Questions about Insurance: Theft Recovery

January 27, 2012

An important part of buying a new car is purchasing insurance for theft recovery and it can cover everything to collision as well. Add-ons to your policy should be determined by what is most crucial to you, but considering car theft insurance is important, as it covers the entire car if it is stolen, as well as most things taken from inside the car.

The Deductible

When you are deciding whether or not to take out insurance for theft recovery, make sure you review your policy's deductible. The deductible is the amount of money you will pay before the insurance company covers any cost. The deductible is only applicable one time so once you pay that amount, the insurance company is liable for any future claim in full. When choosing your stolen car insurance policy, you have to make a decision: either pay higher monthly payments and have a low deductible. Or if you'd rather have lower monthly payments, you'll have to have a bigger deductible.

Links to Home Insurance

If your car was stolen out of or broken into while in your garage, you may want to contact your home insurance company to see if they will cover any of the claim. Also be aware that some personal items taken from a car may not be covered under your car theft insurance, but may be covered under your home insurance policy. The auto insurance company could claim those items should not be in the car-things like a laptop, shoes or electronics that are not essential to operating the vehicle.

Your Rights

Finally be aware that it is illegal for any car dealer to force you to include car theft insurance in your policy. If your credit rating is low, it will help you get the car, but it is not mandatory. Whatever you choose in the way of insurance for theft recovery, just make sure you explore all of your options and know what is covered and what is not, in the event you need to make a claim.