Overhaulin'

Does car insurance cover car theft?

I want to sign up for progressive car insurance. What if your car gets stolen? Does the insurance reimburse you? How much do they reimburse you (the car I want is $5300)? What is the deductible usually? Which option do you have to sign up for to get reimbursement? Thanks.

Public Comments

1. If you are financing the vehicle you are planning to get you will need to have full coverage in which case the answer is yes; you will be covered in the event that your car is stolen. Comprehensive coverage covers this and is valuable to have even if you are not required to have full coverage as it also covers damage to the vehicle from natural causes (such as flood, wind, tornado, etc) Here's a good article to check out to find out more regarding what types of coverage cover what http://www.cheapercarinsurance.com/articles/comprehensive-and-collision-coverage-on-your-car-insurance-quotes/
2. Liability will not cover auto theft, but Full Coverage will. and some insurance have where you choose your own deductible, i believe the higher the deductible you choose, the more it covers.
3. Courtney is correct, you definitely want what's called comprehensive insurance (comp). If your car happens to get stolen, you will be reimbursed what your insurance company states is the value of your car minus what you choose as your deductible. However, if you finance your car rather than pay cash for it, I would advise you to purchase gap insurance as well. It's usually pretty cheap, and gap insurance covers any difference between what you owe on your car and what your car is worth. For example: You buy your car for 5300. Several months later, your car gets stolen. You still owe 4900. Your insurance tells you that your car is worth 4000. You have a $500 deductible. Your gap insurance will pay the company you finance your car from $400 (4000 + 500 + 400 = 4900) so you won't have to pay anything further on a car you no longer own. This also applies if your car is destroyed in a car accident, although you'll need to purchase collision insurance for that. Hope all that made sense.