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Theft coverage and auto insurance

Over 1 million cars are stolen every year. Before your car becomes one of them, make sure you have suitable insurance as well as having obtained the information you'll need to contact the police department for filing reports and for notifying your insurance company to begin filing the claim.

When you shop for the lowest auto insurance rates, make sure you choose theft coverage (along with uninsured motorist) since they are typically only costs several dollars per month.

Comprehensive Auto Insurance

You won't be covered under you car insurance policy for theft unless you have comprehensive auto insurance. That covers any damage to the vehicle including theft, vandalism, natural disasters, fire, etc. Comprehensive insurance is not required by law, but will be required by the finance or lease company if you make payments. Comprehensive insurance is required or at least recommended for people with newer more expensive cars.

Exemptions to theft coverage

You may not be covered by auto theft even if you carry comprehensive coverage on your auto insurance policy, if you do not take reasonable care to secure your car. If you loan your car to someone who steals it, you may not be covered. Your insurer may also deny your theft claim if you don't it to law enforcement right away.

Liability insurance

Liability insurance does not cover car theft and only protects against claims that your actions caused bodily harm or property damage. Liability insurance is important because it's the primary method people prove financial responsibility in case they are in an accident. But it will not cover your vehicle in case of theft.

Get replacement rental coverage

Many insurance companies wait 2-4 weeks to see if the stolen car will be recovered, before finishing your claim so you can buy another car, so you could end up paying a lot to rent a car in a month, if you don't have rental car replacement coverage. There may also be a waiting period before you're allowed to rent a car. Read your policy.

Vehicle Contents Riders

You can buy an additional rider for your car insurance policy to cover items stolen from inside your car. They are not covered, since they are not considered part of the vehicle. Your current insurer may not offer vehicle contents coverage. And if they do, they may have limits of $1,000 or $2,500 for contents. You may or may not be allowed to raise or lower this limit. Expensive items may require a special type of protection call scheduled personal property insurance.

Towing and roadside assistance

Towing and roadside assistance should only be a few dollars per month through your carrier. Or you can shop through an outside carrier like AAA or your car maker. Find out if your car is broken into and disabled, are you covered for a tow to any mechanic? Or only a dealer's service shop? Are both towing and labor costs included?

Permanent or Temporary Item Coverage?

If a theft insurance rider does provide for property loss coverage, it will only cover items fixed to the car like stereos. A driver can often get covered for upgrades, or other items fixed to the car that can be considered car parts, but not for non car items like laptops, cells or clothes.

Home or renters coverage?

If you check with your home or renters insurer, they may cover your personal belongings if you have contents coverage on that insurance policy. If your homeowners or renters policy presently does not cover items stolen from your car, you may be able to add the rider. Was the property stolen temporarily placed in the car from the home, then stolen from your locked car? It might be treated like an item stolen from within the home.

Anti Theft Devices

Manufacturer-installed anti theft devices can be disabled by experienced and car thieves. Yes including the low tech Club. However, aftermarket vehicle anti-theft systems are usually harder to defeat.

Summary: Once a year to make sure they will cover your needs if your vehicle is stolen or damaged in a crash. Some common sense will go a long way to protecting your deductible. Like securing your car (even in your own driveway), Park in well-lit areas, install anti-theft devices, and don't leave valuables within sight to attract thieves, like electronics, purses or wallets.

Once you car is stolen:

Call the police! Then call your car insurance company, they will probably give you a Vehicle Theft Questionnaire, requesting info on or copies of the following:

• Certificate of Title;
• Police report;
• Location of all keys to the vehicle before and after the theft;
• Names and contact info of anyone who had access to the vehicle;
• Vehicle description, mileage, options, service records, and upgrades;
• Receipts for any upgrades or maintenance;
• An inventory of all personal property stolen along with your car.
• Finance or lease company info with account numbers.

You'll also have to call the finance or leasing company and give them your adjusters info.

If your stolen car is recovered

Typically 90% of stolen cars are recovered within 72 hours of being stolen. If the insurance company determines your recovered stolen vehicle is worth fixing, they will begin repairs.

If the vehicle is greatly damaged, it will be considered a total loss, meaning it would cost insurance companies more to repair them than to sell for salvage. The insurance company will pay you the market value for your vehicle, which will no longer be Kelly Blue Book, but some proprietary software.

Your stolen car might be recovered, but not before you settle the total loss claim. In that case, your would sign over the title to the insurer, and they would send it to auction.

Summary: Shopping with different companies and getting quotes including: Car rental, comprehensive, towing, vehicle contents coverage in important. Multiple carriers are surely your number one method for getting better prices and getting the best theft coverage.

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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