Alyssa Lane
Auto theft insurance, also known as comprehensive coverage, is an optional add-on to your car insurance policy that covers the cost of a stolen vehicle. Comprehensive coverage will pay out the actual cash value (ACV) of your car, minus your deductible, if your car is stolen and not recovered. If your car is recovered but damaged, comprehensive coverage will pay for the repairs. Comprehensive coverage also covers the theft of car parts, such as tires, rims, or catalytic converters, and damage to your car during a break-in. However, it is important to note that comprehensive coverage does not include personal property stolen from your car, such as laptops or phones, which would be covered by your home or renter's insurance.
| Characteristics | Values |
|---|---|
| What type of insurance covers auto theft? | Comprehensive coverage |
| What does comprehensive coverage include? | Car replacement costs, repair costs for damage during theft attempts, replacement costs for commonly stolen parts, and damage from environmental factors |
| What does comprehensive coverage not include? | Personal property and valuables left in the car, aftermarket or custom parts |
| What else can you claim on besides comprehensive coverage? | Custom Parts and Equipment (CPE) coverage, gap insurance, new car replacement coverage |
| What should you do if your car is stolen? | File a police report, file an insurance claim, be available for follow-up questions |
What You'll Learn
Comprehensive coverage
- Damage to your vehicle if someone attempts to steal it
- Damage to your vehicle if it’s stolen and later recovered
- Commonly stolen parts, like catalytic converters, tires, wheels, batteries, and tailgates
- Damage from other environmental things, like vandalism, fire, floods, fallen trees, hail, or other acts of nature
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Stolen and not recovered
If your car is stolen and not recovered, comprehensive auto theft insurance will pay out for the vehicle. This is the only type of auto insurance that covers theft. Comprehensive coverage is optional, so if you only have the state-required coverage, you won't be covered.
Comprehensive insurance will pay out the actual cash value (ACV) of the car, minus your deductible. The ACV is the current market value of the car, taking into account depreciation, age, mileage, and condition. This amount may not be enough to pay off any remaining car loan or lease, so you may want to consider purchasing gap coverage to cover the difference.
If your car is leased or financed, your lender will likely require you to have comprehensive coverage to protect their financial interest.
It's important to note that comprehensive auto theft insurance does not cover personal items stolen from your car, such as laptops, phones, or wallets. These items may be covered by your home, renters, or condo insurance.
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Stolen and recovered
If your vehicle is stolen and recovered, you should inform your insurance company immediately. If your car has sustained damage, your comprehensive coverage can pay for repairs up to any limits and minus your deductible.
Comprehensive coverage will cover any resulting damages like broken windows and other vandalism that occurred during the theft. It will also cover the replacement of parts that are stolen or damaged, such as catalytic converters, tires, rims, or the vehicle's sound system.
If your car is stolen and recovered, your insurer will cover any damages under your comprehensive add-on, and you will be responsible for paying the deductible.
In some cases, your recovered car might be considered a total loss due to the cost of repairs. If the claim hasn't been paid and your recovered car is totaled, your insurer would pay the actual cash value (ACV) of the vehicle, minus your deductible.
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Items stolen from the vehicle
If you have items stolen from your vehicle, your auto insurance will not cover the loss. This is true even if you have comprehensive coverage. Comprehensive coverage only applies to the vehicle itself and certain permanent parts.
However, you may be covered for items stolen from your vehicle under a different type of insurance policy. For example, your homeowner's, renter's, or condo insurance policy may cover personal belongings stolen from your car. You may also be covered by electronic device insurance if the stolen item was an electronic device.
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Actual cash value
The actual cash value (ACV) of a car is the amount of money it is worth in the present day. It is the amount that the car could be sold for, factoring in depreciation. Cars depreciate quickly, so the ACV will usually be less than the price paid for the car, even if it is not very old.
When a car is stolen and not recovered, auto theft insurance will pay out the ACV of the car, minus the deductible. The deductible is an amount set by the policyholder when purchasing the insurance. The ACV is calculated based on the car's make and model, age, accident history, mileage, wear and tear, and other details.
It is important to note that auto theft insurance will not cover the cost of personal property stolen from inside the car, such as laptops or phones. This would be covered by homeowners or renters insurance.
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Frequently asked questions
Auto theft insurance covers the cost of replacing your car if it is stolen and not recovered. It also covers the cost of repairing any damage to your car if it is stolen and then recovered.
Auto theft insurance does not cover the cost of replacing personal items stolen from your car, such as a laptop or phone.
Comprehensive coverage is the only type of insurance that covers auto theft.
