Does liability insurance cover theft of your car?
UPDATED: Jun 20, 2011
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Asked June 20, 2011
If your car is stolen, your liability insurance will not cover it. Liability insurance comes in two types: property damage and personal injury liability. Property damage is the damage you cause to someone else's property when your are found to be at fault in an accident, and personal injury liability is designed to pay for the injuries sustained in the same circumstance. In neither case is liability coverage intended to repair or replace your vehicle under any circumstances.
The type of insurance you need to cover the theft of your car is known as comprehensive coverage. Comprehensive coverage includes the theft of your vehicle, someone breaking into the vehicle, and such things as vandalism. The purpose of comprehensive insurance is to cover incidents that are not included in traditional liability or collision coverages, and may be added to both no-fault insurance policies and the more common tort system of insurance coverage used in most states. Since liability insurance is meant to coverage the damages you are liable for, it would not insure your vehicle against theft or other damages you entail in relation to the misdeeds of another person.
Comprehensive coverage is not required by any state, and is usually a rider or supplemental policy added to your regular car insurance policy. Additionally, your comprehensive coverage may not replace your vehicle at all, but simply pay out the cash of your vehicle value minus the depreciation of the vehicle. To make sure that your stolen vehicle will be replaced, make certain that your comprehensive policy specifically states that you will receive full replacement value.
Answered June 20, 2011 by Anonymous