What Does Car Insurance Cover in the Event of Theft?

Comprehensive coverage is the type of car insurance that will generally cover theft, as well as repair costs for theft damage. Liability insurance, however, may not provide coverage for theft, as it typically protects against bodily injury and property damage resulting from an accident. While car insurance does not cover the theft of personal items, it does have coverage options for stolen vehicles and some stolen parts. You can also purchase a general policy for some replacement parts, such as an expensive sound system or speakers.

If your car is stolen, your insurance company will pay for the replacement of your vehicle, but not for the personal items it contains. Comprehensive coverage is what the stolen vehicle pays for. To be able to use your auto insurance policy to cover the cost of vehicle theft, you must have comprehensive coverage. If your car was stolen with personal items in it, you would have to file two different claims: one through your car insurance and one through your homeowners insurance.

Remember that even with a policy that covers vehicle theft, the personal property of the stolen vehicle is not included. For example, if someone breaks a window to get into your car and steals your smartphone from inside the glove box, you would need to file a claim through your homeowners or renters insurance policy because it will not be covered by your car insurance. If your claim is approved, many insurance companies use the actual cash value (ACV) of your vehicle to determine your payment. Comprehensive insurance generally has a deductible, so you'll likely still have to pay some out-of-pocket money.

Your insurance company must be aware of everything in your vehicle, so if you added a stereo to your vehicle, you must have informed your agent of the update before the theft. Most homeowners or renters policies cover the theft of personal property, including items stolen from your car. If you have proof that you owned the items that were lost when your car was stolen, such as receipts, they should be covered. Rarely, some insurance companies offer personal property coverage for an additional fee, which would cover theft of personal items.