Auto liability insurance covers a wide range of damages to vehicles, buildings, and structures like fences if you are determined to be at fault. In this article, we explain whether it also covers theft.
Does Auto Liability Insurance Cover Theft?

While they tend to make life more convenient, cars carry a certain amount of risk. Vehicle-related accidents can lead to damage to the car itself, third-party property damage, or even bodily injury to others—all of which represent potentially significant costs. Auto insurance can help protect drivers and car owners against financial loss or liability in the event of a claim.
However, auto insurance isn’t a catch-all term; there are different types of car insurance coverage to consider. Some common policy options include:
- Liability insurance
- Collision insurance
- Comprehensive insurance
- Uninsured/underinsured motorist insurance
- Medical payments coverage
- Personal injury protection insurance
- Gap insurance
Liability insurance is a common type of auto insurance because it is legally required to be maintained in most states. What exactly is auto liability coverage, and does auto liability insurance cover theft?
What Is Auto Liability Insurance?
Auto liability insurance is designed to help cover the cost of bodily injury and property damage suffered by third parties resulting from a covered accident. Simply put, auto liability insurance helps protect the policyholder from financial liability incurred if a covered accident causes harm to another or another’s property – but it does not help pay for repairs or medical bills incurred by the covered driver.
But does auto liability coverage include theft?
Does Auto Liability Insurance Cover Theft?
While auto liability coverage helps protect the policyholder from financial liability arising from a covered accident with a third party, it does not cover damages resulting from theft. If a car is stolen or gets damaged in a break-in, auto liability insurance would not cover the resulting damages. To address situations such as this, other auto insurance coverage types should be explored.
What Does Auto Liability Insurance Typically Cover?
If auto liability insurance doesn’t cover automobile theft or damage caused by a break-in, what does it cover? Auto liability insurance typically includes two different types of coverages, Bodily Injury Liability and Property Damage Liability:
Bodily Injury Liability
Bodily injury liability coverage typically helps cover the medical costs and other associated expenses incurred by a third party resulting from an accident where the covered driver was at fault. This type of coverage does not cover injuries sustained by the covered driver. It is a third-party liability coverage that will typically cover medical and related expenses incurred by the other party in the covered accident. While the terms and conditions of each policy may vary, common expenses that may be covered include:
- Emergency care services
- Hospital expenses
- Ongoing care
- Emotional counseling
- Loss of income
- Funeral costs
- Defense costs incurred by the covered driver in the event of litigation
Property Damage Liability
Property damage liability coverage helps cover the costs of damages incurred to third-party property resulting from a covered accident, including other vehicles, homes, businesses, trees, lamp posts ,and, in some cases, pets. This type of insurance helps cover costs associated with repairing and replacing others’ property but does not cover damages to the policyholder’s own property.
Auto liability insurance will typically cover loss and damages up to the limits set in the policy (minus the deductible). Costs exceeding the policy’s limits may remain the responsibility of the covered driver.
While auto liability insurance is designed to help cover liability arising from bodily injury and property damage to third parties as a result of a covered accident, there are other types of loss and damages that it does not cover.
What Type of Auto Insurance Typically Covers Theft?
Auto liability insurance is important and, in many states, mandatory. But it doesn’t provide coverage for theft, vandalism, or damages caused by break-ins. For theft-related coverage, comprehensive insurance may be a good option.
What Is Comprehensive Auto Insurance?
Comprehensive auto insurance is designed to help cover damages to a covered auto for certain non-collision events, such as theft of a vehicle, vandalism, fire, or natural disasters.
While the terms and conditions of each policy may vary, comprehensive auto insurance typically does not provide coverage for collision events or items stolen from within the vehicle (which may be covered by homeowners insurance or renters insurance policies). Additionally, comprehensive auto insurance typically does not cover costs associated with natural wear and tear on the vehicle — usually these costs may be covered by the manufacturer’s warranty or paid out of pocket.
Who Should Consider Comprehensive Auto Insurance?
While comprehensive auto insurance is not mandated by state law, it is an important insurance coverage to consider as some lenders may require it if a vehicle is being leased or financed. Also, comprehensive auto insurance may be an important consideration for those who live in areas with high rates of car theft or for those who live in areas where natural disasters are common.
The Right Auto Insurance Solution to Help Meet Your Needs
While auto liability insurance is designed to help cover liability arising from bodily injury and property damage to third parties as a result of a covered accident, there are other types of loss and damages that it does not cover. Policyholders should consider additional coverages to help protect against loss or damages resulting from theft, falling trees, and certain types of collisions.
Are you ready to explore your auto liability insurance coverage options? Acrisure can help. Contact us today; we can evaluate your insurance needs and work with you to find the right coverage to help protect you and your property. Or request an auto insurance quote online!