Does comprehensive insurance cover theft?

Car insurance covers auto theft and vandalism for drivers with comprehensive coverage. Comprehensive coverage is optional and can help replace your car if it’s stolen, replace certain parts of your car that are stolen, or repair damage to your car resulting from theft or vandalism. Comprehensive coverage won’t cover theft of your personal belongings, like your phone, laptop, or other valuables. Those items should be listed on your homeowner’s or renter’s insurance policy, even if you often leave them in your car.… read full answer

Normal liability car insurance won’t cover theft because it protects the other driver from bodily injury and property damage resulting from an accident you cause.

What Insurance Covers If Your Car Is Stolen

The coverage limit for claims related to theft is typically your car’s depreciated value, or actual cash value (ACV). Your coverage limit is the maximum amount your insurer will pay for a claim. So, if someone steals your car, the insurance company will pay the actual cash value of the vehicle, minus your deductible. The ACV is the car’s market value based on pre-loss condition, age, options, mileage, etc.

If you are financing your vehicle, the amount insurance pays may not be enough to pay off your loan or lease. If you owe more than your car is worth, you should consider gap insurance, which helps cover the difference between your car’s actual value and the balance owed.

You should also keep in mind that comprehensive coverage won’t pay for a rental vehicle as part of your stolen car claim. You’d need rental reimbursement coverage on your policy to help pay for transportation costs related to your car being stolen.

What To Do When Your Car Is Stolen

If your car is stolen, file a police report as soon as possible—ideally within 24 hours. Not only will this improve your chances of recovering the car, but you’ll also need a police report to file a claim with your insurance provider. After you’ve filed a report, you should contact your insurer to start the claims process.

No, car insurance does not cover theft of personal items that are left in your car. Property like your phone, laptop, and other valuables that might be stolen from your vehicle should be listed on your homeowner’s or renter’s insurance policy because they will not be covered by your car insurance.… read full answer

If your vehicle or any of its standard parts are stolen or vandalized, comprehensive car insurance coverage will help pay for the damage to your car and can even replace it in a total-loss situation. Comprehensive insurance only covers permanent, pre-installed features of the car, though—not personal items that may be destroyed or stolen from inside the car.

For example, let’s say someone breaks a window to get into your car, breaks open the lock to your glovebox, and steals your smartphone from inside. Comprehensive coverage will pay for your glass claim and any repairs to the car’s interior, like fixing the broken lock and any other damage to the glovebox. But you must have had your phone insured on your homeowner’s policy and file a claim there to recover the cost of replacing the stolen phone.

Remember, comprehensive car insurance usually has a deductible, so you will likely still have to pay some money out of pocket. If you have liability-only coverage, your policy will not cover theft or vandalism at all.

Comprehensive insurance is worth it if the premium is a small percentage of the car’s value. Comprehensive insurance might also be worth it if the policyholder cannot afford to replace the vehicle without comprehensive coverage, or if the car is driven or parked in a particularly risky area.

Although comprehensive insurance is not mandatory in any state, dealerships and lenders frequently require comprehensive insurance, along with … read full answercollision coverage, on leased or financed cars. In that case, comprehensive insurance is definitely worth it, because failing to meet the lender’s or lessor’s requirements could result in expensive force-placed insurance or even repossession.

Factors to Consider When Deciding If Comprehensive Insurance Is Worth It

• Your car’s age, mileage, and value.
• The cost of comprehensive insurance premiums.
• The risk of theft, vandalism, and natural disasters in your area.
• Your ability to pay for repairs or a replacement vehicle out of pocket.

An old rule of thumb recommended dropping comprehensive coverage when a car was five to six years old or had 100,000 miles. But this rule is now outdated, since newer cars have increased longevity alongside higher repair costs. Now, the standard rule is that comprehensive and collision coverage are both worth buying if the combined premium is less than 10% of the car’s value, minus the deductible.

Cost is only one factor, however, so you should also consider how likely you are to file a claim, as well as what would happen to you financially if your car was stolen or destroyed by something other than an accident and you didn’t have coverage. For instance, if theft, animal collisions, or natural disasters are particularly common in your area, you are especially likely to need comprehensive insurance. Similarly, even if your comprehensive premium is 15% of your car’s value, for example, comprehensive insurance might still be worth it if you rely on the car and can’t afford to replace it yourself.