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Theft Cover in Your Car Insurance

By Juhi Walia
12 August 2022, 4:01 PM

When searching for a car insurance policy, you might find a theft cover. Insurance companies offer compensation for losses if your car gets stolen. Theft cover is a mandatory part of a car insurance policy. It covers the financial loss arising due to car theft. Given how expensive cars are and the emotional and financial scars you could have if your car gets stolen, buying a car insurance policy with protection against car theft is vital. So, don't keep your eyes only on the premium. Check also the coverage amount the insurers are offering you for your car. Usually, the insured declared value of the vehicle is the coverage amount you get in case of theft or any other incident. But insurers allow you to make changes to the IDV; however, it can't be more than a specified limit. Many choose a very low IDV to reduce their premium. But the value they get in case of car theft is minimal in terms of the loss faced by them. So, as a customer, you need to strike a balance between coverage and premium.

This article will tell you more about the theft cover of car insurance online. Let's get started!

What does Theft Cover Provide in Your Car Insurance Policy?

While some people have their vehicles insured by third-party insurers, the choice depends on cost and convenience. Theft cover usually includes:

Replacement Cost

If your vehicle is stolen or damaged beyond repair, this amount will be paid to you as compensation for your loss. The replacement cost can vary depending on various factors such as the car's make and model, age, the engine used in your car, etc.

Open Market Value

This amount is paid if your car cannot be replaced for any reason (for example, if it has been destroyed). The open market value is calculated as perprevailing market rates at the time when a claim needs to be made under this clause.

Why is the Theft Cover an Important Element of Your Car Insurance Policy?

Car theft is a serious issue, affecting not only personal cars but also commercial ones. If you have a business that includes commercial vehicles, your vehicle could be stolen at any time of the day or night. This means that if there are no security measures, your business could suffer many losses due to this issue.

You must look for this cover when buying car insurance so that even if your vehicle gets stolen, the insurer would still compensate you after some investigation into the incident by it or its appointed claim service providers. The latter would check whether all necessary steps were taken.

If you own an expensive car, a theft cover is essential:

  • Luxury cars, for instance, command a much greater acquisition price. So, a car insurance policy will at least ensure you financial immunity should your vehicle goes missing.
  • Theft of your entire vehicle includes accessories such as stereo systems and other features like alarm systems installed in your car by the manufacturer or dealer before selling them to customers like yourself who purchase them directly from dealerships.

Benefits of Theft Cover in a Car Insurance Policy

If you have purchased a new car, you can opt for a theft cover and protection against vehicle theft. Theft cover offers several benefits, including:


Theft cover provides compensation if your vehicle is stolen and is not traced by the police within 30 days of the incident. After filing a police complaint and producing proof of ownership, you can claim this amount from your insurer.

Peace of Mind

Theft cover gives you peace of mind as you know that if anything happens to your vehicle, you will be compensated by your insurer without any hassle.

No Need to Pay High Premiums

Most people think they will have to pay high premiums on their insurance policies offering theft cover, which is not true! The premium remains largely reasonable.

Read more - Benefits of Return-to Invoice Add-on Cover Car Insurance

Buy Return to Invoice Add-on Cover for Maximum Protection Against Car Theft

Buying a car is beyond its purchase cost. For instance, if you buy a new car and then have it stolen from you, you will have to repay all the money invested in buying that car. So, if you buy a return to invoice add-on cover for an additional premium, you can get the invoice value if the car goes missing or is damaged beyond repair. In some cases, you could get a brand new car of the same make and model. So, having a return to invoice car insurance add-on cover helps you immensely.

Wrapping Up

The amount of money you receive as theft cover will depend on the value of your car and your insurance policy's maximum payout limit. When choosing a provider, compare their theft cover policies to ensure they have the features that meet your requirements. Remember—the first step towards protecting your investment is securing appropriate cover. Buying a return to invoice add-on cover for enhanced protection against theft won't be a bad idea either.

Read more -

Advisor's Tip: How to file a Car Theft Claim?

The Impact of Installing Anti-theft Device on Car Insurance Premium


1. What is theft cover in car insurance?

Theft cover is part of your basic car insurance policy, which can be purchased online as well as offline. You can also buy a return to invoice add-on cover for maximum protection against vehicle theft. 

2. Why is theft cover important in car insurance?

A theft cover is important because it protects against the massive loss you would have to face in case of a stolen case without a car insurance policy.

3. What is the purpose of theft cover?

The purpose is to protect policyholders against the potential losses they will face in the event of car theft. The higher the car cost, the greater the loss for policyholders in case of such an incident.

4. Can I buy a car insurance policy having theft cover online?

Of course, you can! Trusted platforms, such as Paytm Insurance, allow you to buy the best car insurance policy at the best price.

5. How can you ensure that your claim for your car insurance in case of theft is approved?

Ensure you have notified the police, which will issue a crime reference number to help you claim your car insurance policy. Keep all receipts from expenses incurred while replacing or repairing your vehicle. This will ensure your claim is approved.

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