“Does car insurance cover theft?” is among the first things you ask yourself. Depending on your type of car insurance and the circumstances, your insurance may or may not cover theft. Typically, comprehensive coverage will pay for both theft and break-in damage repairs. Liability insurance, which typically covers accident-related injuries and damage, typically does not cover theft. However, your car insurance will probably not cover the theft of your car and personal items, but your home, renters, or condo policy may. Keep reading to get to learn everything you need to know about this concept. Let’s dive in!
Does Car Insurance Cover Theft?
The stress of wondering if your insurance policy will cover the theft of your car is the last thing you need. The theft should be covered if your policy includes comprehensive car insurance. To find out exactly what’s covered and how much you could get, you should review the terms and conditions of your policy. However, you might not have much luck if your coverage isn’t thorough. Furthermore, keep in mind that although your car insurance may cover car theft, it usually does not cover any personal items left inside the vehicle.Â
What Kind of Car Insurance Covers Theft?
There are various types of car insurance available. The most fundamental type of car insurance is liability, which protects against property damage and personal harm. All states need it, with the exception of New Hampshire. If you’re concerned about the cost of repairs after a collision with another vehicle or a stationary object like a utility pole, collision insurance is an add-on policy that can help. Insurance for collisions or liability does not cover car theft.
You need a full-coverage policy if you want to make sure your car is protected in the event it is broken into or stolen. Comprehensive policies also cover damages brought on by accidents, animals, or natural disasters.
What Is Comprehensive Coverage?
If your car is stolen or damaged in some way that wasn’t your fault, comprehensive insurance can help pay for the costs. Perils that are frequently covered are water damage, falling objects (such as tree branches or hail), and vandalism. Comprehensive insurance typically pays for a portion of the theft of the vehicle itself, theft of auto parts, or damage brought on by a break-in (such as broken windows or door locks).
If you are leasing or buying your car, your lender will probably require you to have comprehensive coverage. Otherwise, comprehensive coverage is not required if you own your automobile outright.
How Does Comprehensive Coverage for a Stolen Car Work?
There is a coverage limit and deductible for comprehensive coverage. The deductible is the out-of-pocket expense for making an insurance claim. When you buy comprehensive coverage, you choose your deductible, say $500. The maximum amount that your policy will pay for a covered claim is known as the coverage limit. Your car’s depreciated value (also known as actual cash value) is probably going to be your comprehensive coverage.
You would report your car to the police and then make an insurance claim if it was stolen. In the event of a covered claim, your insurer would assist you in replacing your stolen car by writing you a check for the actual cash value less your deductible.
Remember that comprehensive insurance will not cover the cost of a rental car if your car is stolen. You would need rental reimbursement coverage on your car insurance policy in order to do so. During the course of an insured event, this optional coverage can help pay for things like car rentals and public transportation fares.
Does Car Insurance Cover Theft of Car?
Up to the maximum of your policy’s limits and less any applicable deductible, your comprehensive coverage can assist in covering the cost of the theft of any parts and repairing damage to your car that was the result of theft. Your high-tech sound system, installed after you purchased a comprehensive policy, is probably not covered. It’s possible to get supplementary insurance for your unique components.
Furthermore, your coverage might indicate whether original equipment manufacturer (OEM) or aftermarket parts would be used for the replacement. Keep in mind that, depending on your policy, depreciation may affect the cost of repairing the stolen parts of your car. If you want to know how your insurance will help you, you should read your policy and contact your insurer.
Insurance Reimbursement and Stolen Car Claims
If you have comprehensive coverage, you should contact the car insurance company as soon as possible if your car has been stolen. It’s likely that your insurer will look into the theft. Up to the amount of your comprehensive coverage maximum, your insurer will reimburse you for your stolen vehicle after the investigation into a covered claim is finished.
Is Catalytic Converter Theft Covered by Insurance?
Catalytic converter theft may be partially covered by car insurance if comprehensive coverage is included in your policy. If your catalytic converter is stolen or damaged in an accident, comprehensive insurance may assist you in paying for the cost of repairs or replacement, subject to the policy’s limits and your deductible. A National Insurance Crime Bureau (NICB) study claims that converters contain profitable metals that may be sold to recyclers, such as palladium and platinum. The NICB observes that while stealing the catalytic converter, criminals frequently cause quite a bit of damage to other components of the car. Comprehensive insurance might be able to cover that damage.
Does Car Insurance Cover Theft of Personal Items?
Car insurance does not cover the theft of your personal items from your car. Your motor policy may include optional personal property coverage, depending on your insurer. However, the personal property coverage of homeowners, renters, or condo insurance policies can aid in protecting your possessions even when they are not in your primary residence.
There is a coverage limit and deductible for personal property insurance. In fact, your policy may even say that coverage limitations for your personal goods are lower when they’re away from your residence. This is also known as “off-premises coverage.” To find out how much coverage you have for your belongings while they’re in your car, read your policy or speak with your insurance company.
Tracking Gadgets and Car Theft
Anti-theft and tracking equipment may help keep your vehicle secure and reduce the likelihood of theft. Installing a shifting column lock or steering wheel lock, for instance, would be something to think about. With both kinds of gadgets, it is more difficult for an intruder to steal your car. Tracking devices, often known as vehicle recovery systems, are useful for finding a stolen vehicle. This kind of technology is standard on the majority of new cars, but you might be able to buy and install one on an older vehicle.
Also, there are easy steps you can take to lessen the chance of car theft. It all begins with routinely locking your doors and parking in well-lit areas. Comprehensive coverage can also be useful if your car is stolen or suffers damage as a result of a break-in. You may feel more at ease knowing that your auto insurance policy includes this coverage in addition to the safety measures you’ve taken to secure your car.
Other Insurance Types That You Might Need
Even though it frequently covers damage from break-ins and vehicle theft, comprehensive insurance only covers the car itself. Your car insurance will not pay for personal items, such as a laptop or sporting goods, that were taken from within the vehicle. But if your car or other personal stuff is taken, chances are good that your renters or homeowners insurance will cover the loss.
To know what your policy covers and what it doesn’t make sure you read the fine print. Subsequently, you will submit two separate insurance claims: one to your homeowners or renters insurance for the personal items inside the car, and another to your car insurance for the car itself.
How Car Insurance Covers Theft
The following are ways car insurance covers theft:
#1. Comprehensive Coverage Protects Stolen Cars
If you have comprehensive coverage, your insurance will write you a check for the current worth of your car if it is stolen and not found. In the event that your car is found but was damaged during theft, comprehensive insurance should pay for the repairs. Your comprehensive deductible would be applicable in both circumstances.
It’s a frequent misperception that having “full coverage car insurance” makes you immune to auto theft. Many lenders describe full coverage as having both collision and comprehensive coverage on your policy, even though there isn’t officially a full coverage insurance plan. Comprehensive coverage, which offers theft protection and is usually less expensive than a collision policy, can be purchased separately from collision coverage, depending on your insurer.
It is highly recommended for your security and peace of mind in the event that your vehicle is stolen. It also includes coverage for glass breakage and vandalism, which can occur concurrently with theft.
#2. Vehicle Upgrades are Protected With Custom Parts and Equipment Coverage
The majority of car insurance policies do not pay for the replacement or repair of aftermarket or custom parts, or vehicle modifications that exceed a predetermined threshold. However, Progressive and most insurers offer custom parts and equipment (CPE) coverage, which is available for an additional fee and can cover stolen components or equipment.
Read Also: DOES CAR INSURANCE COVER WINDSHIELD REPLACEMENT?
Coverage for Gaps in Loans and Leases
Your insurance company will reimburse you for the car’s actual cash value (ACV) less your deductible if it is stolen. It’s likely that, due to things like interest and depreciation, the ACV value won’t be enough to pay off your loan or lease. Consider getting gap coverage, which can pay a portion of the difference between the total owed and the ACV, if the amount you owe exceeds the value of your car. This is what we call “loan/lease payoff” coverage at Progressive, and it often only costs $5 a month.
Does a Stolen Car Get Covered by Liability Insurance?
Nope. If you injure someone else or damage their property, liability insurance will pay for it; however, it will not pay for a stolen car. You won’t be protected from theft by collision coverage either. The only coverage that will cover vehicle theft or damage to your vehicle as a result of theft or break-in is comprehensive.
How to Respond if Your Vehicle is Stolen
When you find that your car isn’t where you parked it, it can feel like a nightmare come true. Prior to reporting it stolen, make sure the following are ruled out:
- Was it taken away after being illegally parked?
- Was it repossessed in case you were behind on your payments?
- Was it seized or did a creditor make a claim?
In the event that your vehicle was taken, report it right away. Remember that having a tracking device in your car could make it easier for the authorities to find it. Get in touch with your insurance provider as soon as possible to report a car theft after making a police report.
Can I Get an Anti-theft Discount?
Cars equipped with tracking devices or manual and passive alarms may qualify for reductions from some insurers. If the vehicle identification number of your automobile is etched in the window or door glass, you might even be eligible for a discount. In certain states, Progressive provides a discount against theft. State-specific requirements and thorough coverage determine eligibility.
How to Proceed If Someone Steals or Breaks Into Your Car
Make a report and give the police a call right away if your car is taken. The police will ask for basic information like the make and model, license plate number, and possibly the vehicle identification number. Next, find out if you’re covered by calling your insurance provider. If you believe that personal items were left inside the car, you should contact your renters’ or homeowners’ insurance provider.
The procedure is the same if you go back to your car and discover that it was broken into—perhaps with smashed windows or broken door locks. First, report the break-in to the police over the phone. After that, call your auto insurance provider and take pictures or videos to prove the damage. Additionally, give your homeowners or renters insurance provider a call if anything goes missing from inside the car.
How Much Will I Get if My Car Be Stolen?
Many insurance companies will pay out the “actual cash value” (ACV) of your vehicle if your claim is approved. Your policy’s terms will also affect the total. Based on the car’s age, make model, and typical wear and tear, an insurance company adjuster establishes its worth. Once the value of the car has been determined by the adjuster, you will often receive a check for that amount less any insurance deductible.
Are Stolen Items Covered by Car Insurance?
No, theft of the car and damage resulting from a break-in—such as damaged windows or an ignition—are covered by comprehensive auto insurance. However, personal items that are taken from within your car or that were in the car when it was stolen are not covered by your car insurance. The coverage for your personal items should be included in your renters’ or homeowners’ insurance.
What Happens If My Stolen Car Is Recovered?
Assume that when your car was stolen, you reported it to the police and made an insurance claim right away. However, a few weeks later, the police give you a call to inform you that your car has been found. Inform your insurance company over the phone as soon as possible. They will evaluate the car to decide if it’s a total loss or if they will cover the repairs if your claim is still being processed. The car belongs to your insurance company if your claim has already been settled, but you still own any belongings inside.
How Does Insurance Handle Lost or Stolen Items?
If something were to happen to your personal belongings, the money from your insurance policy would likely go toward replacing them. Your homeowners insurance policy’s payout after items are stolen may vary depending on the type of coverage you have. A stolen item will be valued at what it would cost to replace it at today’s pricing if you have “replacement cost” coverage.
Is a Stolen Bag Covered by Insurance?
It’s possible that your homeowners’ or renters’ insurance would replace lost luggage and other items, but there may be restrictions and a deductible to pay.
What Is Theft Insurance Called?
Generally speaking, comprehensive insurance helps pay for auto theft, stolen auto components, and damage from break-ins (including smashed windows or door locks). If you’re leasing or financing your car, your lender probably requires comprehensive coverage.
Does Mobile Insurance Cover Theft?
But you won’t have to worry about it if you have mobile insurance coverage. In addition to theft, a mobile insurance plan covers accidental drops, liquid damage, screen damage, and a host of other potential problems, as well as software damage or other hardware problems with these pricey devices.
Do I Have Theft Coverage?
The financial fallout from having your home broken into and your goods taken can be mitigated with the help of home insurance. The specifics will vary depending on your coverage, but your home contents insurance may reimburse you for the cost of replacing any stolen items.
Final Thoughts
I do hope this article has been able to answer every one of your questions on “Does car insurance cover theft”. So, let me hear from you in the comment section below!
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