Car theft can be devastating. Luckily, comprehensive coverage on your auto policy typically protects against it.
Comprehensive auto policies cover non-collision damages and losses to your vehicle from events other than collision, such as hitting an animal or rolling off of a cliff. They also cover stolen parts (excluding premium stereos or portable GPS devices); commonly stolen components include wheels and tires, truck tailgates and catalytic converters.
It pays to replace your vehicle
Comprehensive car insurance provides peace of mind by covering stolen vehicle replacement. However, this form of coverage typically only pays out its actual cash value (ACV), which takes into account factors like condition and age when calculating this figure. If you need help estimating its worth you can consult an online resource such as Kelley Blue Book to help.
Comprehensive auto insurance covers theft of your vehicle as well as vandalism, fires, floods, hailstorms, falling objects and animal collisions; it does not cover stolen personal property found inside. In these instances homeowners or renters policies would provide more comprehensive protection.
Liability insurance, though required in many states, doesn’t cover theft of your car; rather, it covers damage caused by accidents you cause to other drivers’ vehicles and passengers. Therefore, to protect both yourself and other drivers’ passengers more adequately comprehensive coverage should be added as an optional add-on policy.
Look for a comprehensive car insurance policy with new-car replacement coverage as an add-on feature, even though it costs more in premiums. This feature will increase your total loss settlement amount so that there will be enough money available to buy another vehicle of similar make and model if totaled; please note that not all insurers provide this option.
If your vehicle is found stolen, and is found later by its insurance provider, then they must investigate and rule out fraud before fulfilling your claims. Most providers typically impose an eight week waiting period before fulfilling them.
Thieves often use flatbed trucks and cranes to take cars from parking lots, fortunately most comprehensive policies provide theft protection against this crime. Furthermore, comprehensive auto insurance will often cover rental car costs while your own is repaired or replaced; some companies even provide additional car rental insurance as an add-on.
It pays to repair your vehicle
Many drivers choose comprehensive coverage as part of their auto insurance policies, which helps pay for stolen vehicles if they’re never recovered. Your insurer typically pays the actual cash value at time of theft minus your deductible amount. Though comprehensive doesn’t cover every type of damage to your car, it provides peace of mind against theft.
Comprehensive insurance provides protection from more than just stolen vehicle coverage; it can also cover damage sustained while your car is missing, such as hail or windshield breakage. Deductibles for these claims vary, so always refer back to your policy before filing one. It is also worth remembering that money received from insurance may not cover outstanding loans or lease agreements in full.
Though no state requires comprehensive coverage, lenders and leasing companies often insist upon it when taking out loans or leasing cars. Comprehensive coverage is an affordable add-on that will protect the vehicle you’ve invested in while usually only increasing car insurance premiums by a modest amount each month.
Keep in mind that comprehensive insurance won’t cover nonpermanent parts and equipment that is easily removable and resold, such as premium stereos, portable GPS devices and third-row SUV seats. Thieves tend to target these products; however if you have homeowners or renters insurance they could potentially cover these items.
If your stolen car is later recovered, comprehensive coverage should cover most repairs minus your deductible. However, if an insurer determines it has been diminished or damaged while stored, additional costs may apply – especially if modified or customized in any way. It’s a good idea to ask about an endorsement that covers this expense as this option may not be included with all comprehensive policies; make sure to shop around to find the best price!
It pays to replace your personal belongings
Comprehensive insurance may cover stolen personal property from your vehicle if the appropriate coverage has been added to your policy. This usually covers nonpermanent additions like an MP3 player plugged into an auxiliary port; however, it won’t cover expensive items like laptop computers or cameras which will need homeowners or renters insurance in order to be replaced.
Thieves may take parts from your car and abandon it somewhere else, with stereos, GPS devices and third-row SUV seats being particularly vulnerable. Your comprehensive policy should cover these permanent features of your vehicle – premium stereos, rims & tires, catalytic converters and tailgates should all fall within its coverage as well.
If your vehicle is totaled after being stolen, your insurer will calculate its actual cash value (ACV). They then pay out this sum minus any deductible amounts. To maximize your chances of receiving an accurate ACV figure for it, research its worth using resources such as Kelley Blue Book and Edmunds. Also take into account any damage or wear and tear sustained during its absence as this will alter how much they offer you in terms of compensation from insurers.
Comprehensive insurance can also reimburse the cost of renting a car while waiting for yours to be repaired or replaced, which can be especially helpful if your area lacks public transportation or you can’t afford another vehicle right away. Please keep in mind, though, that most comprehensive policies have a limited rental-car reimbursement allowance; how long you are allowed to rent will depend on their policy terms.
Comprehensive auto coverage can be an essential addition to your policy, providing protection from some of the more serious driving risks. When considering comprehensive coverage as a possible part of your policy, speak to an independent agent about it to make sure it’s the best solution for you.
It pays to rent a car
Car insurance with comprehensive coverage reimburses you up to an agreed limit for any loss due to theft of your vehicle, up to its actual cash value minus your deductible. In many instances, comprehensive policies also cover some rental car costs while waiting for your stolen car to be found and recovered; but this depends on its specific terms.
Some insurers provide “rental coverage”, which pays a limited daily rental car cost while you await its return from theft. This could be an excellent solution if you do not possess another vehicle, reside in an area with high theft rates or would have difficulty moving around freely without one.
Comprehensive insurance may cover theft of parts and equipment permanently attached to your car, such as tires or the catalytic converter. This could be beneficial if your vehicle features expensive accessories like aftermarket rims, stereo systems or custom paint; however items such as dashcams or tablets typically are not covered; in this instance it would be prudent to file a claim with either homeowners or renters insurance policies instead.
No one should buy comprehensive car insurance without first considering their specific needs and circumstances, although liability and collision policies are required by state laws; comprehensive is sometimes an ideal solution for those wanting peace of mind that their car will be covered should anything arise that goes outside of their control, like accidents or severe weather damage.
If you finance or lease your vehicle, its lender or leasing company is likely to require comprehensive car insurance as part of the terms. They’re responsible for any balance left on your loan or lease contract and they want to make sure you are covered if theft occurs or something catastrophic occurs to your car.
