While you’re driving down the road, it’s crucial to stay vigilant in case someone attempts to steal your car. You never know when a car can be snatched out of nowhere, and what’s more, you never know if the person behind the wheel is more concerned with your wallet or your vehicle. That’s why it’s essential to purchase auto theft insurance.
But what exactly does auto theft insurance cover? In this article, we’ll tell you everything you need to know about what does and doesn’t come with this type of insurance policy.
Who Pays For Auto Theft?
It depends on what state you’re in, but typically, the person who owns the car will be responsible for paying for any damage or loss. That means you, the policyholder, are on the hook for any repairs, even if the damage was caused by a third party. If you do have insurance, it will typically pay for the repairs or replace the vehicle if it’s totaled. However, if you do have auto theft insurance and the car gets damaged or stolen by a third party, the insurance will not cover the cost of repairs or lost income due to the car being down. In these cases, you will have to pay for all damages out of your own pocket.
This type of insurance is generally more expensive than normal insurance, but it’s considered to be extra security against physical harm or damage to your vehicle. If you want to keep your car, you’ll have to pay for any repairs out of your own pocket, so it’s essential to purchase this kind of insurance policy to feel safe driving your car.
What Does Auto Theft Insurance Cover?
When you purchase this type of insurance policy, you are given a list of exactly what the insurance company will and will not cover. Keep in mind that this is standard automobile insurance; as mentioned before, it will not cover damage that is directly caused by a third party. It also does not cover losses such as depreciation, which is the decrease in value of a car due to wear and tear.
Here is a short list of some of the most common items that you need to bring up when discussing coverage with your insurer:
- Title: This is the document that shows you are the legal owner of the vehicle. It’s commonly given to you when you purchase a car that has already been registered. In the case of a stolen vehicle, the police will issue you a title as well to help you in your investigation. Keep your title in a safe place, and make sure that it is up to date.
- VIN: This is the vehicle identification number, which is a unique number assigned to each car by the manufacturer. It should not be changed unless the vehicle is completely overhauled.
- Mileage: Show the odometer’s actualmileage whenever you fill up with gas, in case there’s been an accident and the gas tank is leaked. The gas company will not reimburse you for any additional mileage that has been charged, so make sure you keep track of how much you’ve really driven.
- Smoker/Non-Smoker: If you’re driving a vehicle that was manufactured before 2006, it is recommended that you get a medical checkup before getting behind the wheel. There is a chance that you may be detected by a car’s anti-smoker detector, and if this is the case, you may be in violation of the law. If you’re worried about being caught by a traffic ticket because of this, you may need to get a non-smoking driver’s license.
- Repairs/Parts: This is the part of your coverage that you’ll need to focus on. If your car gets damaged, you’ll need to have it repaired or replaced as soon as possible. While it is not always the case, these days it is not uncommon for insurance companies to only pay for repairs up to a certain amount. In some cases, you may need to pay for the whole thing. The same goes for parts; if you need a new tire, for example, you’ll need to pay for it yourself. If you do have parts insurance, make sure you notify your insurer as soon as you’ve been in an accident so that they don’t consider you a potential risk.
- Legal And Liability: This part of your coverage will protect you against lawsuits arising from accidents that you’ve had while driving. If you’ve had an accident, and someone was harmed or ended up in court because of it, this is where you’ll need to look for reimbursement. Make sure that you notify your insurer of any accidents that occur while driving so that they can investigate the claim and decide whether to cover it or not. If you’re unsure about this part of your coverage, you may want to get additional insurance or ask your insurer questions about it.
- Discretionary/Personal Accident Coverage: This part of your coverage will reimburse you for medical bills that you’re expected to pay yourself, in the case of an accident that is not covered by your other insurance policies. Examples of these types of accidents include fender benders, robberies or assaults that occur while you’re driving. Make sure you notify your insurer of these types of accidents so that they can decide whether or not to cover them. If you have discretionary/personal accident coverage, you may want to purchase supplemental insurance to cover these situations. It’s also recommended that you notify your insurer of any accidents that occur while driving, so that they can decide whether or not to cover them.
- Underlying Medical/Domicile: This part of your coverage will protect you and your passengers against medical bills while you’re driving. It comes into play in the case of an accident that you have with a pedestrian or another vehicle. Make sure you notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them. In some cases, you may need to have medical treatment administered on the scene of an accident. If this happens, make sure that you notify your insurer so that they can decide whether or not to pay for the treatment.
- Uninsured Motorist Coverage: This will protect you and your passengers in the case of an accident with an uninsured motorist. Make sure you notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them. In some cases, you may need to have an uninsured motorist clause added to your personal accident coverage.
- Renter’s Policy: This is a type of coverage that protects you in the case that you are a renter and decide to leave your car parked in a garage during your vacation. Make sure you notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them. In some cases, you may need to have a garage door opener installed so that the garage can be opened automatically when you enter the code in your key fob. This type of coverage is usually coupled with a standard collision policy.
- Fire/Smoke Damage: This part of your coverage will protect your car from damage caused by fire or smoke. Make sure you notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them. If your car is involved in an accident and catches fire, you’ll need to have it put out by a professional so that it doesn’t spread to other vehicles or properties. If your car is damaged by fire and you have this type of coverage, you may need to have it totaled due to the high cost of repairs. You also need to notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them.
- How Do I Get A Car Involved In An Accident?
As a driver, if you’re involved in an accident, the first thing you should do is pull over to the side of the road and call the police. This isn’t mandatory in all states, but it is a good idea to get them involved in the case so that an investigation can be opened. If you have a cell phone with you, it will be easier for the police to find you if they need to get in contact with you. They’ll then be able to ask you a few questions about what happened. It’s also a good idea to get the name and contact info of the other driver so that they can be reached if necessary. In the case of a minor accident, both parties may agree to settle things without involving the police, but in more serious cases, the other driver may decide to file a lawsuit against you.
If you are not the party at fault for the accident, you may be able to get your car back from the insurance company once they’ve checked it over. In some cases, they’ll give you a brand new one without asking too many questions. In other cases, they’ll ask you a few questions about what happened and then tell you that you’re legally responsible for the accident. Just make sure that you notify your insurer of any accidents that occur while driving so that they can decide whether or not to cover them. If you have any questions about your coverage, you may want to get in touch with your insurer directly rather than asking questions in a blog post.