Does Car Insurance Cover Theft of Car Parts?

Auto insurance will cover a stolen car if you have comprehensive coverage included in your policy. Does Car Insurance Cover Theft of Car Parts? Car insurance cover theft is an optional auto insurance coverage that pays for losses that arise from incidents other than a collision, including theft, fire, vandalism or malicious mischief, weather, birds or animals, glass breakage, falling objects, explosion or earthquake, windstorm, hail, and more. 

Like collision coverage, which covers physical damage to your vehicle after a collision, it is not required by law most states, but your lender or leaseholder may require it. 

Comprehensive coverage is usually subject to a deductible. 

If you have comprehensive coverage on your auto insurance policy, it can help pay for your stolen vehicle if it is not recovered. If you get your vehicle back, it will cover the damage that has been done to it. (Keep in mind that you may need additional coverage for custom parts, paint, rims, and other aftermarket additions.)

Any individual property or valuables (cell phones, laptops, tools, etc.) stolen out of your car or stolen with your car won’t be covered by auto insurance, but you’ll likely have coverage under your homeowners, renters, or condominium insurance. 

Comprehensive coverage only covers the components and features that are permanent, preinstalled parts of the car. If your car was stolen with personal items inside, you would need to file one claim with your auto insurance policy and another with your homeowners insurance policy.

Does Car Insurance Cover Theft of Car Parts?

Liability insurance does not pay you for a stolen car or car parts. To assure that parts stolen off your car are covered, you must also have comprehensive or “other than collision” coverage. Even then, only the car parts that are original from the factory, not customized parts, are likely insured.

How to Protect Your Car from Theft

A few simple practices can help you protect your car from theft and all of the cost and inconveniences that follow. 

  1. Always take your key; never leave it in your vehicle.
  2. At home, keep your vehicle in the garage whenever possible.
  3. Never leave your vehicle running when you leave it, even if you think it will only be for a few minutes or that you are in a safe area. 
  4. Always roll up the windows and lock your car, even if it is parked in front of your home. 
  5. Always park in high-traffic, well-lit areas. When possible, park in lots that have security or parking lot attendants. Don’t park in the farthest corner of the lot. 
  6. Consider installing a mechanical device that locks the steering wheel, steering column, or brakes.
  7. Consider purchasing a vehicle theft tracking or security system. 
  8. Don’t leave spare keys in your car or in a magnetic box attached to the underside of your car. Thieves are aware of all of the common hiding places. 

Could my car insurance claim be rejected?

There is a possibility your claim could be rejected if the insurer thinks you hadn’t been careful enough. If the keys are left in or around the car, you are unlikely to have your claim covered. If there is no sign of break-in, you may have to prove your keys weren’t easily accessible.  Your insurer could also argue you did not secure your car well enough.

If you disagree with your car insurance for rejecting your claim, you have every right to dispute the decision. In this situation, the best thing to do is make sure you have enough supporting evidence to back up your argument. You should also make an official complaint to your insurer if they are taking too much time to settle your claim for no valid reason. 

How to Recover your Car from Theft

As you can see, taking out car insurance goes a long way to helping you get back to square one after the theft of your vehicle. If you value your car think seriously about insuring it properly.

Car theft is one of those scenarios that you think will never happen to you. But car theft can happen to anyone. In fact, Australia has one of the highest rates of car theft in the world, with a car stolen every 12 minutes. The good news is that knowing what to do in the event of a theft will increase your chances of getting your vehicle back. Here are the steps you should take if your car gets stolen: Here’s What To Do

1. Stay Calm: Losing your car is nerve-wracking but panicking won’t do any good either. Instead, focus on staying calm. For example, if you parked somewhere, ask people around if they noticed anything out of the ordinary. There may be a chance that someone saw it leave. Remember to write down what they have seen and get their contact information for reference. You can also check if there are any closed-circuit television (CCTV) cameras in the area, which can help authorities.

2. Call the Police: The sooner you call the police, the better your chance of getting your car back. Notify authorities immediately so they can send word to officers on duty to look out for your vehicle. After calling the police, you’ll file a stolen car report and provide key information about your vehicle such as model, make, and VIN number. You will also need to report personal belongings left inside the car when it was stolen, especially if they include important documents.

3. Contact Your Insurance Provider: After calling the police, you’ll need to contact your insurer. Report details of the theft and confirm your policy number and coverage. If you have a comprehensive car insurance, your provider may cover the costs of car rental, the stolen car, or damage caused by the theft. Check your policy or confirm the details with your car insurer. If your car is under a finance agreement, you should also call the lender. Both your insurer and lender will likely require a copy of the police report so make sure to have it on hand.

4. Inform Other People: If you had ID, credit cards, or other important belongings inside your car, notify your bank and other providers as soon as possible. You should also call a locksmith and have your locks changed if you left your house keys in the car.

5. Check Online: Check online car selling sites to check if any cars match your vehicle’s description. Some online sites will allow you to post your car’s description so other users can keep an eye out for it too.

6. Think About Getting a Replacement: If the police have exhausted all means to find your car and it still hasn’t been returned, it’s best to move on and think about replacement options. A comprehensive car insurance may cover the cost of getting a new vehicle so ask your insurer about it. Hopefully, once you get a new car, you won’t have to go through car theft again.

7. Better Protect Yourself: Car theft can happen to anyone, regardless of what model of car you drive or where you are.

A comprehensive car insurance from PD covers your car for loss or damage caused by a theft, including a new vehicle (if yours is less than 12 months old) or agreed value for your car if it’s stolen or a write-off) and a rental car if your car is stolen.

Over to You – What to Do When Your Car is Stolen?

We’d love to know if you have any more tips to help others out? Or, feel free to share your experience below.

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