Does Insurance Cover Stolen Items From a Car?

When items are stolen from a car, many people assume their auto insurance will cover the loss, but this is often not the case for personal belongings. Different types of insurance policies may apply, each with its own scope and limitations. This article clarifies how auto, homeowner’s, and renter’s insurance policies typically address such incidents.

Auto Insurance Coverage for Stolen Items

Auto insurance, specifically comprehensive coverage, addresses damage to or theft of the vehicle itself. It protects against non-collision events like vandalism, fire, natural disasters, or car theft. A deductible applies to comprehensive claims, paid out-of-pocket before coverage begins. Deductibles range from $100 to $2,500, with $500 a common choice.

While comprehensive coverage handles parts permanently installed in the car, like the car stereo or custom wheels, it does not extend to personal items stolen from inside the vehicle. For instance, a stolen laptop, purse, or phone would not be covered under an auto insurance policy.

Homeowner’s or Renter’s Insurance Coverage for Stolen Items

Personal property coverage under a homeowner’s or renter’s insurance policy provides broader protection for belongings, even when they are not located at the insured residence. This coverage extends to items stolen from a car, as it applies to personal property wherever it is located, including off-premises. The amount of off-premises coverage is usually a percentage of the total personal property coverage, around 10%.

When filing a claim under these policies, a deductible will apply, similar to auto insurance. For valuable items such as jewelry, firearms, or electronics, policies include “sub-limits,” which are lower maximum payouts for specific categories. For example, coverage for stolen jewelry might be limited to $500 to $1,500, and firearms might have a sub-limit of $2,500. For items exceeding these sub-limits, additional coverage, often called a rider or endorsement, can be purchased for full protection.

Items Not Typically Covered

Despite having comprehensive insurance, certain items or circumstances are excluded from coverage under both auto and homeowner’s/renter’s policies. Cash is subject to very low coverage limits, sometimes as little as $100 to $250. Business property, especially high-value equipment or inventory, also has limited coverage or is entirely excluded, requiring a separate business insurance policy.

Data stored on electronic devices is not covered, only the device itself. Insurers may deny claims if the theft occurred due to the owner’s negligence, such as leaving windows open or doors unlocked. Understanding these exclusions helps manage expectations regarding reimbursement.

Taking Action After Theft

Discovering items stolen from a car requires immediate actions to facilitate any insurance claim. The first step involves reporting the theft to the police as soon as possible to obtain a police report. This report is an important document for any insurance claim and helps initiate an investigation.

Following the police report, document the loss by creating a detailed list of all stolen items. Include descriptions, approximate values, and gather proof of ownership, such as purchase receipts, photographs, or serial numbers. Finally, contact your insurance provider (auto, homeowner’s, or renter’s, depending on the type of loss) to initiate the claim process. Be prepared to provide the police report number and your comprehensive documentation to the insurer, as this information is important for their assessment.