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Imagine someone breaks into your car and steals your backpack — and the laptop inside of it. Or the guitar you left in the backseat. Or the phone you forgot to disconnect from the charger. Theft of a personal item can be a real drag. And if it’s ever happened to you, you may wonder if your car insurance covers it.
The answer to this question is typically no, but that doesn’t mean you’re out of options. Here’s a look at other ways you may be protected in case of theft.
Key Points
• Standard car insurance does not cover theft of personal items from a vehicle.
• Comprehensive auto insurance covers vehicle damage from theft, including broken windows.
• Homeowners and renters insurance can cover personal items stolen from a car, subject to policy limits.
• To file a claim, document theft, file a police report, and contact the insurance company.
• Filing a claim for stolen items may increase insurance rates due to perceived higher risk.
The Short Answer: Homeowners or Renters Insurance Is Key
Standard auto insurance policies typically do not cover theft of personal items from your car. That said, homeowners and renters insurance may. Let’s dive in.
Why Car Insurance Typically Doesn’t Cover Personal Belongings
Car insurance coverage is designed to protect your vehicle only, not the items that are inside. So built-in components like a catalytic converter are covered, but the laptop in your backseat isn’t.
That said, if someone breaks into your car, does insurance cover it? As we mentioned, it likely won’t cover the items that were stolen. But your insurance may cover damage to your vehicle caused during the break-in, such as a smashed window.
How Your Home or Renters Policy Protects Items in Your Car
Homeowners and renters policies are designed to protect your personal property at home and away. While your car insurance may pick up the cost of a smashed window, turn to these other two policies to cover your stolen laptop, at least to a certain extent.
What Comprehensive Auto Insurance Covers
We often talk about car insurance as an umbrella term for several different types of coverage. One common kind of coverage is comprehensive insurance, which can help pay for damages not caused by a collision.
Protection for the Vehicle Itself
Comprehensive insurance covers damages to your car from theft, vandalism, accidents with animals, and other events such as fire or natural disaster. It’s not required and is typically an add-on to your insurance policies.
Comprehensive coverage usually has a deductible you’ll need to pay before it kicks in. For example, if you have a $500 deductible and $1,000 worth of damage, you’ll pay the first $500 and your insurer will step in and pay the rest.
How Comprehensive Differs from Personal Property Coverage
Comprehensive insurance covers your vehicle itself. It doesn’t cover moveable objects you may bring in and out of your car. That said, if there are items that you’ve attached to your car, such as a bike rack, for example, it’s possible they are covered under your comprehensive policy.
Personal property coverage, on the other hand, helps protect personal items against covered perils like fire or theft. It’s part of a homeowners or renters insurance policy.
Limits and Exclusions Related to the Vehicle
There are typically limits to your comprehensive coverage. For instance, it does not usually cover custom parts. And if you’ve installed a custom stereo and it is stolen, comprehensive insurance is unlikely to cover it.
It also does not cover damage done in a collision or anything related to normal wear and tear or mechanical breakdowns. And it may go without saying, but no car insurance will cover any damage that is intentional.
Homeowners and Renters Insurance Considerations
Homeowners and renters insurance both help protect your personal items. Homeowners will also protect the physical structure of a home, while renters insurance coverage does not protect the structure of the home occupied by the tenant.
Both types of insurance are subject to several limitations.
Recommended: Does Renters Insurance Cover Bike Theft?
Off-Premises Coverage for Your Personal Belongings
In general, renters insurance and homeowners insurance cover personal belongings losses that occur away from the home. But coverage is limited. Typically, there’s a maximum payout that’s capped at a certain percentage of your personal property coverage.
For example, if your personal property coverage is $50,000 and your off-premise coverage is capped at 10%, then items off-premise are covered up to $5,000.
Understanding Your Deductible and Policy Limits
As with comprehensive coverage, your homeowners and renters insurance will also likely have a deductible. You’ll need to pay this first before your insurance steps in.
It’s also important to understand the personal limit, or the amount up to which your policy will cover. Renters tend to be able to set their own personal limits based on the value of their belongings. For homeowners, personal property limits are often set as a percentage of the dwelling coverage. The personal property limits might be 50% of the dwelling coverage, for instance. So a homeowners policy with $300,000 worth of dwelling coverage would have personal property coverage of $150,000.
Recommended: A Comprehensive Guide to Homeowners Insurance
Tips for Filing a Claim Under Your Home or Renters Policy
Ideally, when you get a home or renters policy, you’ll create an inventory of your personal belongings. You can do this by making a room-by-room list of each item and its value. Document these items as best you can with photographs, videos, and receipts for valuables.
Filing a claim starts with documentation as well. Take photographs of all damaged areas, and don’t throw away damaged items until your claims adjuster has inspected them. If your items have been stolen or vandalized, file a police report and get a copy of it for your records. If you’re a renter, contact your landlord as well. They will be responsible for any damage done to the building.
Contact your insurance company and supply them with your policy number and contact information. They’ll assign an adjuster, who will review your policy, assess your claim, and offer a settlement. If you do not agree with the settlement, you can discuss it with your insurer.
Recommended: A Comprehensive Guide to Renters Insurance
The Takeaway
The theft of a personal item from your car can be distressing. But if someone breaks into your car, does car insurance cover it? Personal items stolen from your vehicle aren’t typically covered by your car insurance, but they may be covered under your homeowners and renters policies. To stay protected, learn how your policies work together to help ensure your valuables are covered.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
FAQ
So, which policy covers items stolen from my car: auto or home/renters?
Homeowners and renters policies typically both cover personal items that are stolen from your car. Auto insurance policies do not.
Is it worth filing a claim for stolen personal items due to the deductible?
If the value of the item exceeds the deductible, then it may be worth filing a claim. However, if it is under the deductible, it may not be worth your trouble.
Are expensive items like laptops or phones fully covered?
Expensive items are usually covered after you’ve paid your deductible. For instance, if you have a $500 deductible and a stolen laptop is valued at $1,200, you’ll pay the $500 deductible first. Your insurance will step in and cover the remaining $700.
Does my comprehensive coverage pay to repair a broken window after a break-in?
Yes, your comprehensive coverage will typically pay to repair a broken window after a break-in. However you’ll likely have a deductible that you’ll need to pay first before it kicks in.
Will my rates go up after filing a claim for theft from my car?
Unfortunately, your rates may go up after you file a claim. That’s because rates are set based on risk, and filing a claim indicates that a risk of future claims is more likely.
photo credit: iStock/tuaindeed
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