What does full-coverage insurance cover if my car is stolen?

If my car is stolen and I have full-coverage insurance, will I be reimbursed the original value of the car?

Answer
Great question! If your car is stolen, you will not be reimbursed the original value of the vehicle. Unfortunately, as soon as you drive a new car off the lot, it drastically depreciates in value. Some experts say that cars depreciate in value 20% to 30% just in the first year alone.
What your insurance company will do is reimburse you the actual cash value of the car, which factors in depreciation. For example, let’s say your new car is stolen exactly one year after you purchased it for $20,000. After taking off 20% for depreciation, the car is now worth $16,000. This is the actual cash value.
And the odds are you will still have an outstanding balance due to the bank that financed your purchase. You may want to look into gap insurance to cover the difference between what you receive from your insurance company and what you still owe on the car.
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Jackie Whalen
Answered on Mar 12, 2021
Jackie Whalen has been in the insurance industry for over 7 years, working in sales, service and claims. She has won numerous awards as a top salesperson and customer service agent. She currently lives in New York with her husband. Her 24 year old son recently moved out on his own which has given her more time to travel, write and train her dog Maisy not to chase her cat, Whiskey.
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