round extensive plan that provides coverage for both third-party liabilities and own car damages. “It also covers for losses incurred from natural and man-made calamities, accidents, theft, and fire. Own damage insurance cover also provides coverage for losses to your car caused by theft,” says Jain.  

It is wise to analyse your existing auto insurance policy and see if it provides you with the coverage you need. If not, then it would be prudent to upgrade or port your existing policy. 

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