Many drivers possess vehicles fitted with expensive personal items like premium stereo systems and GPS navigation devices.
Typically, an auto policy does not cover items stolen from a vehicle; however, they may be covered under homeowner or renter insurance with lower deductibles.
Comprehensive Coverage
Most states mandate you carry liability insurance, which pays for other parties’ repairs after you cause an accident. For other causes of vehicle damage – theft in particular – such as comprehensive coverage is necessary to repair or replace it if stolen, vandalized, hit by animals or damaged by severe weather such as hail.
Comprehensive insurance costs depend on both your car’s value and your deductible selection, though additional options such as custom parts and equipment coverage could help cover aftermarket purchases in case they are lost, stolen or damaged. Before undertaking this option, make sure that the company offers clear documentation requirements as proof of purchase.
Typically speaking, most auto policies don’t cover personal property stored inside your vehicle; however, homeowners or renters insurance that includes “off-premises” personal property coverage could help cover losses of this nature. Without such coverage in place, most home or renter’s policies typically offer coverage up to their respective deductible levels for valuables that might have been left in your vehicle when lost or stolen.
If your car has been stolen and you don’t know what steps to take next, contact the police and file a report. When filing with them, be prepared to provide the name and description of those involved as well as other pertinent details such as items taken. Afterward, file a claim with your car insurer.
Be mindful that comprehensive insurance only reimburses up to your vehicle’s actual cash value (taking depreciation into account), leaving a large loan balance should it get stolen and not recovered. Gap insurance provides protection in this instance by paying off the difference between loan amount and actual cash value of vehicle at time of theft.
Overall, ditching comprehensive insurance could make sense if your car isn’t worth much; but before making this decision, be sure to carefully assess its worth against possible rate increases, out-of-pocket expenses and the stress caused by being stolen.
Collision Coverage
Liability insurance provides basic car coverage, providing bodily injury and property damage to others in an at-fault accident, but does not protect against theft of your own car or personal items. For extra security, comprehensive and collision policies offer more comprehensive protection – providing repairs due to an auto collision regardless of who caused it.
Most car insurance providers provide a list of covered damages and exclusions on their policies, so it’s important that you carefully read it so you understand what coverage applies and doesn’t. Your insurer should inform you about their deductible amount, as this amount must be paid out-of-pocket before your claim can be covered by their company. As part of your policy, many car insurers impose a minimum value requirement that dictates how much of an insurer payout for stolen cars; often this amount falls short of its actual cash value which factors in depreciation over time. When this happens, gap insurance could provide coverage between this difference and what remains due on your loan or lease contract.
Although car insurance doesn’t typically cover personal items stolen from your vehicle, a separate policy might. Homeowners, condo and renters policies usually will cover items taken either from within your home or from within your vehicle depending on its exact terms and conditions. When filing two separate insurance claims if your car gets stolen – one for the stolen vehicle itself and another one to cover any items taken from inside it – is also important.
Understanding your car insurance options is essential to selecting the appropriate coverage that meets both your needs and budget. When discussing these details with an experienced agent, be sure to also discuss any additional coverage such as comprehensive or collision policies that might benefit from being added onto the policy.
Uninsured Motorist Coverage
Uninsured Motorist (UM) coverage provides protection from injuries caused by drivers without car insurance, and is required in many states as an add-on option to policies in others. Sometimes called uninsured motorist bodily injury (UMBI), this form of protection typically exceeds your liability limits and must meet them as well.
If the at-fault driver lacks insurance, or has inadequate coverage, Uninsured Motorist Benefit Insurance (UMBI) will cover property damage and medical expenses up to your policy limits as well as lost wages associated with an uninsured accident.
Some UMBI policies offer coverage for stolen personal items from your car as well as the costs of towing and roadside assistance, with rates and coverage amounts depending on your state and liability limits. Additional accidental death and health coverage as well as coverage for rented cars are also available at an extra cost.
Personal Property Coverage
Liability coverage offers both motorists and their car owners some form of protection after theft; it will pay to repair or replace stolen cars; but this type of policy won’t reimburse your personal belongings that were taken. To add comprehensive coverage as additional safeguard, they’re recommended.
After being the victim of theft, you can expect your insurance company to reimburse the value of your property according to either actual cash value (ACV) or replacement cost value (RCV), with ACV taking depreciation into account while RCV does not.
To determine how much coverage you require, first create a comprehensive inventory list of all the lost or damaged items with their estimated values, along with any supporting documentation such as receipts or documents from sales transactions. When complete, compare this sum against your personal property insurance limits and any applicable deductibles; if close or above they totals, consider purchasing separate policies to provide added coverage.
Comprehensive insurance can also assist in replacing stolen parts and equipment, such as new wheels or an aftermarket stereo system, but typically does not cover permanent modifications such as custom paint jobs or permanent modifications to a vehicle.
Some insurers provide scheduled personal property coverage as an add-on policy, providing coverage for expensive items like cameras or jewelry. This coverage often serves as a supplement to homeowners or renters policies and usually has higher coverage limits than standard auto policies.
Prior to making a decision about the type of insurance coverage you require, consult your agent or insurer and inquire as to any theft-prevention measures you can implement such as installing an anti-theft device or parking in a secured garage. These strategies could reduce the chances of your property being stolen while saving money on premiums.