The United States is home to the most amount of automobiles in the world. There 240 million cars in this country, which also means there are 240 million cars to steal in this country. Car theft is huge in America. An estimated $8 billion business, automobile theft shows no signs of slowing down. In fact, according to the FBI, in the United States a car is stolen very 26.4 seconds. The odds that a car will be stolen are about 1 in 200 (with the odds being higher in urban areas).
Does Your Car Insurance Policy Cover Theft?
So with all these cars being stolen, how can you protect yourself? You may be asking yourself – does my car insurance policy even cover theft?
Car insurance policy holders aren’t typically covered for theft unless they have purchased comprehensive auto insurance. This insurance covers any damage to the vehicle including theft, vandalism, natural disasters, fire, etc. Comprehensive insurance is not required by law (like collision insurance is), but because of the additional coverage, many people choose to include this type of insurance on their car insurance policies. Comprehensive insurance is recommended for people with newer and more expensive vehicles.
Another kind of insurance coverage, liability insurance, will not cover theft of your vehicle. Liability insurance protects against claims that your actions caused bodily harm or property damage. Although liability insurance is important to have, and is required by law in most states, it will not cover your vehicle in case of theft.
Tips To Prevent Your Car From Being Stolen
If vehicle theft is not properly covered by your auto insurance policy, then you need to be extra careful to make sure your vehicle is not stolen. Here are some safety measures you can take to prevent your car from being stolen:
- Lock your car doors. This might be obvious to some people, but a lot of times people forget.
- Do not leave your keys in your car. Also do not have an extra spare key hidden anywhere in or outside your car. You make think you are clever hiding a key behind your license plate or under your car, but these are often the first places that thieves will look.
- Park in well-lit and safe areas. Do never park your Lamborghini in a seedy part of town and expect it to be safe.
- Install security systems in your car. Car alarms and lojacks are all good ways to prevent your car from being stolen.
If, in the unfortunate event that your car is stolen, you need to contact your local police department and your insurance company right away. They will investigate the theft of your vehicle. If your vehicle is not located after a certain amount of time, your theft claim will be paid to you (less the amount of your deductible). The insurance company will pay you the market value for your vehicle (Kelly Blue Book, or other). If you have any additional customizations made to your vehicle (such as stereo, wheels, DVD, etc), make sure you get them insured as well. Your insurance company will not pay for them unless you obtained specific coverage for those items.
So, does your car insurance cover theft? Whether you drive one of the most popular cars to steal or not, you are still at risk for theft. Ask yourself – can you really afford to buy a new vehicle if it is stolen without theft coverage? Start shopping around for comprehensive insurance coverage today. Use the internet to compare prices and get a quote specifically tailored to your vehicle. It might not be as expensive as you think.