Does car insurance cover stolen items from the car?

Imagine walking toward your car in the parking lot after an enjoyable night out, only to discover that it’s been broken into and several of your personal belongings have been stolen. Unfortunately, this is becoming a common occurrence in Canada.

Between 2018 and 2023, the cost of auto theft claims jumped by a staggering 254%. In 2023 alone, losses hit over $1.5 billion. That’s nearly 20% more than in 2022, according to the Insurance Bureau of Canada (IBC).

Would your car insurance cover this loss?

But the real question remains: would your car insurance cover this loss? It depends. If you have comprehensive coverage, it would cover the damage to the car. But as for your belongings? No, car insurance doesn't cover those. You would need another type of coverage. Let's break it down.

What does car insurance typically cover?

Standard car insurance requirements and what they cover in Canada vary depending on which province or territory you live in. Below is a breakdown of coverage types by necessity:

Mandatory coverage

Nevertheless, third-party liability coverage is mandatory across Canada, as well as accident benefits (except in Newfoundland and Labrador). Liability coverage covers third-party injuries and property damage if you're found at-fault in a car accident. Accident benefits coverage covers the cost of medical expenses if you're injured in the collision, such as prescriptions, rehabilitation, and income replacement if you're temporarily unable to work.

Then, depending on your province's insurance requirements, your insurance may also cover accidents with an uninsured or underinsured motorist or direct compensation-property damage, where you go through your own insurance company when filing a claim instead of the other driver's, speeding up the claims process.

Optional coverage

In addition to mandatory coverage, many drivers choose to include optional add-ons such as:

• Collision coverage
• Comprehensive coverage

Collision coverage helps cover the cost of repairing or replacing your car after a car accident, either with another vehicle or a stationary object.

Comprehensive coverage, on the other hand, helps cover the cost of repairing or replacing your vehicle after it experiences non-collision-related damage, like fire, water damage, falling objects, theft, and vandalism.

Does car insurance cover personal belongings?

Contrary to popular belief, car insurance does not cover the theft of personal property left in your car, unless it’s a permanent element of your vehicle.

For example, if you leave your smartphone behind in your car and a burglar smashes your car window and steals your phone, laptop, sporting equipment, or cash, your car insurance company would not reimburse you for these items—only the cost of repairing the broken window.

However, if a thief broke into your car and stole a permanent fixture like a built-in stereo, your car insurance company will likely compensate you for the loss, as long as you have comprehensive coverage. Here’s what to know:

Comprehensive coverage

Comprehensive coverage is the only type of auto insurance coverage in Canada that covers theft or vandalism of your vehicle. More specifically, comprehensive coverage will protect you if your car is stolen or damaged in the process of being broken into. Examples of damage that may be covered include:

• Broken windows or mirrors
• Slashed tires
• Damaged door frames or locks
• Stolen or damaged keys or fob
• Stolen built-in stereos, steering wheel, hub caps, or catalytic converters
• A stolen car that was then crashed by the thief

With the "unreasonably high" amount of car thefts in Canada, comprehensive coverage has become an essential part of car insurance policies. While auto theft may have dropped nationwide in 2024 (down 18.6% from the year before), it’s still a big problem. According to Équité Association’s latest Auto Theft Trend Report, 57,359 personal vehicles were stolen across Canada last year.

On top of that, the Équité Association says only about 59.3% of stolen vehicles were recovered in 2024. That means roughly 40% never made it back to their owners.

To learn more about how car insurance companies work in Canada, how comprehensive coverage works, and how to add it to your auto insurance policy, contact BrokerLink today.

How home insurance or renters insurance covers stolen items from your car

So, as you now know, if you’ve left personal items in your car, like your phone, laptop, or golf clubs, they won’t be covered by your car insurance. But that doesn’t mean you’re completely out of luck.

This is where home insurance or renters/tenants insurance comes in. These policies include contents coverage, also known as personal property coverage, which protects your belongings no matter where the theft happens, even if it’s from your car. Here's an example:

You leave your work laptop in the backseat of your car while grabbing dinner. When you return, you discover your car has been broken into, and the laptop is gone. Fortunately, your renters insurance covers the loss under your contents coverage. After filing a claim and paying your deductible, you receive reimbursement based on the replacement cost value (RCV) of the laptop, allowing you to buy a new one of a similar kind and quality.

If you've discovered that your personal belongings have been stolen from your car, or if your car itself was stolen along with your personal belongings inside of it, your next step is to reach out to your home or tenant insurance provider to see if your policy covers stolen personal items under your contents coverage. However, there are a few things to keep in mind before you file a claim:

Home insurance deductible

Just keep in mind that any claim you file will be subject to your home insurance deductible. If the items you're trying to replace cost around the same as or less than your deductible, it's likely not worth filing a claim, especially if you have to pay a car insurance deductible on top of it.

However, if your home and auto insurance are bundled with the same company and you’re claiming both at the same time for the same reason, you might only have to pay one deductible instead of two.

Annual premium increase

One more thing to think about is that filing a home insurance claim will likely bump up your annual premium. So, before you go ahead, take a moment to weigh your options. If the stolen items aren’t that expensive, it might be more cost-effective to replace them yourself rather than dealing with a rate increase.

Policy exclusions

Some policies exclude high-value items like jewelry, expensive electronics, or collectibles unless they’re specifically listed on your policy as scheduled personal property. So even if you have contents coverage through your home or renters insurance, if these types of items are stolen from your car, you may not be covered.

Business equipment

Let’s say you’re a freelance photographer, and your professional camera and lenses are stolen from your car. Or maybe you’re a contractor and wake up to find your work tools missing from your truck. In most cases, standard homeowners or renters insurance won’t cover business-related losses, even if the items were in your personal vehicle.

If you regularly carry business equipment, you may need a commercial insurance policy, like commercial property insurance, or a home-business endorsement, to protect your work equipment, whether it's at home, in a car, or on location.

Steps to take if your belongings are stolen from your car

The process of reporting a car accident is much the same as reporting belongings stolen from a vehicle. Therefore, just as it’s important to know what to do if you are in a car accident, it’s equally important to know what to do if your car has been broken into. Follow the steps below if your personal belongings have been stolen from your car:

Contact the authorities

Start by calling your local police department to report the theft. When notifying the authorities, be prepared to provide some basic information about your vehicle and the circumstances surrounding the theft. They will likely ask for details about the alleged theft, such as the date, time, and location.

Depending on your area, you may be able to file the report over the phone or online. In some cases, the police may ask you to visit the station or send an officer to inspect your vehicle.

Document stolen items

Before moving anything in your car, take photos of the scene to document any damage or signs of forced entry. Then, make a detailed list of the stolen items, including descriptions, estimated values, and any serial numbers if available.

If you have receipts, photos, or proof of ownership, gather them as they can help support your insurance claim. In fact, your insurance company may require receipts, photos, or other proof that you owned the stolen items before approving your claim. Keeping a digital inventory of your valuable belongings ahead of time can make this step easier in case of theft.

Notify your insurance company

The last step is to contact your home or renters insurance company to see if your stolen belongings are covered. If your car was damaged during the theft, you'll also need to notify your car insurance company (unless both policies are with the same company).

If you want to file a claim(s), your insurance agent or insurance broker can walk you through the process. Once filed, an insurance adjuster will then assess your claim and determine the payout. When you contact your insurer, make sure you can provide as much information as possible. If you have a record of the police report you filed, provide that as well.

Tips to avoid having your belongings stolen out of your car

Taking steps to prevent auto theft is more important than ever. Simple habits like locking your car, keeping valuables out of sight, and using anti-theft devices can make a big difference. Since about 40% of stolen vehicles are never recovered, protecting your vehicle upfront is the best way to avoid the hassle and loss. Avoid the unfortunate reality of stolen belongings or even your vehicle by following these tips from BrokerLink below:

• Lock your vehicle at all times
• Hide your spare key well
• Do not leave your vehicle running
• Roll up your windows when parked
• Park in brightly lit areas or garages
• Install an anti-theft device in your car, like a car alarm or wheel locks
• Avoid leaving valuables in your car
• Install GPS trackers for expensive electronics
• Purchase comprehensive car insurance

Get in touch with BrokerLink for more information on car insurance

Start protecting your vehicle today with the right car insurance policy from BrokerLink. Whether you're looking forcar insurance in Toronto oranother Canadian city, a BrokerLink representative would be happy to help.

A BrokerLink insurance advisor can help with other car insurance-related tasks, like walking you through how to file an insurance claim after a stolen car or explaining how no-fault insurance works. Get in touch today to learn more about car insurance and theft protection in Canada. You can reach us by phone, by email, or in person at any one of our locations throughout Canada.

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