Is Car Insurance Covered in the Event of a Carjacking?

You may be the safest driver in the world. No matter how well-protected your vehicle is — including a steering wheel club lock — it could still be stolen from inside a locked garage. Stolen cars are a terrible experience, but at least they’re covered by auto insurance, right? It’s not as simple as you might think.

Car insurance may cover theft, but only if it’s the right type of insurance. This is what we learned from President of Blais Insurance in Rhode Island’s Lincoln when we spoke with Edward L. Blais JD CIC for more information. He walked us through the different types of insurance policies that cover car thefts. The car insurance expert was also subjected to various hypothetical situations.

Is Theft From My Car Covered by My Insurance? Yes. Most of the time.
“Theft is theft” is Blais’s mantra when it comes to auto insurance. So the answer is yes, but it’s not a resounding “yes,” either.

Among other things, “Other Than Collision” covers theft in Rhode Island. Blais says, “It used to be called comprehensive.” There had already been a name for it before that: Fire and Theft. The term “Comprehensive” is still commonly used in other states.

Only if the policyholder was somehow involved in the theft of the vehicle would this plan not cover the theft. That’s a complete and utter scam.

Many things are typically covered by comprehensive insurance, including “missiles, falling objects,” “theft,” “larceny,” and “wind storm,” “contact with birds or animals,” and “mischief,” according to Blais. Typical “Act of God” scenarios, to put it mildly.

To be clear, this comprehensive level of protection goes above and beyond the minimum requirements of liability coverage.

Deductibles, Limits on Comprehensive Coverage, and Types of Coverage
It doesn’t matter if your car is stolen if you only have basic liability insurance.

Nothing much happens according to Blais. You and your assets are protected from the claims of third parties when you have liability insurance.” Nothing to do with insuring the automobile’s physical condition”

In addition to the mandatory liability and collision coverage, you’ll also require comprehensive insurance. The deductible for comprehensive insurance is also variable. However, it can cost as much as $500 on occasion (or more).

Insurance buyers determine the deductible’s price sensitivity, says Blais.

According to a number of factors, including the driver’s history, the condition of the vehicle, and the frequency of theft in the area and of the vehicle in question, the rates have already been established.

In 2016, the most stolen vehicles were the 1997 Honda Accord, 1998 Honda Civic, 2006 Ford F-Series, 2004 Chevrolet Silverado, and 2014 Toyota Camry. The National Insurance Crime Bureau’s “Hot Wheels” report in 2016 included these figures, which are used to determine your comprehensive insurance rate.

A Car Theft Can Have a Serious Effect.
You wake up one morning to find your car nowhere to be found. You might come out of the mall and find that your car has been taken. You should call the police and file a police report as soon as possible. Call your insurance company then.

An official police report will be requested by the insurance adjuster, according to Blais, and this will help establish the validity of your claim.

Depending on the location of the crime, the size of the police force, and other factors, the results of the investigation will vary.

You will be contacted by an adjuster as this investigation progresses and they will inquire about your insurance coverage. Furthermore, it is impossible to obtain full coverage insurance after the fact. They will begin the process of making you whole if you have adequate insurance coverage.

The process itself is subject to variation. It’s possible to get homeowner’s insurance coverage for a project car that’s on blocks and doesn’t run, says Blais. For example, if your house burns down and you have your project car on blocks. “Special things or situations” necessitate “special insurance,” says Blais.

In the event that your car is stolen, and the thief gets into an accident with your vehicle, you will not be responsible for the damages.

In the event of a car break-in, what are your legal options?
The next morning, you go to your car and discover that it is still there, but the window has been broken. If the thieves couldn’t drive stick because you have a manual transmission vehicle, they may have focused on your personal belongings instead. Things get a little more complicated. It all depends on what the owner had in the car, where it was, and how he or she used it.

If you had any valuables in your car, such as a cell phone, CDs, or a purse, your homeowners insurance should cover them. It’s possible that you’ve got a high-end digital camera with multiple lenses that was stolen from your trunk. A business policy or a special scheduled policy would cover that equipment if your usage is found to be related to your job. Once again, a unique insurance policy is needed in the event of an unusual situation.

In the Event That Your Customized Parts Are Stolen, What Happens?
As a driver, you can customize and personalize your vehicle to your heart’s content. There are countless options for customizing your car, ranging from aftermarket audio components to custom wheels and engines. However, just because these parts are now on your vehicle does not mean that they are covered under the same policy together. (Insurance companies would have a field day with the Ship of Theseus).

  • In the middle of the night, “your standard stereo is covered by the auto policy,” says Blais. Also, a large number of aftermarket devices are protected.
  • The rationale here is that most late-model cars have high-end stereo systems, and aftermarket ones are just as good as the stock ones.
  • Under your homeowners insurance, however, it is covered if you are using the adapter to connect a portable music player such as an old iPod.
  • “You won’t get comped, even under the most robust [comprehensive] policy,” explained Blais, “if you take the stock wheels off the car and replace them with $5,000 wheels and tires.”