Can Your Homeowners Insurance Company Cover a Stolen Vehicle From Your House?

Can your homeowner's insurance policy cover losses for people who steal things if they break into your home or garage? Many of your personal belongings will be covered. Unfortunately, if they steal your car from your garage, your homeowner's insurance carrier is not likely to cover the costs. Vehicle theft is generally covered through other types of insurance plans, but many people incorrectly assume that a home insurance policy will cover car theft from a garage as well. Not being aware that it does not leaves many people financially unprotected for this situation.

It is essential to have protection in case your vehicle gets stolen, and also to keep in mind that the risk of a vehicle being stolen from your garage is higher in some neighborhoods and areas than in others. Knowing who covers auto theft, and which types of plans you should be carrying overall is vital. Your vehicle is likely one of your most expensive investments and one that deserves protection. Replacing it can be difficult to do, especially for people who do not have large amounts of savings.

After reading this article, take the time to compare policies from multiple companies in order to help yourself save money in the long run. Plans have both limits and deductibles, and you will want to make sure you can afford the deductibles and that the limits you choose are enough to replace your vehicle if it is totaled or stolen and not recovered.

Who Covers Auto Theft?

Automobile theft, regardless of where it occurs, is covered by your automobile insurance plan. It is up to your automobile insurance company to pay for the loss, but only if you have the proper type of automobile insurance that covers the situation. Your homeowner’s insurance plan will cover both your home and your possessions inside, but the automobile is considered separately, and almost all states require a minimum amount of automobile insurance to drive legally.

Comprehensive Coverage For Your Car

The minimum limits for car insurance in your state do not include coverage that protects you from theft, however. You will need to purchase an additional insurance policy, called a comprehensive insurance plan, in order to be protected from theft or vandalism of your vehicle. This protection can help you save tens of thousands of dollars. The actual cash value of your vehicle is what a comprehensive insurance plan covers. For people who own an older vehicle, if their insurance premium is more than 10 or 15% of the current value of the vehicle per month, it may make sense to drop the coverage. In 8 to 10 months the payments to your premiums could buy you a similar vehicle.

Coverage For What's Inside

There are some things that are vehicle-related that can be covered by your homeowner's insurance plan, however. While the vehicle itself is not covered by insurance, the contents that are in the vehicle are likely to be covered by your plan. A person’s homeowners insurance plan generally covers personal property that is stolen from your vehicle. There are some definitions and factors that need to be navigated when determining if an item in your vehicle is part of your car or not. If you have questions about specific items in your vehicle, make sure to contact your car insurance provider for more information. A good example that tends to be used is whether or not the stereo installed in your vehicle is covered. If the stereo is not factory-installed, meaning it did not with the vehicle, it is generally covered by your homeowner's insurance plan. The radio that came with the vehicle, the factory-installed one, is generally covered by your automobile insurance plan.

Off-Premises Coverage

Even if your vehicle is not on your property, your homeowner's insurance policy offers a limited amount of coverage. The amount of coverage in the situation is different than if the vehicle was located on-premises, but can still be hugely beneficial. If you have $500,000 in coverage for your policy overall, the off-premises coverage will generally be about 10% of that, at $50,000. Most people do not have $50,000 in their vehicle that can be stolen at any given point in time, so this is generally more than enough coverage. For people who have $100,000 in coverage on their policy overall, their off-premises coverage would be around $10,000. Still substantial, but maybe not enough to cover everything in your vehicle if you are carrying more expensive items around.

One of the best ways to get a higher amount overall of coverage for the same price, is to shop around to different companies. Comparing rates at Homeowners is the top way to save on a plan and keep more money in your wallet.