Does Liability Insurance Cover Theft? (In 2023)

Does Liability Insurance Cover Theft?

Are you worried about the rising rates of theft in your neighborhood? Are you wondering if your liability insurance will rescue you if you fall victim to theft? It’s time to solve the mystery. 

So, find out if liability insurance can shield you from theft or leave you high and dry.

Does liability insurance cover theft? The crime rate in many U.S. cities remains high despite high-tech automobile advancements. Find out the answer to this popular question.

What Is Liability Insurance?

What Is Liability Insurance?

Each state requires you to carry a liability policy on your vehicle. A fault accident policy pays you for your expenses. So, this policy consists of two types:

  • Bodily injury: It covers medical bills, lost wages, pain, and suffering with the other driver and passengers.
  • Property damage: This coverage repairs or replaces property damaged by the accident.

Does Auto Insurance Cover a Stolen Car?

The liability policy does not cover car theft. It pays for accidental damages you cause to others. In an accident, a thief who steals it may also damage it.

Car Theft and Insurance Scenarios| Does Liability Insurance Cover Theft?

Car theft can occur in several scenarios, including:

  • Break-in: Your comprehensive policy will usually cover any repairs or replacements resulting from a break-in, including locks, windows, and ignitions
  • Stolen vehicle: This situation also depends on your car insurance type. Your vehicle’s cash value is likely covered if you have comprehensive coverage.
  • Theft of personal items: Does liability insurance cover the theft of personal items from your car? The answer is no. A comprehensive auto policy covers your car’s permanent and pre-installed components. The coverage only covers belongings left inside, such as iPods and wallets. Most renter’s and landlord’s insurance cover these items.

What Kind of Insurance Covers Theft?

Comprehensive coverage protects your car after it’s stolen. This type of policy pays most repair and replacement costs for damaged or stolen vehicles. 

Rather, a comprehensive policy covers incidents that a liability or collision policy does not cover. The purpose of it is to pay for damages caused by you. 

So, it doesn’t cover theft or other damage caused by others. With this coverage, you get loads of supplemental protection, including:

  • Theft of your vehicle
  • Break-ins
  • Vandalism

More so, comprehensive policies cover theft and break-in damage to your car. Your comprehensive policy pays up to the ACV of your vehicle minus your deductible. 

In addition, you may have to replace your vehicle out of pocket if you need a comprehensive policy. All states do not need comprehensive coverage. 

Likewise, it’s an optional policy addition that your agent can add as a rider or supplemental coverage. Unless your policy specifies that the policy covers total replacement value, that’s not enough to replace your vehicle.

What to Do When Someone Steals Your Car?

To recover your car, you must respond quickly. You should also know if can I get liability insurance on a financed car. Contact the police as soon as you realize your car is gone. Here are the steps to start the claims process after meeting with an officer:

  • File a Police Report

As soon as possible, report the theft to authorities. You should contact your policy agent when the police seek your missing vehicle.

File an Insurance Claim To determine your claim amount, your policy agent needs as much information as possible. 

Some carriers allow you to file a claim online. You’ll need the following information to submit your claim:

  • The car’s title
  • Location of all keys to the vehicle
  • Contact information of everyone with access to the car
  • A complete description, including mileage, service records, and upgrade
  • Contact information for your lender
  • Your car insurance policy number

Also, your provider may run a credit check. A stolen vehicle claim filed by someone with significant debt may raise policy fraud questions.

  • Contact the Lien Holder

In the case of a financed or leased vehicle, notify the bank right away. You will get the final settlement from your insurer if you do not recover or total your car. 

Further, you can let them handle your claims directly with your car policy company.

  • Get It Inspected

Whenever the police find your stolen car, have it inspected by a body shop and a mechanic? It is common for thieves to steal automobiles for parts. 

Moreover, ensure your vehicle is in good working order before getting behind the wheel.

Does Car Policy Cover Vandalism?

Your comprehensive car policy will cover vandalism. After an incident, take these steps to start the restoration:

  1. You should contact the police to report the vandalism.
  2. Make a report to the authorities.
  3. Take note of all the damages to your car.
  4. Make a list of any stolen items.
  5. Take pictures of scratches, graffiti, or other damage for documentation.
  6. Submit your claim to your auto insurance company.

At Last Words

Lastly, most liability insurance policies do not cover theft. Your liability policy protects you from claims made by others for bodily injury or property damage. 

Moreover, it does not cover the theft of your personal belongings. You may need to buy separate policies to cover theft, such as property or renters insurance. 

Further, ensure you understand your policy’s coverage and exclusions by reviewing it with care and consulting your provider.


What does liability insurance not cover?

Most liability policies do not cover personal property. It also doesn’t cover theft. Ensure you read your policy carefully and understand what it covers and excludes.

Do I need a separate policy for theft if I have homeowner’s insurance?

A homeowner’s insurance policy covers the theft of personal belongings. Review the specific terms and limits of your homeowner’s policy. You may need a separate renter’s policy if you rent a property.

Can I add theft coverage to my liability policy?

Does Liability Insurance Cover Theft? The liability policy does not cover theft. Adding an endorsement or coverage option, you can add theft coverage to your liability policy. For more information, contact your policy agent.