Does Liability Insurance Cover Theft?

Car theft is a big problem that affects many drivers in the U.S. According to the FBI, there were an estimated 721,885 motor vehicle thefts in 2019, resulting in a loss of $6.4 billion. If you face a car theft, you may ask does liability insurance cover theft.

The auto insurance type and the theft’s specifics will determine the answer.

What Is Liability Insurance?

Liability insurance is the minimum coverage each state requires to carry on your vehicle.

The common types of liability insurance include:

• Bodily Injury: It covers medical bills, lost wages, pain, and suffering of the other driver and passengers.
• Property Damage: This coverage repairs or replaces other people’s property damaged during the accident.

Also Read: Do Insurance Companies Go After Uninsured Drivers?

What to Do When Someone Steals Your Car?

After you find that your car has been stolen, take the following steps as soon as possible:

• To prove that you are not accountable for any damages or injuries caused by the thief, you must claim with your insurance provider and provide a police record.
• Contact your insurer and provide details, such as the make, model, year, license plate number, VIN, and car location. You must also provide them with relevant documents along with a police report.
• You should also inform them of the robbery if you have a loan or lease on your car. They may have some rights or obligations regarding the payment or recovery of your vehicle.
• If you used your credit card to pay for any items or services related to your car, such as gas, tolls, or parking fees, you should also notify them of the theft. They may be able to reverse some charges or provide protection against fraud.

Avoid Doing These Things

When dealing with car theft, avoid doing such as:

Leaving your keys in your vehicle

Although it might seem obvious, many people make this error, which makes it simpler for thieves to steal their cars. Never leave your keys in the ignition, under the mat, or in any visible or accessible place.

Leaving valuables in plain sight

Thieves may be tempted to break into your car if they see any items of value inside, such as laptops, phones, wallets, purses, or jewelry. Always lock your doors and windows and store your valuable items in the trunk or glove compartment.

Parking in unsafe areas

Try to park your car in well-lit, populated, and certain regions with cameras or security guards. Avoid parking in dark, isolated, or unfamiliar places where thieves may target your car.

Ignoring warning signs

If you notice any signs of tampering with your car, such as broken windows, scratches, dents, or missing parts, report them to the police and your insurance provider instantly. Please don’t assume that it was a minor incident or that nothing was stolen.

Car Theft and Insurance Scenarios

Unfortunately, several scenarios may involve car theft, including:

• Break-in: If a break-in damages your car, your comprehensive policy (not your liability insurance) will typically cover any repair or replacement costs, including broken door locks, windows, or a damaged ignition system.
• Stolen vehicle: This situation also depends on your car insurance type. Your vehicle’s cash value is likely covered if you have comprehensive coverage.
• Theft of personal items: If a thief takes your items from inside your car, is it covered by liability insurance? Unfortunately, no.

Does Car Insurance Cover Vandalism?

Vandalism is another form of damage that may affect your car. Vandalism is any intentional or malicious act that damages or defaces your vehicle, such as graffiti, keying, slashing tires, or breaking windows.

Like theft, vandalism is not covered by liability insurance but by comprehensive insurance. If you have full fledge coverage, you can file a claim for destruction and pay a deductible to repair or replace your car.

Does Liability Insurance Cover Theft?

As you can see, liability insurance does not cover the theft of your car or any personal items inside it. Liability insurance only covers physical injury and property loss you cause to others in an accident.

It also doesn’t cover damage a thief may cause if your car is involved in an accident after being stolen.

What Kind of Insurance Covers Theft?

You need comprehensive coverage if you are serious about protecting your car after it’s stolen. This type of insurance pays most of the costs to repair or replace an automobile damaged or unrecoverable because of theft.

Comprehensive insurance covers incidents that traditional liability or collision policies typically don’t, such as fire, flood, hail, vandalism, animal collisions, and falling objects.

What Does Liability Coverage Include?

Liability coverage is an essential and mandatory type of car insurance that every driver should have. This insurance will cover you if you are held financially liable for another person’s injuries or property damage due to an accident.

It does not cover theft of your car or vehicle damage. Your state’s minimal liability coverage requirements and your preferences will determine what you need. However, having more than the minimum amount is advisable to avoid paying out of pocket for any excess damages or lawsuits.

Conclusion

Car theft is a serious and costly problem that can affect anyone. You need comprehensive coverage, not liability insurance, to protect yourself from losing your vehicle and personal belongings.

Does liability insurance cover theft? Liability insurance only covers damage you cause to others in an accident, not damage or theft of your car.