Does Auto Insurance Cover Theft?

Does Auto Insurance Cover Theft?

Auto insurance helps to cover your vehicle from various types of damages, including theft. However, certain types of auto insurance cover theft differently. For example, comprehensive car insurance does not cover personal belongings in the car if they get stolen but covers other aspects. In this article, we’ll explain how auto insurance policies provide coverage for theft.

How Auto Insurance Covers Theft

Comprehensive Auto Insurance

Suppose you have a comprehensive auto insurance plan. In that case, you will get coverage for theft and damages that are not a result of a collision. Comprehensive car insurance covers theft, water damage, vandalism, falling objects, etc. If your car gets stolen, comprehensive auto insurance will reimburse the value of the car. Comprehensive insurance also covers stolen car parts and damaged car parts as a result of break-ins or vandalism. Comprehensive auto plans have a deductible and coverage limit.

The deductible refers to the amount the insured pays out of pocket for a covered claim. The coverage limit is the maximum amount the insurer will pay for a covered claim. It is important to note that comprehensive auto insurance does not cover rental vehicles. To receive coverage for theft on a rental car, you will need to purchase rental reimbursement coverage.

Comprehensive auto insurance also helps to cover the replacement of car parts if they get stolen, up to the coverage limit apart from the deductible. Generally, comprehensive auto insurance does not cover custom parts or additional equipment you added to your vehicle yourself. Also, it does not cover your personal items that are stolen in your vehicle. You can get coverage for your personal items through other policies such as personal property coverage.

Liability Insurance

Liability insurance does not cover stolen vehicles or stolen belongings. Liability insurance only protects the insured if they cause property damage or bodily injury because of an accident.

What to Do After a Car Theft

If your vehicle gets stolen, there are some steps you should take. It is better to act sooner and not get caught up with worry. The first thing you should do if your vehicle gets stolen is to call the police. File a formal report and provide information such as the model, color, VIN number, distinguishing features, and other required details. You will also provide information such as where you parked the car and when it was stolen. This will enable the police to place a lookout for your vehicle.

After filing a police report, the next step is to contact your insurer. You will need to file a claim and provide similar information to what you provided to law enforcement. Your insurer will review your claim and start the process. If your claim is approved, you will receive a check for the replacement costs minus the deductible.

You do not have to cover the costs if your car or car parts get stolen. 

Learn More About Auto Insurance Today

At Remco Insurance Services, we understand what it means to have the proper coverage. If you’re interested in switching auto insurance policies or are curious about what your options are, give us a call today. We can help you compare quotes and coverage!