What is Auto Theft? - Insurance Navy. Auto theft, also known as motor vehicle theft or grand theft auto, is a criminal act that involves the unauthorized taking or stealing of another person’s motor vehicle without the owner’s consent. This can include cars, motorcycles, trucks, buses, snowmobiles, and other types of motor vehicles. Auto theft is considered a severe crime and is punishable by law.
The severity of the punishment often depends on the value of the vehicle stolen and the circumstances surrounding the theft. For instance, if the vehicle was stolen with the intent to sell it, use it in another crime, or dismantle and sell its parts, the penalties could be more severe. In the insurance context, auto theft is typically covered under the comprehensive coverage portion of an auto insurance policy.
It’s important to note that insurance companies require proof that the auto theft was genuine and not an attempt at insurance fraud.