Does Car Insurance Cover Auto Theft?

Auto theft is not just an occasional headline; it’s a frequent threat that can affect any vehicle owner. Transitioning from the shock of theft to practical concerns, one pivotal question arises: does your car insurance offer a safety net for such a loss? Let’s delve into the intricacies of insurance coverage to find clarity amidst this distressing scenario.

The type of insurance policy you hold is crucial; coverage for auto theft hinges on your selected plan. Merely possessing liability insurance, unfortunately, means you receive no relief for theft.

In contrast, comprehensive insurance offers protection for theft and other non-collision incidents like natural disasters, vandalism or fire. Comprehensive coverage is optional but highly recommended to safeguard your car against any unforeseen events.

Does Auto Insurance Pay For Any Personal Item Taken From the Car?

However, it’s important to understand that even with comprehensive car insurance, coverage typically does not extend to personal items stolen from your vehicle, such as cell phones, laptops, or wallets. In such instances, home or renters insurance policies might offer the necessary protection.

Therefore, if these personal belongings are taken during an auto theft, you may be required to file a separate claim through your homeowner’s or renter’s insurance policy to receive compensation for those losses.

Your Car Was Stolen, What Now?

Upon the unfortunate discovery that your car has been stolen, immediate action is essential. Firstly, promptly contact the police to file a report; this document is a critical first step and provides official evidence of the theft. Next, swiftly notify your insurance company; it’s vital to inform them of the incident as soon as possible.

As part of their process, insurance companies generally allow up to 30 days to pass, holding out hope that your vehicle may be recovered. If your car remains missing after this period, your insurer will typically proceed with compensating either you or your lien holder, in line with your policy terms.

What Happens if Your Car is Recovered?

If your stolen vehicle is fortuitously found before the insurance claim is resolved, the condition in which it is recovered significantly affects the ensuing steps. Typically, insurance adjusters will scrutinize the retrieved car to assess any sustained damage.

Should their evaluation conclude that the damages are severe enough to deem the car a total loss, the insurance company may decide to pay out the claim based on the car’s value prior to its theft.

Conversely, if the damages are assessed as minor, repairs will be authorized, with the caveat that you might be responsible for paying a deductible as per your policy agreement.

Some Cars Are at Higher Risk For Theft

Apart from the type of policy you hold, several factors also influence auto theft coverage. The make and model of your vehicle play a significant role in determining the extent of your insurance coverage. Some cars are more prone to theft than others, and high-end luxury vehicles often incur higher premiums due to their increased risk of being stolen.

Furthermore, high-performance cars that attract attention also rank high on thieves’ lists, leading to elevated insurance premiums.

Additionally, your location can also impact your coverage for auto theft. If you reside in an area with a high crime rate or have a history of car thefts in your neighborhood, you may be required to pay higher insurance.

Minimize the Risk of Theft

Despite the fear of auto theft, certain strategies can significantly decrease the risk. Firstly, parking your car in a garage, especially overnight, reduces theft chances. Additionally, investing in an alarm system can serve as a powerful deterrent. If parking on a street or in public parking, consider locking your steering wheel. Importantly, always keep valuables like purses, laptops, and luggage out of sight.

These simple actions can make your vehicle a less attractive target for thieves.

Consult Your Insurance Agent Before Buying Your Car

Before making a decision on your new or used car, reach out to your insurance agent or company for a quote. Surprisingly, your dream car might bring along hefty insurance costs, pressuring your budget. Fortunately, Bargain Insurance Connection stands ready to assist. We provide cost-effective auto insurance options across Missouri, Kansas, and Illinois. Secure a comprehensive insurance policy to ensure coverage in case of theft. Feel free to request a quote or give us a call at 816.453.7722.

Read More:

What Is Comprehensive Insurance?

Does Auto Insurance Cover Rental Cars?