How To Cover Auto Theft Through Car InsuranceIn order to be compensated for car theft, you must carry comprehensive coverage. Comprehensive insurance covers vehicle theft, and property damage due to vandalism and natural disasters. The first step to protecting yourself against auto theft, therefore, is to obtain a comprehensive auto insurance policy.
Obtaining Comprehensive Coverage
You can add this kind of physical damage coverage to an existing car insurance policy by contacting your car insurance provider directly. You can also compare comprehensive insurance rates online, or by contacting the Insurance Department in your state.
Be aware, however, that because comprehensive insurance offers further protection than a standard insurance policy, your annual auto insurance premium is likely to rise when you add this type of coverage.
Ways to Lower Your Auto Insurance Premium
Fortunately, you can lower your auto insurance premium in a number of ways, to include the following:
- Consistently practice safe driving habits. This can also cut down on the number of auto claims you have to file.
- Avoid traffic citations and auto accidents.
- Drive a vehicle your car insurance company considers safe.
- Drive a vehicle not likely to attract potential thieves and vandals.
This last point will not only help lower your annual premium; it will also protect you from vehicle theft in the first place.
In addition to comprehensive insurance, consider purchasing gap insurance. The purpose of gap insurance is to cover the gap between what your car is worth and what you still owe on the vehicle loan, in the even of auto theft or a total loss accident.
For example, if you still owe $12,500 on your vehicle loan, but your vehicle has significantly depreciated in worth―say, to the point that it is only worth $9,500―your gap insurance policy will cover the remaining $3,000.
Gap insurance is the only type of insurance that will cover this gap. All other insurance types―including liability, collision, and comprehensive insurance―will only cover what the vehicle is worth. While your vehicle might still have been in good shape when it was stolen, many vehicles―particularly expensive vehicles―depreciate in value by as much as 30% within three months of purchase.