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Stolen! What does your auto insurance cover?

No, your car insurance doesn't ALWAYS cover your car being stolen. Here's why...

GREENSBORO, N.C. — That moment. That feeling. It’s when you realize your car is gone, as in stolen. It happens to people every day. In fact, Forbes looked at the data and estimates every 36 seconds, a vehicle is stolen somewhere in the U.S.

We’re talking 900,000+ autos a year. That’s the big picture, but what about right here in NC?

“I have a client and he had two vehicles stolen over one weekend. Crazy, but like a lot of rural folks, including myself, he doesn't lock his car and not only does he not lock his car, he leaves his keys in it,” said Christopher Cook of Alliance Insurance Services.

Keys in the car? The car is unlocked? Does insurance cover it? Yes, but really, why invite the headache? You might think that if someone steals your car then you can get something better or newer.

Just be aware, your insurance covers the (ACV) Actual Cash Value of the car, not what you owe on your car. For example, your car may only be worth $5,000 but you owe $7,000 on it. You would still be on the hook for the $2,000 left on the loan, for the stolen car.

Don't miss this: Not all auto insurance policies cover theft

Auto insurance has several components.

Liability: covers bodily injury or property damage to other drivers, this coverage is required.
Collision: covers crash damage. That's required too.
Comprehensive: covers theft, damage to your auto due to theft, break-in, a falling tree, or ice. This is not required. If you don't have it, you're out of luck.

    

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