NO. Liability insurance does not cover theft in any situation. It only pays for damage you cause to others when you drive your own car. If your car is stolen, liability insurance does not pay for the loss of your vehicle, the loss of personal items inside the vehicle, or any related financial damage. The coverage protects others but not you. Car theft continues to rise in many parts of the country. Recent reports from national crime agencies show steady increases in vehicle theft claims, and drivers without the right coverage face full financial loss. The only insurance type that covers a stolen car is comprehensive insurance. This is a part of full coverage policies and protects your car from many non accident events. Theft, fire, vandalism, weather damage, and broken glass are included under comprehensive protection. If a thief takes your car, comprehensive insurance pays the value of your vehicle after your deductible.
Drivers who carry liability insurance only do so because it is the minimum requirement in most states. The cost is lower, but the protection is limited. If your vehicle is damaged by weather, a falling object, a break in, or a thief, your policy will not cover the loss. You will pay for everything out of your own pocket. Many drivers do not realize this until they face a loss. Some insurers also consider theft a total loss event, similar to when a car is damaged beyond repair. This means the claim process follows specific steps. When drivers want to understand how insurance works when a car is totaled, reading guides about buying back a totaled car can help with a clearer view of insurer rules. Theft claims follow similar guidelines because they involve vehicle value, claim limits, and insurer approval.
Parents, young drivers, and people who live in cities with higher theft rates should understand how liability insurance and comprehensive coverage differ. This helps avoid financial stress later. The purpose of this guide is to show what liability covers, what it does not cover, how comprehensive coverage pays for a stolen car, and when renters or lenders may require extra protection. It also explains how claims work, how police reports matter, and how to lower your risk of theft. This knowledge helps you stay prepared and protected with the right coverage for your situation.
What Liability Insurance Covers?
Liability insurance is simple. It pays for damage you cause to others. Every state requires liability insurance because it protects other drivers and property owners from loss. Liability coverage includes two main parts
- Bodily injury liability
- Property damage liability
These cover
- Injuries to others when you cause an accident
- Damage to another vehicle
- Damage to buildings, fences, or public property
- Legal defense if someone sues you after a collision
Liability insurance does not protect your own car. It does not cover repairs to your vehicle after an accident. It does not cover weather events. It does not cover vandalism or the cost of stolen property. This makes liability insurance the lowest cost option but also the most limited form of car insurance. Some drivers who want to reduce their monthly payment choose liability only, but this decision puts them at high risk if theft happens.
Drivers sometimes ask if liability covers damage from a mailbox hit or damage from debris. Guides such as our page on hitting a mailbox show how property damage liability applies to other people, not you. This same concept applies to theft. Liability protects others. Comprehensive protects you.
Why Liability Insurance Does Not Cover Theft?
Car theft is a risk that affects your vehicle, not someone else’s property. Liability insurance is designed only to protect others from your actions. Since a stolen car does not involve you causing damage to someone else, liability insurance plays no role in theft claims. Insurers make this rule clear. Theft always requires comprehensive coverage because it is a non collision event that results in loss of your car.
When thieves take your car, the insurer must pay the value of your vehicle. Only comprehensive insurance can do this. Without it, you receive no financial help. The loss becomes your full responsibility. Liability insurance also does not cover
- Personal items inside the stolen car
- Damaged locks or broken windows
- Keys stolen from your home
- Towing charges after recovery
Drivers who only use liability insurance often pay less each month but may face thousands of dollars in losses after a theft. This is why insurers recommend complete protection in areas with higher crime rates.
How Comprehensive Insurance Covers a Stolen Car?
Comprehensive insurance protects your car from non collision events. Theft is one of the main covered events. If someone steals your car, comprehensive insurance pays for the value of your car after subtracting your deductible. Comprehensive insurance also covers
- Break ins
- Broken windows
- Weather damage
- Fire damage
- Vandalism
- Falling objects
If your car is recovered, comprehensive insurance pays for repairs. If the car is not recovered or is damaged beyond repair, the insurer treats the claim as a total loss. Many drivers also check if leaving keys inside the car affects a theft claim. Our guide on stolen car claims with keys inside offers more context on how insurers handle negligence.
Comparing Liability and Comprehensive Coverage
| Coverage Type | Protects You | Protects Others | Covers Theft | Covers Weather Events | Required By State |
| Liability | No | Yes | No | No | Yes |
| Comprehensive | Yes | No | Yes | Yes | No |
What You Risk With Liability Only Insurance?
Drivers who carry liability only face several risks
- Total loss of the car during theft
- No financial help from insurer
- Full cost of replacement vehicle
- Loss of personal items inside the car
- Higher financial stress in high crime areas
Statistics from national crime reports show thousands of vehicle thefts each year. Thieves target cars in parking lots, driveways, garages, and public streets. If you depend on your car for work or school, losing it can disrupt your life. Drivers should consider their location, income, and risk level when deciding if liability only insurance is enough.
How Theft Claims Work With Comprehensive Coverage?
When your car is stolen and you have comprehensive insurance, you begin the claim process. The steps usually include
- Filing a police report
- Contacting your insurer with details
- Providing proof of ownership
- Waiting for recovery or investigation
- Getting paid for the loss once the insurer approves the claim
A police report is required for theft claims. Insurers use police data to track recovery, confirm details, and prevent fraud. Drivers who do not file a police report may face claim denial.
The insurer waits a certain period for the police to recover the vehicle. If the car is not found, the insurer pays the actual cash value of the car. This is the market value before the theft. Your deductible is subtracted from the final payout. Guides on total loss claims help drivers understand how insurers calculate vehicle value.
What Happens if the Stolen Car Is Recovered?
If the stolen car is recovered, the insurer inspects the car and checks for damage. Comprehensive insurance pays for
- Broken glass
- Damaged locks
- Scratches or dents
- Missing parts
- Engine damage caused by thieves
If the recovery happens after the insurer has already paid the claim, ownership of the vehicle may transfer to the insurer. The insurer may choose to sell the vehicle or send it to auction. Drivers can sometimes buy back their recovered vehicle if they wish, similar to a buy back process after a total loss.
When Rental Cars or Borrowed Cars Are Stolen?
If you drive a rental car and it gets stolen, liability insurance still does not pay for the loss. Rental companies expect protection for the rental car itself. Drivers must rely on comprehensive insurance from their own auto policy or buy rental company protection. Drivers often do not understand how liability works with rental cars. Our guide on rental car insurance coverage shows how personal auto policies apply to rentals.
If you borrow a friend’s car and it gets stolen, liability insurance still does not cover theft. The car owner’s comprehensive insurance covers the loss because insurance follows the car. This is why parents, friends, and family members should understand the limits of liability only coverage.
Who Should Buy Comprehensive Insurance?
Comprehensive insurance is helpful for
- Drivers who live in cities with high theft rates
- Drivers who park on the street
- Owners of newer vehicles
- Drivers with expensive cars
- Students who park on campuses
- Families who want full protection
If your car has value or is financed, comprehensive insurance is almost always required by lenders. Drivers with older low value cars sometimes skip comprehensive coverage to reduce cost, but this choice must match your risk level. Theft can happen to any vehicle model, not only luxury cars. Statistics show that budget cars and older vehicles are targeted more often because they are easier to steal.
How to Lower Theft Risk?
Drivers can reduce the chance of theft by
- Parking in well lit areas
- Locking doors every time
- Avoiding leaving valuables in sight
- Installing an alarm
- Using a steering lock
- Keeping keys secure
- Using GPS tracking devices
Insurance companies may offer discounts for anti theft devices. Safer cars can lead to lower premiums. Some insurers track theft data city by city to measure risk. Drivers in high risk neighborhoods may pay more for comprehensive insurance.
Frequently Asked Questions (FAQs)
No. Liability insurance does not cover theft or damage to your own car.
Comprehensive insurance covers theft of your car and damage caused during theft.
No. Liability insurance does not cover personal property. Homeowners or renters insurance may apply.
Yes. Comprehensive insurance pays the actual cash value of the vehicle if it is not recovered.
Yes. The insurer subtracts your deductible from the settlement amount.
Comprehensive insurance still covers the loss. Some claims may require more review to rule out fraud.
Only if you have rental reimbursement as an add on to your policy.
No. Liability covers damage you cause to others, not damage caused by thieves.
Final Thoughts
Liability insurance does not cover a stolen car under any situation. It only protects others when you cause damage or injuries. Comprehensive insurance is the only type of insurance that covers theft, vandalism, and other non collision events. Drivers who carry liability only must understand the financial risk of losing their car to theft. If a car is stolen without comprehensive coverage, the driver pays the entire loss. When you want stronger protection and access to better comparison options for complete coverage, Alias Insurance helps drivers find trusted and affordable policies that match their needs.
