Auto Insurance And Theft: What You Need To Know

Whether your auto insurance covers theft depends on the type of insurance you have. Comprehensive coverage will usually cover theft, as well as repair costs from break-in damages. It will also cover the current value, or actual cash value, of your vehicle if it is stolen and not recovered. However, liability insurance likely won't cover theft, as it usually protects against bodily injury and property damage resulting from an accident.

Comprehensive coverage

Comprehensive insurance also covers damage to your vehicle from problems such as vandalism, fires, floods, hail, falling objects (like tree branches), and collisions with animals (like deer). Comprehensive coverage does not, however, cover the cost of a rental car while your vehicle is being repaired. If you want coverage for a rental car, you will need to add rental reimbursement insurance to your policy.

Liability insurance

If you want insurance that covers theft of your vehicle, you need comprehensive coverage. Comprehensive insurance covers theft of the vehicle and damage due to a break-in, such as smashed windows or a broken ignition. It also covers damage from storms, falling objects, or animals. Comprehensive coverage is optional but highly recommended for protection against theft. It typically costs about $12 per month on average.

In the case of theft of personal items from your car, your renters or homeowners insurance policy will likely cover this.

Collision insurance

The cost of collision insurance can be high, but there are ways to reduce premiums, such as choosing a higher deductible. Collision coverage is particularly important for protecting against financial loss due to physical damage to a vehicle. While it may not be mandatory, it provides valuable protection in the event of an accident, which can happen to anyone.

In summary, collision insurance is a valuable addition to basic auto insurance, offering financial protection in the event of a collision. It covers the cost of repairs, even if the insured driver is at fault, but it does not include damage caused by theft or vandalism.

Personal property

Auto insurance typically does not cover personal property stolen from your car. This includes items such as laptops, wallets, cell phones, and other personal belongings. However, these items may be covered by a different type of insurance policy, such as a homeowners, renters, or condo insurance policy.

Homeowners, renters, or condo insurance policies typically include personal property coverage, which protects your possessions (usually up to specified limits) regardless of their location. This means that items stolen from your car may be covered under these types of insurance policies.

It is important to note that there may be limitations or exclusions to personal property coverage under homeowners, renters, or condo insurance. For example, some policies may have lower limits for property stolen when you are away from home, or there may be specific categories of items that have lower coverage limits, such as jewelry or electronics. Additionally, some policies may require you to purchase additional coverage for high-value items.

To understand your specific coverage, it is recommended to review the terms and conditions of your insurance policy or consult with your insurance provider.

Rental reimbursement insurance

If you've ever been in a situation where your car has been stolen, you know how stressful it can be. And one of the first questions that comes to mind is whether your auto insurance covers theft.

The good news is that if you have comprehensive coverage as part of your policy, it typically covers theft. Comprehensive coverage is optional, so if you only have the state-required coverages, you won't be protected in case of theft. Comprehensive coverage will usually cover the cost of your stolen vehicle if it isn't recovered, as well as repair costs for any damage caused during a break-in. It's important to note that personal property stolen from your car, such as electronics or wallets, won't be covered by auto insurance. However, these items may be protected under your home, renters, or condo insurance policy.

Now, let's talk about rental reimbursement insurance and how it can help in these situations.

• Daily and Per-Claim Limits: Rental reimbursement coverage has daily limits on rental expenses and a maximum limit per accident claim. For example, your insurer might reimburse you up to $30 per day for rental costs, with a total limit of $900 per claim.
• Transportation Expenses: Some auto insurance companies may reimburse you for transportation expenses other than rental cars. This could include Uber rides, city buses, or train fares.
• Deductibles: Rental reimbursement insurance typically doesn't have a deductible, so you won't have an amount subtracted from your claims check. However, you will have a deductible on your collision and comprehensive coverage for repairs to your car.
• Rental Company Partnerships: Some insurers have partnerships with specific rental car companies, allowing for seamless billing between the rental company and your insurance provider. If you choose to rent from a different company, you may need to pay upfront and then seek reimbursement.
• Policy Discounts: Policy discounts, such as multi-car discounts, often apply to rental reimbursement coverage, making it more affordable to add to your policy.
• Exclusions: It's important to note that rental reimbursement coverage doesn't apply to routine maintenance or vacation rental cars. It is specifically for times when your car is being repaired due to a covered incident.
• Cost: The cost of rental reimbursement coverage varies by insurer and location, but it is generally inexpensive, typically ranging from $25 to $100 per year, depending on the level of coverage.

Frequently asked questions