Will car insurance cover stolen items? Most of the time your auto insurance won’t cover you for the value of your car if it’s stolen.
However, if you have comprehensive coverage, you’ll pay for the actual theft of your car and, in some cases, the theft of certain parts of your car.
Some insurance companies don’t even offer coverage for personal property theft. Instead, they’ll charge you an extra fee to cover the value of your personal belongings.
Have you ever thought about whether or not your car insurance will cover theft of personal property?
Your auto insurance typically won’t cover you for the cost of replacing your car’s contents in the event of a theft.
Comprehensive coverage, on the other hand, will cover you for the loss of the vehicle and, in some cases, for the loss of certain parts.
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Some insurance companies, however, do offer coverage for personal property theft for an extra fee.
Homeowner’s or Renter’s Insurance: Looking for Theft Coverage
Most auto policies don’t cover personal property theft. If you have a homeowner’s or renter’s insurance policy, you may be able to file a claim for lost items.
According to Policy Genius, most homeowners’ or renters’ insurance policies cover property stolen from both your home and your vehicle.
If the stolen items include your wallet or purse with ID cards and/or debit/credit cards inside, you’ll need to make sure your accounts are secure and you’re protected from identity theft.
Get in touch with one of the big three credit bureaus (TransUnion, Experian, or Equifax) to get a fraud alert put on your account.
This means you’ll have to approve new credit accounts with your name, address, and Social Security number using this system.
You’ll also need to call your bank or credit card company and cancel your cards or order replacements. They’ll be able to prevent unauthorized transactions as soon as you notify them of the theft.
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Understanding Comprehensive Coverage
If you want to pay for vehicle theft with auto insurance, you need to have comprehensive coverage. Comprehensive coverage covers any non-collision loss or damage to your vehicle. This can include things like:
According to Allstate, you can claim a comprehensive policy for stolen vehicles, stolen vehicle parts, and damage to your car resulting from a burglary, including broken glass and damaged locks.
For example, thieves often steal a catalytic converter because they can sell it for the price of the metals it contains, such as palladium and platinum
If you don’t have comprehensive coverage and only rely on state minimum liability insurance, you won’t be able to get reimbursement for your stolen vehicle.
Most states only require you to have coverage for other people’s costs in the event of an auto accident
After you’ve been robbed of your vehicle, you’ll need to report the theft to your insurance company as soon as possible.
If you’ve got comprehensive coverage, your insurer will pay for the replacement of the stolen car based on the terms of your policy, as per Value Penguin.
Most insurance policies will pay for theft even if it’s your fault (for example, if you forgot your keys in your car and it got stolen).
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You’ll also need to file a police report if your car is stolen or if someone breaks into your car and steals property.
Make sure to call your local precinct and don’t move your car until an officer arrives to help you. It’s a good idea to have these items with you when you speak to the officer, according to Nerd Wallet:
- The vehicle’s make and model
- The list of items stolen
- Pictures of the damage (in case of a burglary)
- Your car insurance number
- Your vehicle registration number
- Your driver’s license number
It’s important to remember that you’re responsible for a deductible when filing a claim under your comprehensive policy.
This deductible is your deductible and is typically between $500 and $2000. If you file a comprehensive claim, your insurance company will deduct this deductible from your settlement.
Here’s an example:
If you own a $10k car with a $1k deductible, your car insurance company will pay you $9k if you file a theft claim.
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However, if you’re not sure about your car’s ACV, you can look it up on Edmunds or Kelley Blue Book, and you can also negotiate your vehicle’s payout value based on the information from those sources.
Typically, it takes at least a couple of weeks for a stolen vehicle claim to be settled through your comprehensive policy. An adjuster will be assigned to conduct an in-depth investigation.
Some insurers, according to auto insurance website The Zebra, wait up to eight weeks to settle a stolen vehicle claim.
If police recover your damaged vehicle before your claim is settled, contact your insurer immediately. The adjuster will inspect your vehicle for damage and pay for repairs or replacements under your comprehensive policy. Your policy may specify that the repairs include parts from your original equipment manufacturer (OE).
If an OEM notation is missing, the insurer may only pay for used or aftermarket parts.
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Once the claim is settled, the insurance company will assume responsibility for the stolen vehicle. If it is found, the vehicle will be considered salvaged and you may be allowed to buy it back if you wish.
If you’re financing your car, you might also want to consider gap insurance. With a comprehensive policy, you’re only responsible for your car’s actual cash value in the event of a theft.
With gap insurance, you’ll cover the cost of paying off the remaining balance on your loan if you have more than your vehicle’s worth. It’s an affordable option with most insurance companies.
Car insurance doesn’t cover the theft of your personal belongings, but you have options for stolen vehicles and certain stolen parts. An umbrella policy is available for certain after-market components, such as expensive sound systems or speakers.