Does Car Insurance Cover Theft? Yes, if your policy includes comprehensive coverage, auto insurance can assist in paying for a stolen vehicle if you are unable to retrieve it. Depending on your policy, you may also be covered for custom components, paint, wheels, and other aftermarket accessories. Comprehensive coverage is optional; thus, you will not be insured if you only have state-mandated coverage.
You’ll need to read your policy’s terms and conditions to fully understand what’s covered and how much you might receive. Personal goods stolen from your car (cell phones, computers, tools, etc.) are not covered by auto insurance, but you may be insured by a home, renters, or condo policy. This article will discuss the question Does Car Insurance Cover Theft?
Does Car Insurance Cover Theft?
Comprehensive coverage is the only type of car insurance that includes theft of the actual vehicle. If you have this coverage on your policy, your insurance will assist in paying for the replacement of your vehicle. You will still be responsible for paying your deductible, though.
Comprehensive insurance can also help pay for:
- Damage to your vehicle if someone tries to steal it.
- Damage to your vehicle if it is stolen and then found.
- Commonly stolen items include catalytic converters, tires, wheels, batteries, and tailgates.
- Vandalism, fire, floods, fallen trees, hail, or other acts of nature can cause damage to the environment.
Does Comprehensive Insurance cover Theft of Personal Belongings?
No, comprehensive insurance does not cover the loss of personal goods or valuables left in a stolen vehicle. It only covers the automobile and its standard components, such as tires and wheels, catalytic converters, and factory-installed sound systems.
Comprehensive coverage does not pay for:
- Laptops, phones, cash, and jewelry were left in the vehicle. These products may be covered by your homeowners or renters insurance.
- Aftermarket or customized parts. Custom parts and equipment (CPE) coverage covers these items.
If your home or renter insurance includes personal property coverage, you can file a claim for stolen items under that policy.
Does Liability Insurance Cover a Stolen Car?
No. Liability insurance will protect you if you cause personal injury or property damage to another person, but it will not cover a stolen vehicle. Collision coverage will not protect you against theft either. Comprehensive coverage is the only type that will cover automobile theft or damage caused by a break-in.
How Car Insurers Handle Theft
Because auto theft fraud is frequent, most car insurance companies will perform an independent inquiry when you report a stolen vehicle. During this process, the insurer’s research team will examine your personal finances and insurance history using AI and credit checks.
If your insurer finds no red flags, they will begin processing your claim. It will calculate your ultimate payout based on the assessed worth of your vehicle minus your comprehensive coverage deductible. Your insurance may withhold your final reimbursement for up to 30 days to determine whether police can reclaim the vehicle by then.
How Does Insurance Cover a Stolen Car?
Here’s how insurance can cover cases involving automobile theft:
- If your vehicle is stolen and not recovered, your auto comprehensive coverage may pay you the actual cash value (ACV) minus your deductible.
- If a stolen vehicle is found, auto comprehensive coverage may cover any resultant damages, such as shattered windows and other vandalism, caused during the theft.
- Items taken from your vehicle: Items stolen from your vehicle, such as electronics, are not covered by auto insurance but may be covered by your property insurance policy.
Kindly read your policy’s terms and conditions to fully understand what’s covered and how much you might receive.
What to do if your Car is Stolen
If your car is taken, do not panic. Follow these steps to report the occurrence and make a claim with your insurer.
File a Police Report
Most insurance companies need you to submit a police report before you can register a claim. Furthermore, the sooner you make a complaint, the better your chances are of recovering your vehicle.
You will have to provide the following:
- Make, model, and color of the vehicle
- License plate number and vehicle identifying number (VIN).
- Check for GPS or Bluetooth gadgets in the car, as well as identifying marks like bumper stickers or dents.
The police may also require you to provide the following information:
- Where and when was the vehicle stolen?
- Evidence of theft, such as damaged glass.
- Everyone with access to the car.
- The location of all automobile keys, including spares.
- Anything else that thieves took with the automobile
When speaking with the police, make sure to be as complete and specific as possible. The information you submit could be vital to retrieving your vehicle.
File an Insurance Claim
Next, you’ll need to file a claim with your auto insurer. Having the police report on hand will make this stage easier, as your insurer will need much of the same information.
Your auto insurance company may also ask to see:
- A detailed description of your vehicle, including any upgrades.
- Contact information for your lending business, if relevant.
- The vehicle’s title
- Your police report number.
- Your policy number.
Remember that it may take up to a month to receive your reward. During this period, your insurance provider will conduct an investigation and wait to see if the authorities can locate your vehicle.
Be available for follow-up questions
After you’ve completed your police report and insurance claim, make sure you’re available to answer any follow-up inquiries from either party. They may have further questions or need to explain specific aspects. Responding swiftly to those inquiries will help keep the process going forward.