Will Auto Insurance Cover Stolen Items?

In 2021, there were 27,495 vehicle thefts in Ontario. That’s a lot of vehicles stolen. The rates of stolen vehicles in Ontario are higher than most other Canadian provinces due to organized crime rings focusing on the theft of new vehicles to later resell or export overseas. Some vehicles are even stolen for the purpose of stripping for parts, which are then sold on black markets.

While the national vehicle recovery rate is about 57%, the damages done to stolen vehicles – and the items stolen from them – add up in costs. Will auto insurance cover stolen items from a vehicle? We also examine coverage questions if your vehicle itself isn’t stolen, but instead broken into. No one wants to wake up to a busted-in car window and a missing purse, wallet, phone, or other valuable.

In this article, and in this next segment of our series, “will auto insurance cover…?” we explain.

Comprehensive Coverage for Theft and Vandalism

If you weren’t already aware, comprehensive car coverage, is an optional car insurance endorsement designed to be added to an existing auto insurance policy that can cover non-collision damages. For example, comprehensive coverage will cover your car for damages due to fire, windstorm, ice, hail and, yes, there is auto coverage for vehicle theft and vandalism.

Let’s break down “theft and vandalism” a little further. Theft, being the action/crime of stealing something, and vandalism being the intentional damage or destruction of property. Because theft and vandalism are covered by comprehensive coverage, would it be reasonable to assume, therefore, that items stolen from your vehicle fall under “theft” and would be covered?

Unfortunately, theft in this instance may only apply to the theft of the vehicle itself (grand theft auto) or components of the vehicle, such as permanent, pre-installed parts. While your auto insurance will cover the cost to repair or replace your stolen vehicle, your auto insurance policy does not provide coverage for items stolen from within your vehicle. Personal belongings, like your wallet or expensive snow jacket, wouldn’t be covered by comprehensive coverage.

Will other policies cover the theft of personal belongings from a vehicle?

Yes. If you have renter’s insurance or home insurance, odds are that you will also have contents coverage – which can cover the cost of replacing or repairing any of your insured belongings. There are limitations, of course, and in some cases specific valuables may require the addition of a jewellery insurance rider or high-value item rider to be covered.

Contents coverage policies will cover your stolen or damaged personal belongings, anywhere in the world. We advise keeping documentation, like receipts, photos, warranties, etc., of your belongings to expedite the claims process and ensure you get your sure and fair settlement if a loss does occur.

We already know that auto thefts are on the rise, particularly due to the increase in key fob car thefts (i.e., a phenomena where car thieves will capture the signals of key fobs and later replicate them to break into vehicles and steal them.) It’s good to know that, even in the event of a break-in, there is some coverage for our personal belongings.

Mitigating the Risk of Car Theft & Theft of Personal Belongings

One of the best ways to avoid having to make a claim altogether for stolen personal belongings out of a vehicle is to mitigate the odds of a burglar getting access to your car in the first place. Here are some tips for vehicle theft and break-in prevention:

• Park your vehicle somewhere secure – ideally in a garage, a private parking space, or underground. Generally, vehicle theft occurs in high access areas, like in dimly lit public lots, street parking, and above-ground lots. If you do park in a garage, keep your garage opener somewhere that is secure.
• Always turn off your vehicle and take the keys with you, even if you’re stepping out to grab a drink from your nearest convenience store. Leaving your vehicle running is an open invitation for thieves to steal your car and its belongings.
• Lock your doors when you leave. Thieves seldom want to work too hard to take your vehicle, so leaving it unlocked is basically begging for theft. Lock your car and tug the handle to be sure.
• Make sure your key fob is guarded and not left too close to where your vehicle is parked. Key fob thieves can copy your fob’s signal and replicate it to gain access to your vehicle. Never leave your key fob unattended in any public space.
• Install a car alarm. Not only will this qualify you for an insurance discount, but it’s an added layer of protection. No thief wants the whole neighbourhood to be alerted by your panic alarm.
• Tuck away your valuables or, better yet, take them with you wherever you’re going! Nothing’s more enticing than having your valuables left out in full view on your seats or on your dash.

As always, Excalibur’s Defenders are happy to discuss your auto insurance with you at the earliest convenience. Pick up the phone to call us today or, if you aren’t already insured, get a free quote with us, and see how Excalibur can get you cheaper rates for your auto insurance in Ontario