Wondering if your car insurance will cover you in the event of a theft? Car theft is a stressful experience, and understanding whether your insurance will protect you can offer some peace of mind.
Usually, car insurance coverage for theft depends on the type of policy you have. Comprehensive coverage, for example, is designed to protect against theft, among other non-collision-related incidents. But what does this coverage include, and are there any limitations? Let’s break down the details so you can ensure you’re fully protected.
What Is Car Insurance And How Does It Work?
Car insurance is a type of protection you buy for your car. It helps cover the cost of repairs or replacements if something happens to your car, like an accident, theft, or damage. You pay a premium, which is an amount you pay regularly (like monthly or yearly), to keep your insurance active.
When you have car insurance, you choose a policy that fits your needs. Different types of insurance cover different things. For example, basic insurance might only cover accidents, while comprehensive insurance covers accidents, theft, and more. If your car is damaged or stolen, you file a claim with your insurance company. They will assess the situation and help pay for the repairs or replacement, depending on what your policy covers.
Does Car Insurance Cover Theft?
Well, yes, it does, but only under the comprehensive coverage. If you have this coverage included in your insurance policy, your insurance would then help in paying during the theft incident. But note that you might still be required to pay a deductible. For instance, if your deductible is $500 and the repair costs $1,000, you pay $500, and the insurance covers the rest.
In the meantime, here are some other things your comprehensive insurance can pay for:
- Damages caused to your vehicle during the theft attempt
- Stolen items like tires, converters, batteries, wheels, and other commonly stolen items.
- Environmental damage caused by vandalism, fire, floods, fallen trees, hail, or other natural events.
Also, it covers damage to your vehicle if it is stolen and later recovered.
What Is Comprehensive Car Insurance?
Comprehensive car insurance is a type of coverage in your policy that helps pay for your car if it gets stolen or if other non-collision incidents occur. However, comprehensive coverage is not mandatory. If you only have the state-required coverage, you won’t be protected against these types of events.
Does Comprehensive Car Insurance Cover Theft Of Personal Belongings?
The answer to this is no. Comprehensive car insurance does not cover the theft of personal belongings. So, if you lose your personal belongings like your cell phones, tools, and computers from your car, your comprehensive insurance doesn’t cover for it.
It also doesn’t cover for Aftermarket or custom parts. As it only covers your car and its standard components, that is, the factory-installed sound system, wheels, tires, and catalytic converters.
Your home insurance might help with that. All you just need to do is file a claim for stolen items. But make sure there’s coverage for that in your policy.
How Car Insurance Companies Manage Theft Claims
Due to the frequency of car theft fraud, many car insurance companies conduct their own investigations when you report a stolen vehicle. During this investigation, the insurer’s team will review your personal finances and insurance history, often using AI and credit checks.
However, if no issues are found, the insurer will start processing your claim. Your final payout will be determined by the assessed value of your vehicle minus your comprehensive coverage deductible.
In some cases, the insurance company may delay the final reimbursement for up to 30 days to see if the police recover your vehicle during that time.
What To Do If Your Car Is Stolen
If you’re a victim of car theft, fret not; there’s a way to go about it, and there’s a chance you can recover your car. When you find out your car is no longer where you parked it and you’ve confirmed that it was stolen, here’s what you should do:
File A Police Report
Most insurance companies require you to file a police report before you can submit a claim. Also, the sooner you report the theft, the higher your chances of recovering your vehicle.
When filing the report, you’ll need to provide details such as:
- The make, model, and color of your vehicle
- The license plate number and Vehicle Identification Number (VIN)
- Any GPS or Bluetooth devices in the car, as well as distinctive features like bumper stickers or dents
The police may also ask for:
- The time and place where they stole the vehicle.
- Evidence of theft, such as broken glass.
- A list of everyone who has access to the car.
- The location of all car keys, including spares.
- A description of any other items taken with the vehicle.
When talking to the police, be as thorough and specific as possible. The details you provide could be useful in helping to recover your vehicle.
File An Insurance Claim
Afterward, you’ll need to file a claim with your auto insurance company. Having the police report ready will simplify this step, as your insurer will require much of the same information.
Your insurance company may also request:
- A detailed description of your vehicle, including any upgrades
- Contact information for your lender, if applicable
- The vehicle’s title
- The police report number
- Your policy number
Keep in mind that it could take up to a month to receive your compensation. During this time, your insurer will carry out an investigation and wait to see if the authorities recover your vehicle.
After filing your police report and insurance claim, stay available for follow-up questions from the police or your insurer. Responding quickly will help keep things moving smoothly.