Auto Insurance And Stolen Vehicles: What's Covered?

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

If you have comprehensive coverage, your insurance company will pay the current value of your vehicle, minus your deductible. Comprehensive coverage will also cover stolen parts of your car, such as a catalytic converter or stereo, but it won't cover personal items inside the car, such as a laptop or wallet. For that, you'll need a homeowners or renters insurance policy.

Comprehensive coverage includes theft and damage

Comprehensive coverage is an optional coverage that protects your vehicle from damage caused by incidents other than collisions. This includes theft and attempted theft, as well as damage caused during the theft of a vehicle. Comprehensive coverage also includes vandalism, which may include broken windows or other damage resulting from a theft.

Comprehensive coverage will cover the cost of repairs to your vehicle, as well as the cost of replacing a stolen vehicle. This coverage is limited to the actual cash value of your vehicle. You will be responsible for paying a deductible, which is the amount you agree to pay upfront before the insurance company starts paying for damages. The higher the deductible, the lower your insurance cost will be.

Comprehensive coverage also covers the theft of specific parts of your car, such as your keys. However, it does not cover personal property inside your car. To insure personal belongings, you will need renters or homeowners insurance.

Comprehensive coverage is not required by law in any state, but it is usually required by lenders if you are leasing or financing your vehicle. If you own your vehicle outright, you can decide whether to add this coverage.

Liability insurance does not cover theft

Liability insurance is a legal requirement in most states, and it covers the other driver's losses when you cause an accident. This includes the other person's bodily injuries and property damage, as well as your legal fees and court costs if you get sued. However, liability insurance does not cover theft of your vehicle or personal items inside it.

Liability insurance only covers damages to other people and their property. It does not provide any protection for you or your vehicle in the event of theft. If you want to be protected against theft, you need to add comprehensive coverage to your policy.

Comprehensive coverage will cover the theft of your vehicle and any damage caused by theft or a break-in. It will also cover vandalism, such as broken windows or a damaged ignition system. However, it will not cover personal property inside your car, such as a wallet or phone. To protect your personal belongings, you need homeowners or renters insurance.

In summary, liability insurance alone will not cover theft. To ensure you have adequate protection against theft, it's important to review your policy and consider adding comprehensive coverage. That way, you can have peace of mind knowing that you're protected in the event of vehicle theft or damage.

File a police report immediately

If you suspect your car has been stolen, it's important to file a report with the police as soon as possible. This gives you the best chance of finding your vehicle. According to the National Insurance Crime Bureau, 35% of stolen vehicles are recovered the day they were stolen, and 45% are found within two days.

Acting quickly to report the theft can get the ball rolling with other processes, such as your insurance company opening a claim. Your insurance company may not be able to help you until the theft has been reported to law enforcement. You can file a police report by calling your local department's non-emergency number. Some police departments also have an online crime-reporting portal.

Before you file a report, gather the necessary documentation:

• Your contact information
• License plate number and Vehicle Identification Number (VIN)
• Car make, model, colour, and year
• Date and time you last saw the car
• Where the car was parked at the time of the theft and a description of the area
• Whether your car has a GPS system

If you have comprehensive coverage, you can begin a claim to get compensated for the loss of your vehicle. Filing this claim starts the process of getting compensated for the car if it is never returned or paying for repairs if it is recovered. Comprehensive coverage could help pay for a broken window or compromised ignition system, for example.

If you had personal items in your vehicle at the time of the theft, you may also need to file a claim with your renters or homeowners insurance company. Check to see if your policy covers items stolen from your vehicle.

Contact your insurance company

Contacting your insurance company is a crucial step to take when your vehicle has been stolen. Here are some detailed instructions on what to do:

Firstly, it is important to understand that only comprehensive car insurance covers the theft of a vehicle. If you have liability-only insurance or collision coverage, your insurance will not cover the theft. So, before contacting your insurance company, check your policy to confirm that you have comprehensive coverage. Comprehensive coverage will also cover any damage done to your car if it is broken into, such as a broken window or damaged lock.

Once you have confirmed that you have comprehensive coverage, contact your insurance company as soon as possible to start the claim process. The sooner you make a claim, the sooner your insurance company can begin working on your case. When you make the call, you will need to provide as much information about your car as possible, including:

• The location of all keys to the vehicle before and after the theft
• Names and contact information of everyone who had access to the vehicle
• A description of your vehicle, including mileage, service records, and upgrades
• Contact information for your auto lender, if you have one
• Your insurance policy account number

Your insurance company may also run a credit check to verify that you are in good financial standing. It is important to note that if you have significant debt and file a claim for a stolen vehicle, your claim may be denied as there is a risk of insurance fraud.

If you are leasing or financing your vehicle, notify the lender as soon as possible. You may be able to pause your loan payments while your car is missing.

Understanding Your Payout

Comprehensive insurance covers up to the actual cash value (ACV) of your car, minus your deductible (an amount you set when you purchase car insurance). The ACV is the replacement value of your car, minus depreciation from wear and tear. The insurance adjuster will consider factors such as your car's make and model, age, accident history, and Kelley Blue Book (KBB) value to determine the ACV.

If your stolen car is recovered, your insurance company will likely take ownership of your car. However, if you haven't bought a replacement vehicle, you may have to return the claim amount, which is handled on a case-by-case basis with your insurance company.

Personal items inside the car are not covered

Personal items inside a car are generally not covered by auto insurance policies. This means that if your personal items are stolen from your car, you will not be reimbursed by your auto insurance provider. However, comprehensive coverage will pay for the theft of the vehicle itself and sometimes for the theft of specific parts.

In rare cases, some insurance companies offer personal property coverage for an additional fee, which would cover the theft of personal items. If you routinely carry expensive items in your car, you should contact your insurance agent to discuss a solution. It may be possible to increase your coverage limit or schedule certain items for protection. However, if you frequently transport expensive items due to a hobby or work, you may need to purchase an inland marine or commercial auto insurance policy.

Homeowners or renters insurance policies may also provide coverage for personal items stolen from your car. Some of these policies include "off-premises" coverage for personal items and losses that occur away from the home. There may be limits on reimbursement amounts, and certain exclusions may apply to specific item types, such as expensive artwork.

It is important to note that auto insurance policies vary, and it is always recommended to carefully review your specific policy to understand what is covered and what is not. Contact your insurance provider or agent if you have any questions or require additional clarification.

Frequently asked questions