Auto Insurance: Stolen Item Coverage

Whether auto insurance covers stolen items depends on the type of insurance you have and what was stolen. Comprehensive car insurance covers theft of the vehicle and damage due to a break-in, but it does not cover personal items that were inside the car. For personal items, you'll need to file a claim with your homeowners or renters insurance company.

Comprehensive coverage includes theft of items attached to your car

Comprehensive coverage is an optional type of auto insurance that covers theft and damage to your car. It is the only type of car insurance that covers theft. Comprehensive coverage will pay out for the theft of your vehicle and certain types of vehicle damage, up to the actual cash value of your car, minus your deductible. This includes theft of items attached to your car, such as a catalytic converter, but not custom parts or equipment, like an aftermarket sound system.

Comprehensive coverage will also pay to repair damages caused by theft, car break-in, or attempted break-in. If your stolen car is recovered and needs to be repaired, comprehensive coverage will also pay for those repairs.

Comprehensive coverage is not required by state law, but if you finance or lease your vehicle, your lender will likely require you to purchase it to protect their financial interest. The average cost of comprehensive coverage is $298 per year.

While comprehensive coverage will pay for the theft of items attached to your car, it will not cover the theft of personal items inside your car, such as a laptop or wallet. To insure your personal belongings, you will need a separate homeowners, renters, or condo insurance policy.

Liability insurance doesn't cover theft of personal items

Liability insurance is the most basic form of auto insurance and is mandatory in all states except New Hampshire. It covers bodily injury and property damage claims if you cause an accident. However, it does not provide any protection for you or your vehicle, including theft. Therefore, liability insurance does not cover the theft of personal items.

Liability insurance only covers the other driver's losses when you are at fault in an accident. It pays for the other person's bodily injuries, property damages, and legal fees if you are sued. It does not cover any damages or losses you may incur, including theft of your vehicle or personal items inside it.

If you want protection against theft, you need to consider adding comprehensive coverage to your auto insurance policy. Comprehensive coverage will reimburse you for the car's current value if it is stolen and not recovered. It also covers damage to your vehicle due to theft or break-in, such as broken windows or a damaged ignition. However, comprehensive coverage does not include personal belongings stolen from your car.

To protect your personal items, you will need a separate policy, such as homeowners or renters insurance. These policies typically cover theft of personal property, even if it is stolen from your vehicle. They provide reimbursement for stolen items, although there may be coverage limits for valuable items like electronics or jewelry.

Home or renters insurance covers personal items stolen from your car

If your personal items are stolen from your car, your auto insurance policy will not cover them. However, your homeowners or renters insurance policy will likely cover them.

However, there are limits to how much you can be reimbursed, and there may be exclusions for certain item types, such as expensive art. Many policies use an off-premises coverage limit of 10% of your personal property limit, which may not be enough to cover the cost of the items stolen. For example, if your personal property limit is $35,000, the sub-limit for cash is unlikely to exceed $250.

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. 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.

To make a theft claim, you will need a police report, a list of the items stolen, and their estimated value. If you have receipts for the original items, that is even better.

Custom parts and equipment (CPE) coverage can be added to your auto policy

Custom Parts and Equipment (CPE) coverage is an endorsement to your car insurance policy that covers permanently installed custom parts, devices, accessories, enhancements, and changes other than those installed by the original manufacturer. This includes modifications that alter the performance or appearance of your vehicle.

CPE coverage is not mandatory, but it is highly recommended if you have invested in custom parts for your vehicle. Standard insurance policies will not cover modifications to your car, so without CPE coverage, you will have to pay for any repairs or replacements yourself.

• Custom wheels, such as alloy or magnesium wheels
• Permanently installed electronic equipment, like stereos and TVs
• Decals or custom paint jobs
• Running boards, roll bars, camper shells, etc.
• Performance equipment, such as spoilers or suspensions
• Aftermarket seats or leather seats not installed by the car manufacturer
• Anti-theft devices not installed by the car manufacturer
• Dealer-installed parts not offered by the original manufacturer

It's important to note that CPE coverage does not include all modifications. Excluded items include:

• Any modification declared illegal by the government, such as underbody lighting or dark windshield tinting
• Modifications that exceed the limit of the policy
• Types of equipment used for snow plowing
• Suspension kits that raise your vehicle higher than 4 inches
• Homemade modifications

The cost of CPE coverage varies, but it typically ranges from $5,000 to $20,000. It is best to contact your insurance company to get a comprehensive list of what is and isn't covered, as coverage limits can depend on your state and insurance company.

Personal property coverage has lower limits for certain item categories

Auto insurance does not typically cover the theft of personal belongings. However, comprehensive auto insurance will cover the theft of the vehicle itself, as well as repair costs for damage caused by a break-in.

If you want to protect your personal items, you will need to look into personal property coverage, which is a part of homeowners, renters, and condo insurance policies. This type of insurance covers the cost of replacing or repairing your belongings if they are stolen, damaged, or destroyed. However, it's important to note that certain categories of personal property, such as rare or valuable items like art, jewelry, and antiques, typically have lower coverage limits. These are known as "sub-limits".

For example, your policy might include $100,000 in personal property coverage, but only a small set amount for a specific item or category of items. This could include items such as furs, precious/semi-precious stones, property used primarily for business, and watercraft and trailers.

If you own expensive belongings, you may be able to increase the coverage limits by adding a personal property floater or a similar enhancement to your policy. This will raise your premium but will provide additional protection for your high-value items.

Additionally, some homeowners and renters insurance policies include "off-premises" coverage, which extends to personal items and losses that occur away from the home, such as items stolen from your car. However, there may be lower limits on how much you can be reimbursed for these items, typically around 10% of your personal property coverage limit.

To ensure you have adequate coverage for all your belongings, it's important to review your insurance policy carefully and consider increasing your coverage limits if needed.

Frequently asked questions