Does Car Insurance Cover Theft?

Imagine walking to your car after a long day at work and discovering that your car isn’t there. Or, finding your vehicle, but it’s got a broken window and all of your belongings are missing. These are exactly the type of situations where you want to have insurance on your side — and we’ve got you covered! The key is knowing what type of insurance you need and how it will help you.


In the above scenario there are two different types of theft that happen — and each one would be covered by a different type of insurance. If you have comprehensive car insurance, then you’re covered if a thief takes off with your vehicle. Your car policy will also cover up to $200 in personal property. If you have more valuable items in your vehicle, your home owners or renters insurance will step in after the deductible. So is theft covered? You bet — but different types of theft need different insurance, and it won’t always be covered by your auto insurance.

If you’re wondering about the broken window in the first example, or any vandalism for that matter — we’ve also got you covered. Your comprehensive insurance steps in to help you pay any out-of-pocket expenses that may arise from vandalism.

Because a car theft or theft of items in a car can be complex and involve different types of insurance, it’s a great idea to contact the police and file a report, take lots of pictures, make note of anything that was stolen and all damage done to the vehicle. And finally, call your agent to see if they have any advice for you while you’re on the scene.

What Theft Does Comprehensive Insurance Cover?

If you’re wondering specifically what types of theft your auto insurance covers, then we should explore comprehensive auto insurance more thoroughly. The following chart is an easy way to do just that!

Your car is stolen

Yes

Your hubcaps are stolen

Yes

Your locks are wrecked in a failed theft

Yes

Your tires are stolen

Yes

Your vehicle is vandalized

Yes

Windows are broken

Yes

It’s important to note that comprehensive coverage is optional. So to get the coverage, you’ll need to add it to your policy.

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Humours about insurance fallacies

THE MEANING OF INSURANCE, BY AMBROSE BIERCE
INSURANCE, n. —An ingenious modern game of chance in which the player is permitted to enjoy the comfortable conviction that he is beating the man who keeps the table.

INSURANCE AGENT: My dear sir, that is a fine house — pray let me insure it.

HOUSE OWNER: With pleasure. Please make the annual premium so low that by the time when, according to the tables of your actuary, it will probably be destroyed by fire I will have paid you considerably less than the face of the policy.

INSURANCE AGENT: O dear, no — we could not afford to do that. We must fix the premium so that you will have paid more.

HOUSE OWNER: How, then, can I afford that?

INSURANCE AGENT: Why, your house may burn down at any time. There was Smith’s house, for example, which..

HOUSE OWNER: Spare me — there were Brown’s house, on the contrary, and Jones’s house, and Robinson’s house, which..

INSURANCE AGENT: Spare  me!

HOUSE OWNER: Let us understand each other. You want me to pay you money on the supposition that something will occur previously to the time set by yourself for its occurrence. In other words, you expect me to bet that my house will not last so long as you say that it will probably last.

INSURANCE AGENT: But if your house burns without insurance it will be a total loss.

HOUSE OWNER: Beg your pardon — by your own actuary’s tables I shall probably have saved, when it burns, all the premiums I would otherwise have paid to you — amounting to more than the face of the policy they would have bought. But suppose it to burn, uninsured, before the time upon which your figures are based. If I could not afford that, how could you if it were insured?

INSURANCE AGENT: O, we should make ourselves whole from our luckier ventures with other clients. Virtually, they pay your loss.

HOUSE OWNER: And virtually, then, don’t I help to pay their losses? Are not their houses as likely as mine to burn before they have paid you as much as you must pay them? The case stands this way: you expect to take more money from your clients than you pay to them, do you not?

INSURANCE AGENT: Certainly; if we did not..

HOUSE OWNER: I would not trust you with my money. Very well, then. If it is certain, with reference to the whole body of your clients, that they lose money on you it is probable, with reference to any one of them, that he will. It is these individual probabilities that make the aggregate certainty.

INSURANCE AGENT: I will not deny it — but look at the figures in this pamphlet.

HOUSE OWNER: Heaven forbid!

INSURANCE AGENT: You spoke of saving the premiums which you would otherwise pay to me. Will you not be more likely to squander them? We offer you an incentive to thrift.

HOUSE OWNER: The willingness of A to take care of B’s money is not peculiar to insurance, but as a charitable institution you command esteem. Deign to accept its expression from a Deserving Object.

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How to File a Car Insurance Claim

Getting into a car crash can be stressful and cause panic, even if you are protected with car insurance. Many folks have coverage, but don’t know what to do after an accident and don’t know how to file a car insurance claim. Keep calm and read on.

The car insurance claim process may seem daunting, but it is easier than it appears. Here is some information on what to do after a collision and how to file a claim with little hassle.

Things You Should Know Before the Worst Happens

No one plans to get into an accident, but it’s important to know what your policy covers in case you have file a car accident injury claim or any other insurance claim. Read through your policy so you always know where you stand. Know how much liability coverage you have and if you have collision and comprehensive coverage. If you notice any coverage you want that isn’t included in your plan, contact your insurance company to get it added to your policy. Reading over your policy can also inform you on how to best file an auto insurance claim with your insurer if you cannot proceed with traditional methods.

After the Accident

There is a whole guide on what to do after getting into an auto accident and there are some steps that take priority before filing accident claims. In short, pull over and park away from traffic if possible, check yourself and others involved in the accident for injuries, call the police to report the accident, and exchange insurance information with the people involved with the collision. Also, take pictures of the accident scene if you are able, write down license plate numbers of all vehicles involved in the collision, and write down the names and contact information of any witnesses.

Contact Your Insurance Company

Regardless of whoever caused the accident, you should call your insurance company as soon as possible to report the accident and file a claim. There should be a national or local phone number on your insurance card that you can call. When you speak with your insurance representative, ask if there are any particular forms you need to fill out or other information they need in order to swiftly process auto accident claims. Knowing what information you’ll need to obtain, usually items such as repair bills and the police report, will save you from making follow-up phone calls later on.

Take Your Car to a Repair Shop

While most state laws prohibit insurance companies from favoring specific auto body repair shops, many will provide you a list of local shops that are backed by repair and labor guarantees. Ultimately, you will be the one to choose which repair shop will fix your car. Make sure you know what your settlement amounts are before signing off on an estimate for repairs. You don’t want to end up paying beyond your policy’s limit if you can help it. Keep and make copies of all paperwork.

Cooperate With Your Insurer

Depending on the severity of the accident, you may be required to give your insurer additional information. They may call the repair shop to discuss the estimate for repairs or send an insurance adjuster to inspect the car. You may need to send copies of any legal papers or settlement offers you receive in relation to the accident. This can help your insurer defend you if you are sued as a result of the accident. It may seem like a hassle, but it is all in the interest of providing you the protection you purchased.

Keep Records of All Related Expenses

If you get a car estimate, hospital bill, a bill for a rental car, or any other expense related to your car accident, you need to be able to show proof of it to your insurance company. Keep any and all receipts or paperwork that indicates how much you paid or need to pay. You should also write down and report anything that could be considered lost wages. This can help you get reimbursed properly for these expenses.

Keep and Store Copies of Paperwork

This has been mentioned previously multiple times, but it bears repeating. It is important to keep any and all paperwork related to your accident in order for your insurance provider to refer to it when filing your car insurance claim. Keep the originals and make copies of any forms, bills, or other items related to your accident. You should also consider keeping your records organized in a file and kept in a safe place in your home.

If You’re Dissatisfied, Talk to Your Insurance Agent

If your claim has been processed and you aren’t satisfied with your payout, don’t be afraid to talk things over with your insurance provider. You can both review what was outlined in your policy agreement and see if there was any information that was overlooked or forgot to provide. It could also be an opportunity to update your insurance policy to include certain coverages that weren’t available to you in this instance.

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5 Insurance Mistakes to Avoid

 

Insurance is something we all need, yet most of us spend very little time actually thinking about it. This can lead to making a number of insurance mistakes that can result in having less insurance coverage than you really need. Here we’ll look at some of the most common mistakes people make when buying insurance, and how you can avoid making those mistakes yourself.

1. Selecting an insurance company by price alone

Clearly no one wants to pay more for an insurance policy than necessary. Yet more important than price is choosing an insurance company that will be there when you need it and is able to pay their claims. There are

independent rating companies where you can check the financial strength of the insurance companies you’re considering. It’s also important to talk to others about their experiences, especially when it comes to handling claims. You want a company that is easy to work with and is fair about paying claims.

2. Insuring your home for its market value

The value of a home can fluctuate, and sometimes people will reduce the amount that their homeowners insurance covers when the value of their home drops. This is a mistake – your home should be insured for the amount it would cost to rebuild, which is seldom equal to its market value.

3. Not having flood insurance

People who don’t live near a river or lake often believe that they don’t need flood insurance. If you do live in such areas, flood insurance is something you shouldn’t be without, but those in lower-risk areas should consider it as well. Of all flood claims that are paid in the U.S., 20% are not in high-risk areas.

4. Getting the minimum required auto liability coverage

Most states have a minimum requirement for car insurance liability coverage. However, that minimum might not be enough to cover the cost of damages in an accident. Anything beyond the limit of your automobile insurance policy becomes your responsibility, and this can be disastrous if you can’t afford that expense. You may need to sell something of value, or could end up filing bankruptcy. If your car is older and not worth a lot, it can make more sense to drop your comprehensive and collision coverage than to skimp on liability.

5. Neglecting renters insurance

Your landlord’s insurance isn’t going to cover your belongings. Chances are the things you own are worth more than you think. It’s smart to take a detailed inventory of your possessions to reasonably estimate their value, and to consider getting insurance to cover that value. You will probably find that it’s much more affordable than you think. If you purchase insurance for your rental, you’ll also be covered for liability, so for example if your apartment floods and damages your neighbor’s property, you’re covered.

Armed with these insurance tips, you’re in a good position to review your current coverage. If you find that you’ve made any of these common mistakes, talk to an insurance agent you trust to provide you with great insurance advice and get you the coverage you need.

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