Grand Theft Auto: Understanding Insurance Coverage

Whether your insurance covers grand theft auto depends on your policy. Comprehensive coverage is the only type of car insurance that covers theft or vandalism of your car. It will also cover thefts of specific parts of your car, such as your keys or catalytic converter. However, personal property inside your car, such as a laptop or phone, is typically not covered by auto insurance, but by home, renters, or condo policies. If your car is stolen and not recovered, comprehensive coverage will pay the current value of your vehicle, minus your deductible.

Comprehensive coverage

If you have a car loan or lease, your lender may require you to purchase comprehensive and collision insurance together. This can significantly increase your insurance bill as collision insurance can cost twice as much as comprehensive coverage, or more. However, you can still find a reasonable rate by shopping around and comparing car insurance rates.

Stolen catalytic converter

A catalytic converter is an essential part of your vehicle, designed to reduce the pollutants and toxic gases produced by your emissions system. It uses precious metals like platinum, rhodium, and palladium to complete this process. Thieves have been stealing catalytic converters from cars to sell these metals for scrap. This has been happening for years, but there has been a recent increase in catalytic converter theft, possibly due to the economic fallout from the pandemic.

If your catalytic converter is stolen, you should take the following steps:

• Contact the authorities immediately. They will check local security cameras and work to catch the thief. A police report may also be essential for your insurance coverage.
• Contact your insurance company. If you have comprehensive coverage on your auto insurance policy, you're typically covered against catalytic converter theft. Comprehensive coverage will pay to replace the stolen catalytic converter and repair any related damage from its removal.
• Visit a mechanic. An expert can discuss your repair options and prevent you from driving without your catalytic converter, which can be hazardous.

You can also take some preventative measures to deter catalytic converter theft:

• Install a protective device. These installations make it impossible for anyone to cut off your catalytic converter.
• Park in a garage, well-lit area, or highly populated location.
• Install motion sensor security lights if you have to park in a driveway.
• Have your Vehicle Identification Number (VIN) etched on your converter and spray it with highly visible, high-heat paint.

Damage during theft

If you want to be covered for damage to your car during an attempted or actual theft, you need to take out comprehensive insurance. Comprehensive coverage will pay for repairs to your vehicle if it is damaged during a break-in or theft. This includes damage such as broken windows or door locks, or if the thief takes the car and crashes it.

Comprehensive insurance is optional and is not required by any state. It is the only type of insurance that covers theft of, or damage to, your vehicle. Collision coverage, for example, will not cover theft.

Comprehensive insurance will also cover the cost of replacing custom parts, paint, rims, and other aftermarket additions, depending on your policy. You can also add custom parts and equipment (CPE) coverage for an additional cost to cover the cost of stolen or damaged custom parts.

If your car is stolen and not recovered, comprehensive insurance will pay out the current value, or actual cash value, of your vehicle, minus your deductible.

If you have an older car, it may not be worth taking out comprehensive insurance. Compare the value of your car to the cost of your deductible and how much you pay for coverage. If there isn't much difference, comprehensive insurance may not be worth the cost.

Personal items inside the car

If your car is stolen, it can be a traumatic experience. Not only do you have to deal with the loss of your vehicle, but you may also have valuable personal items inside that are now gone. So, what happens next? Will your insurance cover the personal items inside your car during grand theft auto?

The short answer is that, in most cases, your auto insurance will not cover the personal items stolen from your car. Standard auto insurance policies typically do not include coverage for personal belongings. So, if you had a laptop, phone, wallet, or other valuables inside your car when it was stolen, your auto insurance will not reimburse you for those losses.

However, there are certain steps you can take to protect your personal items and seek compensation. Here's what you need to do:

• Report the theft: As soon as you realize your car has been stolen, contact the police and file a police report. This is crucial, as it helps in the recovery of your vehicle and also initiates the process of seeking compensation.
• Contact your auto insurance company: Even though they may not cover your personal items, it's important to notify your auto insurance company about the theft. If you have comprehensive coverage, they will guide you through the process of claiming for the stolen vehicle.
• Understand your comprehensive coverage: Comprehensive coverage is the type of auto insurance that covers theft. It pays for the theft of the vehicle itself and sometimes for the theft of specific parts. Review your policy to understand what is covered.
• Check your homeowner's or renter's insurance: Your homeowner's or renter's insurance policy may provide coverage for personal items stolen from your car. These policies often cover property stolen from your home and your vehicle. Contact your insurance provider to file a claim for the lost items.
• Understand coverage limitations: Keep in mind that homeowner's or renter's insurance policies may have limitations on the amount of reimbursement and certain exclusions for specific items, such as expensive artwork. Review your policy carefully to understand what is covered and any applicable limits.
• Increase your coverage if needed: If you routinely carry expensive items in your car, consider contacting your insurance agent to discuss increasing your coverage limits or scheduling certain high-value items. This will provide added protection in case of future incidents.

While it's unfortunate that auto insurance typically doesn't cover personal items inside a stolen car, there are steps you can take to mitigate the financial impact. By having comprehensive coverage for your vehicle and understanding your homeowner's or renter's insurance policies, you can ensure that you have the necessary protection in place. Remember to always be proactive about protecting your valuable belongings and take preventive measures to secure your vehicle and personal items.

Gap insurance

When a vehicle is declared a total loss, the insurer pays out the insured value of the car, minus your deductible. This payout may be significantly less than the amount you still owe on the vehicle loan. Gap insurance covers this difference, ensuring you are not left with a large bill for a car you can no longer drive.

What Gap Insurance Doesn't Cover

It's important to note that gap insurance does not cover theft directly. Instead, it works in conjunction with comprehensive insurance, which covers the cost of a stolen vehicle. Gap insurance can then cover the difference between the comprehensive insurance payout and the amount you still owe on the vehicle loan.

When to Cancel Gap Insurance

Frequently asked questions