Does Liability Insurance Cover Theft? Everything You Need To Know
Does Liability Insurance Cover Theft Overview
Does liability insurance cover theft? Unfortunately, many of us have had to ask ourselves that question from experience. It’s bad enough to be at the location where you last parked your car only to find out it’s been stolen. Then, not surprisingly, it’s even worse when you realize you don’t have the type of insurance to cover the loss.
We cover more than liability insurance and car incidents such as theft at Pitsas Insurances. We also like to ensure that our customers understand their many insurance options, so in this article, we will ask the right questions surrounding liability insurance and theft.
We will cover everything you need to know about liability insurance, other types of coverage, and if car insurance covers theft at all. You can find this and more in the following article.
- Does liability insurance cover theft?
- What are the different types of car insurance?
- Which car insurance type is best?
- What is the most common car insurance?
- Do I need car insurance?
- What does car insurance not cover?
- Does car insurance cover maintenance?
- Do I need to obtain car insurance before buying a vehicle?
Does liability insurance cover theft?
Liability insurance is also known as third-party insurance, so the question is whether third-party liability insurance covers theft. The short answer is, unfortunately, no, liability insurance doesn’t cover theft. The only car insurance package that covers theft is comprehensive insurance. However, there is one exception to this.
Regarding liability insurance, it is the minimum coverage required and required by law. Liability insurance covers accidents involving other people’s medical bills and another party’s bodily injuries, for example, and additional costs resulting from an accident for which you are at fault.
Nevertheless, the exception is that there is also an intermediary package that covers theft and fire (i.e., if the car is destroyed by fire regardless of the cause).
You will find the option for a Third Party Fire & Theft intermediary package on Pitsas Insurances website, in addition to Third-Party Liability and Fully Comprehensive.
What are the different types of car insurance?
As noted above, there are different car insurance coverage types to suit different needs.
The car insurance coverages available through Pitsas Insurance, and most reputable insurers, are Third Party Liability, Third Party Fire & Theft, and Fully Comprehensive.
To summarize what type of car insurance you might need, we’ll run through some car theft and insurance scenarios.
Car theft and insurance scenarios
Case number 1: Your car was damaged due to attempted theft
If you have comprehensive coverage, you’ll be covered.
Comprehensive insurance will typically cover repair costs for your vehicle, which may include the following:
- Broken door locks
- Smashed windows
- Broken ignition system
Case number 2: Your car was stolen
This scenario also depends on the type of car insurance you have. If you have comprehensive coverage, your vehicle’s value will be covered. As mentioned, liability won’t cover theft, however, you're in luck if you have third-party fire and theft coverage.
Case number 3: Personal items were stolen from your car
Stolen items are usually not covered by car insurance. However, some insurance providers offer an amount of coverage in their comprehensive offers, such as Pitsas Insurance’s Fully Comprehensive motor insurance package.
Most comprehensive auto insurance will only cover the pre-installed parts of the car or components and features of the vehicle that are permanent.
If your car was stolen along with personal items inside the car, you would normally need to file two claims – one through your homeowners’ insurance and one through auto insurance.
In the case where the owner of the car is eligible for compensation, the insurance company pays the replacement value of the car (not the value declared on the insurance) minus the deductible amount.
If the car is found after the compensation was paid, then either the vehicle can return to its owner after he/she returns the compensation money, or it can be acquired from the insurance company.
A licensed independent valuator decides which is the replacement value of the car. The valuator has access to open and closed databases that show the average value of all types of cars (new and used).
The deductible amount is declared on the insurance.
Which car insurance type is best?
In short, fully comprehensive coverage is the best type of car insurance.
While there’s not a specific insurance policy for car theft specifically, there is a policy that covers theft, among other incidents. Fully comprehensive coverage is one of those policies.
You will find that most comprehensive packages typically cover theft and other damages to your vehicle, and some of this coverage will cover causes other than a collision.
Incidents such as theft, damage from falling trees or natural disasters, and damages caused by vandalism are all covered by comprehensive coverage.
That’s why Pitsas Insurance often recommends comprehensive car insurance to our customers.
You can choose what coverage works for you as we have different packages to suit your needs, from Third Party Liability to Third Party Fire & Theft and Fully Comprehensive car insurance.
Car vandalism and insurance scenario
Let’s look at a different scenario to theft, in the unfortunate event someone vandalizes your vehicle. As mentioned, comprehensive car insurance will cover theft and any damages caused by vandalism.
If this occurs, all you need to do is follow these steps to begin the restoration process:
- Report the vandalism to the police.
- File a police report with the authorities.
- Make a note of all the losses and damages.
- If anything is missing, list any stolen items.
- Take pictures of the damage for documentation.
- Submit a claim by contacting your auto insurance company.
At this stage, considering your options, you might want to upgrade your insurance plan. If you have liability insurance and would like to upgrade your coverage to comprehensive, it’s entirely possible to do so. You should contact your insurance provider to find out more about your options.
What is the most common car insurance?
Regarding the most common car insurance, third-party insurance is the most popular since it is obligatory by the law, and it’s seen as desirable by most drivers as it’s typically the cheapest option.
However, the least expensive doesn’t make it the most desirable option in terms of coverage.
Third-party insurance doesn’t cover theft, instead, it usually covers fewer scenarios than more expensive variations. While liability insurance covers instances such as bodily injury to another party or damages resulting from an at-fault accident, it doesn’t cover car theft.
What you pay for with comprehensive coverage could save you money in the future should your car be stolen.
If you’re looking for motor insurance covering theft, you need an alternative option.
Pitsas Insurance has options for all such scenarios, Third Party Liability, Third Party Fire & Theft, and Fully Comprehensive, all with competitive rates.
You will find a comparison table on our website comparing all three packages.
Using another car theft scenario, here’s another way to assess your car insurance options to help you understand why comprehensive coverage is best.
If your car is stolen, and you only have liability (third-party) insurance, then you know you will not be covered for that theft. However, it’s worth noting that if you have comprehensive coverage, you will be covered for your vehicle's Actual Cash Value, also known as ACV.
Similarly, if your car is damaged due to attempted theft, you’ll also be covered by comprehensive coverage due to AVC being covered. This coverage includes broken windows, door locks, damage to the ignition system, etc.
Filing a Police Report & Insurance Claim
If your car has been stolen, it’s best to file a police report within 24 hours of the theft and file a claim. You will need to provide your details, such as proof of insurance, car registration, and your driver’s license. Here are other details that might be on your police report:
- VIN and license plate number.
- Car’s year, make, and model.
- Location and the estimated time of the theft.
- Identifying vehicle traits, such as bumper stickers or accessories.
- Certificate of Title.
- Location of the car keys before and after the car was stolen.
- Names and info of all parties who had access to your car.
- Vehicle description, i.e., mileage, service records, upgrade, and options.
- List of personal items that may have been stolen with the car.
- Financing or leasing company contact info and your account number.
Do I need car insurance?
Yes, auto insurance is required worldwide, with a few exceptions to this rule.
Nevertheless, where formal insurance isn’t needed, financial responsibility is still required if you cause an accident, so technically, you always want to be protected and insured.
Driving without insurance can result in a hefty fine or in license suspension, and in a worst-case scenario, it can result in jail time.
Pitsas Insurance, and most reputable insurers, will ensure any policy you select meets your country’s requirements.
What does car insurance not cover?
Generally, it’s common practice for car insurance to omit maintenance costs.
A basic car insurance policy won’t cover mechanical failures or cosmetic wear and tear. People who regularly drive your car but aren’t listed on your policy are also not typically covered or driving on a ridesharing platform.
However, it’s sometimes possible to add coverage to your insurance to cover what your current auto policy doesn’t. You might also choose to purchase a separate policy or warranty to do that. For example, you can add coverage of other drivers to your Pitsas auto policy.
Does car insurance cover maintenance?
In summary, no, car insurance does not cover maintenance. Maintenance to your vehicle, general wear, and tear, and mechanical failures aren’t covered by auto insurance.
However, if your vehicle is damaged or caught in an accident, Pitsas’ roadside assistance coverage can help.
Most reputable insurers will ensure you’re not without aid if caught in a roadside emergency.
Do I need car insurance before buying a vehicle?
You won’t need car insurance before buying a car, but you will likely need to show proof of insurance to complete the purchase and take your car home.
Some customers prefer to set up their policy to go into effect on the day they pick up their car since buying a new car can be an all-day event.
Your current coverage may temporarily extend to your new vehicle if you already have an existing policy, but this option can pose a risk.
This option is limited to the coverage you carry on your previous car, and in addition to this, this extension of coverage usually only lasts for one month.
That’s why it’s often recommended that you either add your new car to your existing policy or finalize your new policy on the day of your car purchase.
Car insurance cost
As mentioned throughout our article, the average cost of car insurance depends on numerous factors, including your driving history, NCB, and risk factors.
When looking for the right insurance with the right price suited to your budget, Pitsas Insurances can help you find exactly what you need.
Our varied car insurance packages provide a solution for every scenario you may face as a driver.
To summarize what affects car insurance costs, we have listed the following factors:
- Personal details such as age: driving experience, and the area you currently reside.
- Additional information: additional drivers (their age, their driving experience).
- Policy value: the value of the vehicle (in the case of comprehensive insurance).
- Vehicle details: the type of use of the vehicle (private, commercial).
- Type of insurance: third party, third party, fire and theft, fully comprehensive cover.
Pitsas Insurances offers competitive car insurance packages to suit all drivers and vehicles.
We are with you from the time of your claim, providing fast payments, courtesy vehicles, and support, for any court obligations.
Car insurance quotes
Pitsas Insurances provide hassle-free car insurance quotes which can cover you in the event of a theft or emergency incident involving your vehicle.
You’re welcome to view what auto insurance options we have on offer on our comparison table, there you will find all the details about each auto insurance option.
Alternatively, you’re welcome to ask any questions you may have. With our knowledge and experience, we will assist you in comparing our car insurance coverages to find the right one.
For more information about Pitsas Insurances car insurance plans, you can visit our site.
To get a quote, you can complete the questionnaire.