Does Auto Insurance Cover Theft?


As a driver, the importance of auto insurance cannot be overstated. We rely on our cars for transportation throughout the day, whether we’re commuting to our jobs or running errands. Most of us spend a lot of time in our cars, and that time spent opens us up to the potential for accidents. Having auto insurance to protect yourself and others in the case of an accident is an obvious reason to carry insurance, but what happens if something else bad happens to your car. Although it’s a rare occurrence, the potential for vehicle theft is a very real threat. Will your auto insurance cover you when your car is stolen? Having a way to get around is crucial nowadays, and your car is a significant investment. This article will focus on the relationship between auto insurance and vehicle theft, and try to give you a sense of what you need to do to protect yourself and your car.

Auto Insurance and Vehicle Theft

Basic auto insurance plans will often not cover you in the case of a theft or vandalism, but many insurance agencies offer a plan called comprehensive coverage. Adding a comprehensive plan can give you the peace of mind that your insurance covers:

  • Damage not from collisions such as
  • Fire
  • Natural Disasters
  • Falling Objects
  • Vandalism
  • Theft
  • Glass Damage
  • Damage from hitting an animal

As you can see, comprehensive coverage has a lot of added benefits and can save you a lot of money or hassle if something catastrophic and unrelated to a car accident damages your vehicle.

While there’s no doubt that these comprehensive plans are more expensive than basic coverage, think of how expensive it would be to replace your vehicle in the event of a total loss. If your car is cheap, it may not be worth your money, but these days a lot of vehicles are a significant investment. Paying a little extra in coverage each month to ensure that you’re not in serious financial trouble if the unthinkable were to happen may be well worth it for mid-range to expensive cars.

What Won’t Auto Insurance Cover

The idea of comprehensive coverage is a bit of a misnomer. The word “comprehensive” gives the impression that everything related to car damage will be covered, but unfortunately that’s not true. While comprehensive coverage is no doubt a good investment, there are certain aspects related to theft or damage that these plans won’t cover.

Things like:

  • Collision (This should be covered by your regular insurance plan, as this add on coverage doesn’t address regular accidents).
  • Car Towing and Labor
  • Theft of personal items from your car
  • Rental Car Reimbursement

Keep these exclusions in mind when looking at comprehensive plans, and make sure that your package covers everything you’re looking for.

Auto insurance is a necessary expense, but what you get from it as a car owner can vary widely. Like anything in life, you get what you pay for. Basic plans that only cover collisions are required by law, but a more comprehensive plan can give you the peace of mind you need in case something catastrophic were to happen to your car.

Cars are valuable assets, and having one stolen isn’t your fault - you shouldn’t pay the price. Opt for theft coverage to get you back on the road in the case of a stolen vehicle.