Does car insurance cover theft?

The first thing you want to check to make sure your vehicle is covered in the event of theft, is if your policy includes comprehensive insurance coverage.  If you have comprehensive coverage typically your car is covered in the event of theft. Comprehensive will also covers the replacement of stolen parts (only certain ones, please check with an agent for more information). What comprehensive does not cover is the contents of your vehicle. 

Please keep in mind, most insurance policies that are only covering the state minimum requirements usually will not include the reimbursement of a stolen car. Typically state insurance minimums will only cover the costs that you personally as the driver of the vehicle are responsible for. For example if you were at fault in an accident, the state minimum liability insurance only covers the medical costs & repair expenses caused to the other party. If you need insurance that will cover your vehicle in the event it is stolen, you will need to carry comprehensive car insurance coverage. 

Comprehensive insurance covers automobile damage that may be caused by non collision situations. Policies from various insurance companies will have different levels of insurance coverage. To truly know who has what or what company works best for your situation, it’s always best to speak to an agent. Give us a call and one of our wonderful agents will walk you through the different insurance companies to see what the best fit is for your lifestyle. When it comes to the cost of the coverage it will depend on the value of the vehicle and the amount of that value you would want replaced in the unfortunate event it is stolen. 

What is the insurance claims process for a stolen vehicle?

You’re going to want to prepare for delays. Comprehensive auto insurance coverage doesn’t automatically guarantee an expedited payout. There’s investigations that need to be performed by the insurance company. Along with that there’s usually a waiting period (Roughly 2 – 8 weeks). The insurance company wants to see if the vehicle is recovered before paying out the claim. 

Once the investigation concludes and the vehicle is not recovered. You would be looking at a ‘total loss claim’. The insurance company would then proceed to reimbursing you for the actual cash value of the vehicle. How much you paid for the car, reducing any applicable depreciation. From there you’d receive the payment for the actual cash value minus your insurance deductible. 

Will my car insurance cover the contents of my vehicle if it is stolen?

More than likely not. Comprehensive insurance coverage will cover damage to your vehicle in the event of a break in. It doesn’t cover the value of your personal belongings that were in your car when it was stolen. 

The easiest solution to insure your personal items is with your renters and homeowners insurance policies. Ask one of our agents about off premises insurance coverage. Homeowners and renters insurance will often allow you coverage even when you aren’t at home. You of course have to meet your deductible and the policy you have may decide coverage limits for certain items, for example your watch collection, jewelry or electronics.

My stolen automobile was recovered, what now? 

Statistics show that your vehicle has an 89.6% chance of being recovered if it is stolen. Of the 175,351 vehicles stolen statewide in 2017, 89.6 percent were successfully recovered, representing 157,183 recovered vehicles. – California Highway Patrol – 2017 California Vehicle Theft Facts.

My vehicle was recovered during the claims process, what should I do?

The first thing you should do is contact your insurance company right away. The insurance company will need to determine the damage. Following standard procedure for handling a comprehensive claim, which includes either reimbursing you for the expense of the repairs, or paying you out the actual cash value of the vehicle if it’s determined to be a total loss. Regardless of the direction, your deductible would still apply & be deducted from the payout.

What if my vehicle is recovered after the claims process, what should I do?

In this situation, it is also best to contact the insurance company immediately. If you have already been paid out for the vehicle the insurance company will consider the vehicle to be their property. You may have the option to buy the vehicle back. Of course if you haven’t already replaced it. Situations like this are handled on a case to case basis and vary between insurance companies. The best way to find out if this is an option, is to ask the insurance company.