Car Theft and Auto Insurance: Ensuring Your Vehicle and Belongings Are Covered
It's your worst nightmare. You walk into the parking lot after enjoying a night out but can't find your vehicle. After searching frantically through the entire parking lot, it's clear your car isn't there. You call the police and explain the situation. After filing a report, there's nothing you can do but wait. You're a victim of car theft — but will your insurance cover your loss? It's possible, but only if you have comprehensive coverage.
What type of auto insurance coverage is needed to protect against car theft?
There are three primary types of auto insurance: liability, comprehensive, and collision. Most states require drivers to carry minimum liability insurance, and you may add on comprehensive and collision insurance if your lender requires it or you want additional protection.
Liability insurance reimburses others for bodily injury and property damage arising from an at-fault accident you cause. If a state sets minimum liability coverage of 30/60/30, you must buy a policy with at least $30,000 in bodily injury insurance per person, $60,000 in bodily injury coverage per accident, and $30,000 in property damage insurance per accident.
Comprehensive coverage protects you and your vehicle from unforeseen damage that's out of your control. It may pay for damage caused by a severe storm, such as a tornado or hurricane, or from falling objects in an earthquake. Comprehensive auto insurance also provides car theft coverage. If someone steals your vehicle, your comprehensive insurance policy will reimburse you for the car's cash value, less your deductible.
Collision insurance pays for damage to your vehicle in a collision, provided you were behind the wheel during the accident. It also covers the cost of repairs. If the accident totals your vehicle, collision coverage will reimburse you for the car's cash value after you pay your deductible.
Comprehensive and collision insurance are optional if you own your vehicle outright. However, if you own your car under a loan or lease, your bank will likely require you to obtain both coverage types at an amount it specifies.
“ Comprehensive auto insurance also provides car theft coverage."
How do you file a claim if your car is stolen?
If your car appears to be missing, make sure it's actually been stolen. If you're in a parking lot, walk through it to see if you forgot where you parked. If it's missing from your home, ask family members if they borrowed it. If you can't locate it, contact your local police department immediately and report it as stolen. The sooner you let the police know, the quicker they can notify officers to be on the lookout for your vehicle.
The police will ask you for details about your car, including the Vehicle Identification Number (VIN), make and model, color, and any identifying details. They may also ask you for the contact details of anyone with access to the vehicle and any personal property in the car. Be sure to have the information ready when you contact them.
After filing a police report, request a copy and contact your auto insurance company to report the theft. If you have comprehensive coverage, your insurer will reimburse you for the vehicle's cash value once you pay the deductible. The auto theft insurance claims process can take some time, and there's always the chance you'll recover your vehicle. If you or the police locate your car, notify your insurance company immediately so it can stop the claims process.
If you recover the vehicle but it's damaged, your insurer should pay for any repairs under your comprehensive policy. However, you'll receive a check for its cash value if it's deemed totaled. Comprehensive insurance doesn't cover stolen car belongings, though your homeowner's or rental insurance policy may.
What should you do immediately after you discover your car has been stolen?
The first thing you should do after realizing your car is missing is to take a deep breath and verify that it's gone. Make sure it isn't a case of forgetting where you parked or someone borrowing your vehicle.
If you parked illegally, a towing company may have towed away your car, so you'll need to contact the tow yard to find its location and retrieve it. Another reason for a missing vehicle is repossession, which occurs if you're late on your payments.
If you're sure someone stole the car, call the police immediately. Be prepared to provide identifying information about the car and where it went missing. If there's anything that can help distinguish your car, such as a bumper sticker or prior damage, let the police know. That can make it easier for them to identify your vehicle.
You'll also want to file a claim with your insurance company. Your insurer may ask for a copy of the police report before they start the claims process.
How can you maximize insurance protection for belongings inside your stolen vehicle?
Comprehensive insurance doesn't cover your personal belongings in a stolen vehicle, such as your purse, wallet, laptop, or clothing. However, your homeowner's or rental insurance policy may reimburse you for the value of those items. If you have a homeowner's or rental insurance policy, file a claim for your lost items immediately. You should include a copy of the police report with your claim.
If you don't have a renter's or homeowner's insurance policy, you may not be able to recover the value of your stolen belongings. You'll need to see if the police can recover your vehicle and if the items are still inside.
Purchasing renter's and homeowner's insurance can give you peace of mind if someone steals your personal belongings from your vehicle. Most policies cover items even if they're not at your house when they go missing. If you file a claim against your policy, the insurer will reimburse you for the items up to your coverage limits after you pay a deductible.
If your vehicle is under a loan or lease, purchasing gap insurance is another way you can reduce your risk. Gap coverage pays the difference between the car's cash value and the remaining loan balance, so you're not stuck paying for a stolen car.
What preventive measures can reduce the risk of your car being stolen or items stolen from your vehicle?
Use these insurance tips to help prevent vehicle theft.
Start by always locking your vehicle whenever you park it. If possible, park your vehicle in a secure garage rather than in your driveway or on the street. The harder it is to break into your car, the less likely someone will steal it.
Many vehicles come with car alarms, which go off whenever someone attempts to break into your car. If your vehicle has an alarm, set it whenever you park it, and know what it sounds like so you can recognize it when it goes off.
Consider purchasing an anti-theft device, such as a steering wheel or gearshift column lock. These devices make stealing your stolen vehicle much harder for would-be thieves.
Newer cars often come with vehicle tracking systems, which can help you locate a stolen vehicle. The tracking system can help you identify where your vehicle is using a designated app. If your car doesn't have a vehicle tracking system, you can purchase one and install it.
Anti-theft devices may be an upfront expense, but they can deter thieves. Some insurers may offer a discount on insurance premiums for having anti-theft devices on your vehicle.