Yes, comprehensive insurance covers theft. Comprehensive auto insurance coverage will pay to replace a stolen car, repair damage done by thieves, or replace stolen parts, though it will not cover personal possessions stolen from inside a vehicle. It usually won’t pay to repair or replace custom parts or other equipment added by the driver, either.
Comprehensive coverage, which pays for non-accident damage resulting from things like natural disasters and theft/vandalism, is limited to the actual cash value (ACV) of a vehicle, minus the policyholder’s deductible. Comprehensive deductibles often range from $500 to $1,500.
To receive a comprehensive insurance payout for theft, drivers should immediately file a police report and then include a copy when they file a claim with their insurance company.
Comprehensive insurance helps pay for the cost of repairs to your vehicle when it was damaged by something other than a collision, like vandalism or extreme weather events. Comprehensive car insurance is never required by state law, but it is usually needed for cars that are leased or financed.
You should consider buying comprehensive coverage if you cannot afford to pay out of pocket to repair or replace your car in a worst-case scenario. Comprehensive insurance is usually considered to be a good investment since it’s cheaper than other types of car insurance and covers events that are out of your control as a driver. A good rule of thumb is that if the cost of comprehensive insurance exceeds 10% of your vehicle’s value, you can consider dropping it.
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.
How Theft Is Covered by Car Insurance
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 comprehensiveinsurance 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.
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