Does Car Insurance Cover Theft? Common Types of Car Insurance Coverages Explained

Car insurance policies generally consist of different forms of coverage, each intended to address distinct categories of risk or loss. Common types of car insurance include:

1. Auto Liability Coverage: Generally required by most states, this type of insurance covers claims alleging third party injury or property damage arising from an accident where the policyholder was at fault.

Auto liability insurance doesn't cover theft.

2. Collision Coverage: This type of insurance covers claims arising from damage to your car resulting from a collision with another vehicle or object, such as a guardrail, tree, or building, regardless of fault. Auto collision insurance is not required by law in any state, but lenders often require collision (and comprehensive) coverage if you are leasing or financing your vehicle.

Collision insurance doesn't cover theft.

3. Comprehensive Coverage: This type of insurance covers non-collision-related damages or losses, such as theft, vandalism, natural disasters, and other incidents such as contact with an animal. Many lenders require comprehensive coverage, in addition to liability coverage, if financing or leasing a car.

Comprehensive insurance is a type of coverage you should consider if you're concerned about coverage for claims arising from theft.