Does Car Insurance Cover Theft?

Car theft is a terrifying experience that leaves victims anxious and worried. Finding out that your car insurance covers theft may be one bright spot in an otherwise bleak situation. Although many types of car insurance cover vehicle theft, whether your policy does or does not depends on the specific terms and conditions of the coverage you've chosen to purchase. Also, keep in mind that even if you have a policy that covers vehicle theft, personal property in the stolen vehicle is not covered. Claims are filed with your homeowners or renters insurance for this purpose.

Liability vs. Comprehensive Car Insurance

There are several types of car insurance. The most fundamental is liability, which is required in all states except New Hampshire. Collision insurance assists in the payment of additional damages in the event of an accident. Vehicle theft is not covered by either liability or collision insurance.

A comprehensive policy is required if you want insurance that covers stolen vehicles. Comprehensive vehicle insurance is frequently bundled with collision and other types of coverage, but you can also purchase a standalone comprehensive policy that covers you if your car is broken into or stolen.

Other Types of Insurance May Help

Although comprehensive coverage generally covers vehicle theft, it only covers the vehicle itself and not any personal property left inside. You must file a claim with your homeowners or renters insurance provider for this.

Most homeowner's or renter's insurance policies cover theft of personal property, including items stolen from your car. Check the specific terms and conditions of your policy to understand what is and isn't covered. So, be prepared to file two insurance claims: one with your car insurance for the vehicle itself, and another with your homeowners or renters insurance for the personal property that was inside the vehicle.

You should be aware that some homeowner's insurance policies have a lower limit for property stolen while you are not at home.

What to Do If Your Car Is Stolen

If your car or truck is stolen, contact the police immediately and file a report. The police will require basic information such as the vehicle's make and model, plate number, and possibly the vehicle identification number. Then, check with your insurance provider to see if you're covered. If you believe personal items were left in the car, contact your homeowners or renters insurance provider.

Do these things as soon as possible. Your claim will be processed faster, and the chances of finding your car will increase.

If your claim is approved, many insurance companies will pay you based on the actual cash value (ACV) of your vehicle. The total amount will also be determined by the terms of your policy. The value of the vehicle is determined by an insurance adjuster based on its age, make, model, and normal wear and tear. This includes upgrades like premium seats or wheels, but not accessories like a premium stereo or music player that you can remove. When the adjuster has determined the value of the vehicle, you will typically receive a check for that amount less any deductible on your policy.

The Bottom Line

With so many different car insurance policies available, keep in mind that only some will cover you if your car is broken into or stolen. You will not be adequately protected if you only have liability or collision insurance. Only comprehensive insurance protects your car if it is stolen, and it excludes personal property left inside. You must file a claim with the issuer of your homeowners or renters policy for this. File a police report and insurance claim as soon as possible to expedite the process and allow you to replace your vehicle as soon as possible.