Car theft has been on the rise in 2020 and this has caused a lot of people to become concerned that their vehicle will be targeted next. As a result, many vehicle owners are wondering if theft is covered by their auto insurance policy. Auto insurance can cover the costs associated with a stolen vehicle, however you have to have the right coverages in your policy. Theft is not considered a collision event, so it falls under comprehensive insurance. Comprehensive coverage is not always standard in auto policies, so it’s important that if you are concerned about auto theft, you speak to your insurance agent to get the right coverage.
What Is Comprehensive Insurance?
Comprehensive insurance is often referred to as “full coverage” insurance because it provides coverage beyond the standard liability protection. Comprehensive coverage was designed to pay for repair and replacement costs of your vehicle for non-collision incidents. So for example, if you experience hail damage or a tree falls on your vehicle during a storm, comprehensive insurance will cover the associated costs. In the case of automobile theft, comprehensive insurance will provide coverage.
Will Comprehensive Insurance Replace My Vehicle?
Oftentimes when a vehicle is stolen, it is recovered by law enforcement. Comprehensive typically covers any damage to the vehicle caused by the thieves while it was stolen. However, if your vehicle was stolen and not recovered, comprehensive can also cover the replacement value. Comprehensive insurance will cover up to the actual cash value (ACV) of the car, or how much the car would sell for on the market. This is also sometimes referred to as the “Blue Book Value” in reference to the Kelly Blue Book which tracks the market value of vehicles. Comprehensive coverage will pay to replace your stolen car but you have to first meet your deductible and ensure that your policy you purchase has coverage limits that meet the ACV.
Will Comprehensive Insurance Cover A Rental Car Until My Car Is Recovered?
Comprehensive insurance is not designed to pay for a rental car, just to pay for non-collision damages. So if you would require a rental car if your car is stolen or even damaged in a collision, you will need to purchase rental coverage. Rental coverages are sometimes included in the auto insurance policy, but that is not always standard. The best way to ensure that you will have rental coverage is to speak with your agent and tell them it is a coverage you will need.
If you are concerned about the rise of auto theft, take the first step to protect yourself and talk to your insurance agent. At Panorama, we work with a variety of insurance providers. We’ll review your concerns and needs and help put together a policy that includes all the coverages and the right limits to keep you protected. Since we work with a variety of providers, we can also find a policy that meets these needs and your budget. Give us a call today and we’ll help you find the right auto insurance policy.