Car theft can be a frightening experience. You leave your car parked one moment, and the next, it's gone. If your car is stolen, one of your first questions is whether your auto insurance will cover the loss. In many cases, the answer depends on your coverage type.
Let's break down how auto insurance can protect you in the event of theft and what steps you should take if it happens.
When it comes to auto insurance, the type of coverage you have plays a significant role in whether or not you are protected if your car is stolen.
Comprehensive coverage is the part of your auto insurance policy that protects against non-collision damage, including theft. If your car is stolen, comprehensive coverage can help reimburse you for the vehicle's replacement or its current market value.
If you only have liability or collision coverage, you may not be covered for theft. This is why it's essential to understand the different types of coverage and how they work.
Liability insurance covers damages you cause to others in an accident, while collision coverage helps with repairs if you're in an accident. These types of coverage typically do not include protection for theft. Comprehensive coverage is required to ensure your car is covered in case of theft.
If you find yourself in the unfortunate situation of having your car stolen, here are the steps to take:
Report the theft to your local police immediately. You'll need the report for your insurance claim and possibly any investigations.
Once you have a police report, inform your insurance provider about the theft. They will guide you through the process of filing a claim.
Your insurance company may ask for the car's registration, any available tracking data, and any other documents that help prove ownership.
If your car is covered under comprehensive insurance, you'll typically receive either its actual cash value (ACV) or its replacement value. ACV takes depreciation into account, meaning it reflects the value of the car when it was stolen, not what you paid for it when it was brand new.
Your pay-out may be more substantial if your car is new or in good condition. Some policies may offer additional options, such as new car replacement coverage, providing more than just the car's ACV.
Car theft is a serious concern; knowing what your auto insurance covers is essential if the unexpected happens. Comprehensive coverage is the key to protecting you from theft, so it's worth considering if you don't already have it.
At Jack Stone Insurance Agency, we can help you understand the right coverage for your needs. If you have any questions or want to discuss your auto insurance options, contact us at (925) 392-8365 to protect your vehicle from all risks.
