September 23, 2022
  • September 23, 2022

Can the theft be covered by auto insurance?

By on September 2, 2022 0

Auto insurance is one of the major costs of owning a car. Although some drivers don’t like to pay for insurance, when something does happen car insurance can pay dividends. Most drivers can file an insurance claim in a car accident. However, many people will have their car stolen and may wonder if their auto insurance covers it as well. Here is an overview if car theft is covered by car insurance.

Car theft can be a terrible event for drivers

A man breaks into a parked car at night | Getty Images

There are many types of car theft. Some are more dangerous than others. This is especially true during an attempted carjacking, as thieves could potentially threaten the driver and passengers with any weapon. That being said, not all car thefts are so dramatic and scary. Often people just wake up to find their car stolen.

No matter how a car is stolen, it can always lead to many problems for others. Since American society depends on cars, many people need their cars to work. If their car is stolen, they may have limited options for getting to work, which can have additional impacts on their lives. Not only that, but many stolen cars are never found, so if there’s something special or sentimental about the car, it’s probably gone for good.

And unlike a car accident, the car owner may not immediately know what to do because there is no one to exchange insurance information with. The good news is that many car insurance policies will cover a stolen car.

Car insurance can cover car theft, but only if you have the right policy

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According Erie Insurance, car theft is considered a non-collision event. As such, policies such as collision coverage or third party liability coverage will not cover car theft, but a comprehensive policy will. That said, full coverage isn’t necessary for everyone. For people who fully own their car, comprehensive coverage is usually an optional policy that some people opt out of in order to save costs.

However, people paying off their auto loan may have been required by their lender to obtain full coverage. If this policy covers your car and is stolen, it will treat your car as a total loss. The insurance company will likely pay you the market value of your car, not the price you paid. The payment will take into account depreciation losses and the deductible that you will have to pay.

It is essential to protect your car against theft

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Auto theft coverage is one step of the equation and can help people bounce back after the event. That said, it’s also essential to take precautions before a theft even occurs. There are many ways to make your car hard to steal or unattractive to steal. Most thieves aren’t looking to put in much effort, so they often choose the easiest targets.

So precautions that make your car a hard target can pay off big time. For example, thieves don’t like cars with many stickers because these stickers make it easier to identify the car. There are other simple steps people can take that won’t cost anything. Since thieves are looking for an easy target, just making sure your car is locked and there are no keys in the car may be enough.

RELATED: Nearly Half Of Car Thefts In Some US Cities Are Linked To Kia And Hyundai