What would happen if your car were stolen and you didn’t have auto insurance?

If your car were stolen and you didn’t have auto insurance, you would still have to pay off your car loan in full.

Even if you have auto insurance, theft is only covered if your policy includes comprehensive coverage.

If you don’t have comprehensive coverage, you may have the bear the financial costs yourself. Specifically:

• No reimbursement for the vehicle. You wouldn’t receive any payout for the stolen car’s value. If you were still paying off a loan, you’d owe the remaining balance on a car you no longer have.
• Out-of-pocket for a replacement. You’d have to pay entirely on your own to buy another vehicle.
• No coverage for stolen contents or damage. If the car is recovered damaged, or personal items were taken, you’d cover repairs and losses yourself (though homeowners/renters insurance sometimes covers stolen personal belongings).

you should file a police report immediately regardless of your insurance coverage and consider notifying your lender if the car is financed.

Personal Injury Protection coverage (PIP) and Property Damage Liability coverage (PDL) do not cover theft. So even if you have auto insurance, you may still be in this situation if your policy doesn’t include comprehensive coverage.

Lenders typically require comprehensive coverage for financed and leased cars precisely to avoid this scenario. If you have a financed or leased car and you don’t have comprehensive insurance, you may be in violation of your loan terms.