Does renters insurance cover car theft? It is quite a common question searched by many American car owners, considering car thefts are common in the country.
Over one million vehicles were estimated to be stolen in the previous year. What’s more worrying is that the number increased by almost 7% yearly.
It is relatively straightforward that a thief or a burglar would not distinguish between a rented or owned car. Hence, irrespective of the nature of your vehicle, the importance of car insurance is rather critical.
does renters insurance cover car theft
No, renters insurance in the US typically does not cover car theft. It covers your personal belongings inside your rented dwelling and sometimes even outside when stolen, but not the vehicle itself.
However, if your car is damaged while parked in your insured area (like your apartment garage), then your comprehensive car insurance (not your renter’s insurance) might cover the damage.
Remember, insurance policies can vary based on specific companies and coverage options. Always check your policy details for accurate information about your coverage.
What is Renters Insurance and Does It Cover Robbery?
Before answering the question, does renters insurance cover car theft or not, it is critical to consider its meaning. Renters insurance notably protects homeowners who intend to let out their residential properties. The primary focus of renters insurance is to safeguard the tenant’s personal belongings and protect them against risks, including theft, fire, water damage, vandalism, and certain natural disasters.
Renters insurance also helps tenants in case of robbery, offering coverage for personal items stolen from the property. This means that even if a theft occurs in your home, your belongings may be protected under the policy.
What is the Main Objective of Renters Insurance?
The main objective of renters insurance is to reimburse tenants for any losses they suffer due to the above-mentioned reasons. The coverage includes different categories of rented properties, such as furniture, electronics, and other appliances. The insurance also provides liability coverage to protect tenants against accidental damage or injuries to any third party visiting the property.
The fundamental meaning of renters coverage does not consider any damage coverage of vehicles. It is a facility meant to protect tenants against any mishaps that damage the property and other assets, along with third-party injury protection.
What To Do if Your Car is Stolen or Broken Into?
Renters insurance coverage would not provide any material protection in case of car theft. However, it is strongly suggested that an individual or car rental company opts for comprehensive car insurance covering such instances. From a general perspective, assuming that the owner has a car theft insurance policy, one can follow these steps when a vehicle is stolen:
- Collaborate with Police and Insurance Provider: The claim process might take weeks or months. Cooperating with all parties involved ensures a swift resolution.
- Contact the Police: The initial step is to contact your nearest police station. Provide details such as the vehicle’s make, model, license plate number, and any distinguishing features.
- Notify Your Auto Insurance Provider: Once the police formalities are over, provide the report to your insurance company. The insurance company will verify the details and guide you through the process of filing a claim.
- Review Renters Policy: Cross-check if your renter’s policy covers belongings stolen with the car (e.g., a laptop). File a claim with your renter’s insurance provider if applicable.
Does Renters Insurance Cover Car Theft?
No, renters insurance does not cover cars or any other vehicle theft. Therefore, it is highly recommended that a vehicle owner purchase a separate auto insurance policy covering them against any such mishaps. Auto insurance can be comprehensive, third-party liability only, or auto-collision protection.
Auto insurance can be comprehensive, third-party liability only, or auto-collision protection. Such comprehensive coverage protects a vehicle against theft, accidents, damage, and liability.
Car insurance is mandatory in the US since 1925; however, the coverage requirements differ from state to state. It is also critical that the vehicle owner understands the categories of add-ons and limitations of renters insurance before deciding the most appropriate car insurance.
What Does Renters Insurance Cover?
The obvious question here is if renters insurance does not protect cars, what exactly is included in it? Here are some assets that are generally covered by renters insurance:
- Personal Property: Personal properties include furniture, electronics, clothing, appliances, and other possessions inside your rented property. Renter’s insurance protects such properties against fire, theft, vandalism, and other acts of god.
- Liability Protection: In case of an injury suffered by any third party while visiting the rented property, renters insurance helps cover medical expenses, legal fees and potential lawsuits.
- Additional Living Expenses: Some add-ons help cover various additional expenses (short-term) such as temporary accommodations, meals and other necessary expenses in case a house is rebuilt or renovated.
- Off-Premises Damages: Some renter’s insurance also provides protection of personal properties even when they are used off-premises. For instance, we talked about losing a laptop with a stolen car, which might be covered by renters insurance.
How to Protect Yourself From Car Theft
- Always lock your doors – This simple step Important discourages opportunistic thieves.
- Upgrade your security with an immobilizer system – This adds an extra layer of protection with features like smart keys and kill switches, making it much harder for someone to steal your vehicle.
- Invest in a car tracking system – If your car is stolen, keep a tracking system greatly increases your chances of recovering it.
- Never leave your keys in the car – This is a major security risk, as it gives thieves easy access to your vehicle. Keep your keys with you at all times.
Conclusion
So to answer the question: Does renters insurance cover car theft? The objective of renters insurance is not to protect an insured against any category of car theft. This insurance is meant to protect personal property and third-party injury loss coverage in the case of a rented property.
With car theft being a severe issue in the country, it is significant that a vehicle owner must have a comprehensive auto insurance policy that protects the vehicle as well as third parties during any mishaps.
