Full Coverage: Does It Cover Theft?

Whether full-coverage auto insurance covers theft depends on the type of coverage you have. Comprehensive coverage will usually cover theft, as well as repair costs from break-in damages. However, liability insurance will not cover theft, as it usually protects against bodily injury and property damage resulting from an accident. Comprehensive coverage is optional and is the only way that car insurance reimburses you for theft.

Comprehensive coverage includes theft and damage

Comprehensive coverage is an optional add-on to your auto insurance policy that covers theft and damage to your vehicle. It is the only type of car insurance that covers theft. Comprehensive coverage will pay out for your stolen vehicle if it is not recovered, and it will also cover any resulting damage if it is recovered. Comprehensive coverage also covers theft of car parts, such as a catalytic converter, but not custom parts or equipment.

Comprehensive coverage will also pay to repair damage caused by a break-in or attempted break-in, such as broken windows or a damaged ignition. It 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 personal items stolen from your vehicle. For that, you would need to file a claim with your homeowners, renters, or condo insurance policy.

If you are financing or leasing your vehicle, your lender will likely require you to purchase comprehensive coverage to protect their financial interest. No state mandates that you have comprehensive insurance, but it is highly recommended for your protection and peace of mind.

Liability insurance doesn't cover theft

Liability insurance is the most basic form of auto insurance. It covers bodily injury and property damage resulting from an accident. This means that if you cause an accident, your liability insurance will cover the other person's bodily injuries and property damage. It will also cover your legal fees and court costs if you are sued. However, liability insurance does not cover theft. This includes theft of your vehicle or personal items inside it. If your car is stolen, liability insurance will not reimburse you for its value.

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 coverage for theft or damages from theft, you will need to add comprehensive coverage to your policy.

Comprehensive coverage is optional but highly recommended for protection against theft. It covers the theft of your vehicle and damage due to a break-in, such as smashed windows or a broken ignition. If your vehicle is stolen and not recovered, comprehensive coverage will reimburse you for its current value minus your deductible. If your vehicle is recovered but damaged, comprehensive coverage will pay for the repairs minus your deductible.

In addition to comprehensive coverage, you may also want to consider adding custom parts and equipment (CPE) coverage to your policy. This will protect any aftermarket or custom parts on your vehicle, such as custom rims or a stereo system, in the event of theft or damage.

It is important to note that neither liability insurance nor comprehensive coverage will cover the theft of personal items from your vehicle. For that, you will need to file a claim with your homeowners or renters insurance policy. These policies typically cover the theft of personal property, even items stolen from your car.

Personal property in a car isn't covered

If you have personal property in your car that is stolen, your auto insurance will not cover it. This includes items like laptops, phones, wallets, and sports equipment. Comprehensive auto insurance only covers the components and features that are permanent and pre-installed in your car.

If you want to be covered for personal items, you will need to take out a separate policy, such as homeowners or renters insurance. This type of insurance can help you recover stolen items from your vehicle, but it is important to check the exact terms and conditions of your policy so that you know what is and isn't covered. For example, some homeowners insurance policies have a lower limit for property stolen when you are not at home.

It is also worth noting that if you have custom parts and equipment in your car, you may need to add an endorsement to your policy to cover them. This is because most auto policies won't cover the replacement or repair of aftermarket, custom parts, and car modifications over a certain amount.

Home/renters insurance covers personal property

Homeowners insurance covers the building you live in and associated structures such as garages. It also covers personal property, including furniture, appliances, clothing, jewelry, and dishes. Most lenders will require you to take out homeowners insurance when taking out a mortgage.

Renters insurance is for tenants to cover liability and their personal property. It covers personal property or personal belongings, including furniture, clothing, shoes, electronics, appliances, kitchen equipment, and home goods. It also covers most sports and hobby equipment, such as bicycles and musical instruments. It also covers personal liability, additional living expenses, and guest medical expenses.

Personal property coverage is what most people think of when it comes to renters insurance. It covers personal belongings, including things like furniture, clothing, shoes, electronics, appliances, kitchen equipment, and home goods. It also covers most sports and hobby equipment, such as bicycles and musical instruments.

Certain personal belongings may be excluded from a standard policy if they're above a certain value, such as jewelry, artwork, collectibles, and specialized computer or hobby equipment. You can add coverage for items that exceed standard coverage limits.

You may be able to choose between two types of personal property coverage: actual cash value and replacement cost coverage. Actual cash value compensates you for what your items are worth in their present-day condition, while replacement cost coverage provides compensation to replace old possessions with new ones.

Comprehensive covers theft with or without keys

Comprehensive auto insurance covers theft, whether your keys were in the car or not. This is the only type of car insurance that covers theft of the vehicle itself.

Comprehensive coverage is optional, so you will not be covered if you only have the state-required coverage. However, if you do have comprehensive coverage, it will pay for your stolen vehicle if you don't recover it. It will also cover any resulting damages, such as broken windows, if the car is recovered.

The payout you receive will depend on the actual cash value (ACV) of your vehicle, minus your deductible. Comprehensive coverage will also pay to replace certain car parts that are stolen, such as a catalytic converter, but not custom parts or equipment.

It's important to note that comprehensive auto insurance does not cover personal items stolen from your car. For that, you'll need to check your homeowners, renters, or condo insurance policy.

Frequently asked questions