Auto Insurance: Break-Ins Covered?

If your car is broken into, your auto insurance will cover the damage to your vehicle if you have comprehensive coverage. Comprehensive coverage includes broken windows, damaged locks, and dismantled ignition systems. However, comprehensive coverage does not pay to replace belongings taken from within your car; this requires renters or homeowners insurance.

Comprehensive coverage

If you choose to add comprehensive coverage to your auto insurance policy, keep in mind that you will need to pay a deductible before your insurance company will reimburse you for any damage. Additionally, filing a claim may cause your insurance rates to increase at renewal time.

Renters or homeowners insurance

If your car is broken into, your auto insurance will not cover the cost of stolen personal property. This includes items such as smartphones, laptops, credit cards, and driver's licenses. Instead, you will need to file a claim under your renters or homeowners insurance policy to receive reimbursement for these items.

Home insurance is generally more expensive than renters insurance because it includes the cost of insuring the dwelling and any other attached structures, such as a detached garage or fence. On average, renters insurance costs between $15 to $20 a month, or $180-$200 a year, while a home insurance policy costs an average of $1,500 per year.

Filing a police report

• Contact the Police: Call your local police department's non-emergency number to report the break-in. Ask if an officer will be dispatched to the scene or if you need to go to the police station to file the report. Some police stations may also allow you to file a report over the phone or online.
• Provide Necessary Information: When filing the report, make sure to have the following information ready:

• Your driver's license
• Vehicle registration information
• Insurance information, including your auto insurance ID card or policy declaration page
• Photographs of the damage to your car, including all sides of the vehicle and close-ups of any visible damage such as broken windows or forced entry.
• A detailed list of any property that was stolen, including personal items and documents.
• The approximate date and time of the theft or vandalism.

• Be Aware of the Reporting Process: In some cases, the police may require evidence collection, photography, or other investigative procedures, which means an officer will need to respond to the scene of the crime. If you are asked to come to the police station, avoid driving the damaged car there, as you don't want to interfere with any evidence. Instead, use public transportation or ask a friend or family member for a ride.
• Follow-up as Needed: After filing the initial report, the police may contact you for further information or to provide updates on their investigation. Ensure you provide any additional information they may need and stay in communication with the investigating officer or department.

Remember, filing an accurate and detailed police report is crucial, as it will not only help the police in their investigation but also support your insurance claim process.

Fraud alerts and credit freezes

If any sensitive documents, such as those listing details for a bank account or credit card, are stolen during a car break-in, it is recommended that you place a fraud alert on your credit record. This will make it harder for someone to open a new credit account in your name, as a business must first verify your identity.

There are three main types of fraud alerts:

• Fraud alert: This basic type of alert is available to any consumer who suspects fraud. It lasts for a year and can be renewed.
• Extended fraud alert: This lasts for seven years and is available to consumers who have been victims of identity theft and have filed a report with either IdentityTheft.gov or the police. Credit bureaus will also take your name off marketing lists for credit and insurance offers for five years unless you ask to stay on.
• Active-duty fraud alert: This alert is designed for military service members and lasts a year. It can be renewed for the length of deployment. Credit bureaus will remove your name from marketing lists for unsolicited credit and insurance offers for two years, unless you ask them not to.

To place a fraud alert, contact one of the three credit bureaus: Equifax, Experian, or TransUnion. The credit bureau you contact must then tell the other two.

A credit freeze, on the other hand, restricts access to your credit report, meaning you or others won't be able to open a new credit account while it is in place. A credit freeze lasts until you remove it. To freeze your credit, you will need to contact each credit bureau separately.

Both fraud alerts and credit freezes are free. Fraud alerts are simpler to put in place, but credit freezes offer better protection. Fraud alerts also expire automatically, while credit freezes last until you remove them.

Deductibles

A car insurance deductible is the amount you have to pay out of pocket when you file an insurance claim. You can choose between a low and high deductible. A low deductible means a higher insurance rate, while a high deductible means a lower insurance rate. For example, if you have a $500 deductible and $3,000 in damage from a covered accident, your insurer will pay $2,500 to repair your car, and you'll be responsible for the remaining $500.

Comprehensive coverage will cover repairing damage to your car, but it will typically only pay for damages after you've paid your policy's deductible. If your deductible is higher than the cost of the damage or theft, you won't get any money from your insurer. For example, if your car costs $700 to repair and your comprehensive coverage deductible is $1,000, making an insurance claim won't benefit you.

Insurance companies will give you cheaper rates when you select a higher deductible because you carry more of the responsibility for costs in a claim. A higher deductible also means you won't file smaller claims. However, you need to balance your premiums with what you can afford to pay if you have to file a claim.

According to the Insurance Information Institute, increasing your deductible from $200 to $500 can make you eligible for a 15 to 30% premium discount, while raising the deductible to $1,000 can save you up to 40%. However, this varies depending on the state in which you live, the cost of your coverage, your driving record, and your car's cost to repair or replace.

Some insurers offer a "disappearing deductible" program that lowers your deductible by a set amount for each violation- and claim-free policy period. After a certain number of policy periods, you can end up with a $0 deductible for comprehensive or collision claims. However, your deductible typically resets to its original amount after filing a claim.

Frequently asked questions