SoFi

If you’ve ever rented a car, you’re familiar with the moment at the rental agency when you’re presented with the opportunity to buy insurance. This can be a bit stressful, since adding insurance can significantly raise costs. However, it’s important to know that you may not need to.

If you carry car insurance of your own, your coverage may overlap with most rental coverage, and you won’t need to pay for duplicate coverage. What’s more, your credit card might provide an extra layer of protection. There are, however, some instances in which adding coverage may make sense. Let’s take a closer look.

Where Your Rental Car Coverage Can Come From

When you drive a car, you need insurance. That’s true for your personal vehicle and for rentals. When renting a car, insurance coverage can potentially come from three places.

Your Personal Auto Policy

Most car insurance policies will cover the same things as rental car insurance. So, what does car insurance cover? If you get in an accident, liability coverage can pay for damages and injuries you cause to other people and their property. Collision coverage should cover damages to your rental vehicle.

Your Credit Card Benefits

Some credit card companies offer coverage if you use your card to pay for the rental. This coverage is secondary and typically kicks in once your personal auto insurance has paid for what it’s willing to cover. That said, credit card coverage can be quite valuable. For example, it might reimburse you for part of the cost of your deductible.

Most major credit card companies offer some form of insurance. However, the exact details can vary depending on the bank that issued the card. Check the benefits guide for your card, or call the customer service number on the back of your card and ask what coverage they offer.

Insurance from the Rental Car Company

If you buy insurance from a rental company, it may include liability coverage to cover the cost of damages and injuries you cause. It may also include loss or collision damage waivers. These essentially release you from responsibility of damages caused to the vehicle during an accident or during theft or vandalism. There may also be personal damage coverage that covers injuries to yourself and personal effects coverage that covers the cost of items stolen from your rental car.

Recommended: A Comprehensive Guide to Auto Insurance

Key Coverage Limitations and Considerations

Your personal insurance and credit card coverage may be enough to cover your risks when renting a car. But there may be limits that are important to understand as you get to know how your car insurance works.

Understanding Your Deductibles and Policy Limits

Certain car insurance policies, such as collision and comprehensive coverage, have deductibles. They require you to pay up to a certain amount — $1,500, for example — before they kick in. If you have a very high deductible, it’s certainly worth checking to see if your credit card will cover part or all of it in the case of an accident.

For example, if your deductible is $1,500 and your credit card covers $1,000. If you were involved in an accident with $2,000 in damage, you’d still be on the hook for $500. If covering this difference feels risky to you, you may want to add rental insurance from the rental car company, which often carries no or low deductibles.

You’ll also want to investigate limits to your policy coverage. For instance, travel outside of the U.S. may not be covered, in which case you might want additional insurance.

Common Exclusions

In addition to exclusions for international travel, there may be additional exclusions for renting trucks or vehicles for business purposes. These vehicles present higher risks for insurance and potentially different legal liabilities.

However, your personal coverage may cover small pickup trucks. There’s often a weight limit, so it’s worth familiarizing yourself with your policy details before renting one.

Deciding If You Need to Buy Extra Insurance

If you’re considering renting a car, you’ll want to figure out how much insurance you really need and whether to buy extra insurance. If the vehicle you’re renting isn’t covered, that’s a no brainer: You’ll likely need extra insurance. The same goes if you don’t carry a personal policy.

Otherwise, it comes down to personal preference. You may want extra insurance if you have a high deductible or carry very low liability coverage, for example.

Buying insurance with the rental company bypasses your insurance company. So, you may also want to buy the insurance if you’re worried that an accident will cause your personal rates to go up.

What to Do Before and After You Rent

Before you’re asked to make a decision about coverage at the rental desk, it helps to gather all your facts.

Before You Rent: Steps to Check Your Coverage

Check what types of coverage your insurance provides. It may be easiest to contact your insurance company directly. Have the representative explain what your policy covers and any limitations.

With this information in hand, contact your credit card company and find out where their coverage comes in. Some cards offer primary coverage, though most will offer secondary coverage that kicks in after your auto insurance has finished paying. Credit cards typically provide a collision or loss damage waiver, but may offer little in the way of liability coverage.

In Case of an Accident: How to File a Claim

If you’re in an accident, notify your rental company, insurance company, and credit card right away. Start gathering evidence, including police reports, photos of the damage, and the other party’s contact information and insurance details.

Depending on who is at fault, you’ll work with your insurance company, the other driver’s insurance company, or a combination of the two to cover the cost of repairs. Depending on how much your insurance covers, your credit card may step in to cover further costs.

Recommended: How to Get Auto Insurance

The Takeaway

You don’t always need additional rental car insurance. But before you make that decision, get to know exactly what your personal car insurance covers and what protection your credit card offers. This knowledge can help you know exactly how much additional insurance you need, if any, when you rent a car. And avoiding duplicating coverage can potentially save you a lot of money.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Does my personal car insurance automatically cover rental cars?

Your personal car insurance may automatically cover renting a car. However, it’s important to ask your insurance carrier if your policy has any limitations.

Is the insurance offered by my credit card enough?

The insurance offered by your credit card may not be enough coverage. For example, your card could provide a loss and/or collision waiver, but may provide little in the way of liability coverage.

Should I buy the insurance offered at the rental counter?

If there are holes in your personal coverage or the coverage offered by your credit card, you may want to purchase additional insurance at the rental counter. You may also want to do so based on personal preference. For example, if you wish to avoid the possibility of your insurance premiums going up in the event of an accident, you might prefer buying insurance at the rental counter.

What happens if I get into an accident in a rental car?

If you get into an accident in a rental car, contact your insurance company and credit card company immediately. They will start the claims process. If you bought insurance through the rental car company, they will investigate the claim.

Does my car insurance cover U-Haul trucks or international rentals?

It’s likely that your personal coverage does not cover moving vans and international rentals, so you may want to consider purchasing additional coverage.

iStock/shaunl
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-020

Having the right insurance policy in place can help you get reimbursed if your vehicle is stolen. But comprehensive auto insurance is the only type of policy that covers theft. How does insurance cover a stolen car? Here’s what to know about how comprehensive policies work, how to file a claim, and exclusions that may not be part of your coverage.

Yes, Car Insurance Covers a Stolen Car — If You Have the Right Coverage

Not every type of car insurance covers a stolen vehicle. Even if it does, how does car insurance cover a stolen car? You’ll need comprehensive coverage in order to successfully file a claim.

Comprehensive Coverage: The Key for Stolen Car Claims

Does car insurance cover theft? It can if you have a comprehensive auto insurance policy. You can file a claim for one of two scenarios: a stolen vehicle that isn’t recovered, or one that is recovered. Here’s how coverage works for each one:

•   Vehicle is not recovered: After subtracting your car insurance deductible amount, your insurer will likely reimburse you for the vehicle’s actual cash value.

•   Vehicle is recovered: If you find the stolen vehicle and there’s damage (like broken windows), a comprehensive policy should cover the repairs after your deductible.

How Comprehensive Differs from Liability and Collision

Each state has its own basic requirements for car insurance, but there are actually four main types of policies to choose from with varying degrees of coverage.

•   Liability: Usually the minimum coverage required by states, it covers bodily injury liability and property damage liability of another person when you’re at fault for the damage.

•   Collision: This additional coverage repairs or replaces your car if it’s been in a collision, regardless of fault.

•   Uninsured motorist coverage: Uninsured motorist coverage pays out when you’re in an accident and an uninsured driver is at fault.

•   Comprehensive: This type of policy covers damage caused by things like theft, fire, vandalism, and fallen objects.

As you can see, the only way insurance covers a stolen car is if you have comprehensive insurance as part of your policy.

When a Stolen Car Is Typically Covered

If your car gets stolen, insurance covers it in a few scenarios under a comprehensive policy. It covers the car itself if it’s not recovered, damage if it is recovered, and stolen parts (including catalytic converters).

What to Do If Your Car Is Stolen

Your car is missing — now what? Here are a few things you need to do next.

Immediate Steps to Take After Your Car is Stolen

The first thing to do after your car is stolen is to call the police and file a report. A stolen vehicle report is typically required by the insurance company in order to get reimbursed.

Next, file a claim with your insurance company.

Finally, if your car was financed or leased, you must report the theft to your lender as well.

How to Report a Stolen Car to Police and Your Insurer

Once you call the police to report your stolen vehicle, you’ll need to give them some key information:

•   Vehicle make, model, and color

•   License plate number

•   Vehicle identification number (VIN)

•   Car GPS system details (if applicable)

The insurance claim process varies depending on your insurance company. Most offer options to file a claim online, over the phone, or through their app.

What Documentation You’ll Need for Your Claim

Here’s what insurance companies typically require when you file a claim for a stolen vehicle:

•   Vehicle title

•   Locations of keys both before and after the vehicle was stolen

•   Contact information of anyone who was able to access the car

•   Vehicle details, including mileage, maintenance records, and upgrades

•   Financing or leasing information

Recommended: How Much Auto Insurance Do I Need?

How a Stolen Car Insurance Claim Works

The claims process for a stolen vehicle is different than a collision because it’s likely that there is no physical car to assess its value.

The Waiting Period for a Stolen Vehicle Claim

Many insurers treat an unrecovered vehicle like a total loss. But first, they’ll enact a waiting period to see if your car is recovered. The waiting period usually lasts 30 days. After that period, they can initiate the appraisal process if your car hasn’t been located.

It’s worth noting that if your car is settled as a total loss and it’s recovered after you receive reimbursement money from your insurance company, they’ll own the car. However, it may be possible for you to buy it back.

How Your Car’s Value is Determined (Actual Cash Value)

Most insurance companies use actual cash value (ACV) to determine your reimbursement amount (up to the limit of your policy). That means you don’t receive the amount of money it would take to buy your car new today. Instead, the insurance company accounts for depreciation, which factors in things like age, mileage, and condition.

Submitting documents like maintenance and service work could help you qualify for a larger cash value estimate.

Common Exclusions and Limitations to Be Aware Of

It’s important to quickly notify your car insurance company when your car is stolen and respond to any follow-up requests. Otherwise, your claim could be delayed or even denied.

Other reasons that may limit your payout or cause a claim denial include:

•   Incomplete documentation

•   Unauthorized driver using the car

•   Lapsed policy

•   Car being used outside of the policy terms (like ride-sharing, for instance)

What Isn’t Covered When Your Car is Stolen?

In addition to those exclusions, here are some things typically not covered by a comprehensive car insurance policy.

Personal Belongings Left in the Car

Any personal belongings left in your car aren’t covered by your auto insurance when the vehicle is stolen. However, if you have renters, homeowners, or condo insurance, you should have coverage for stolen items, even if they’re outside the home at the time of theft. You’ll need to file a separate claim with that policy. Also understand that your policy’s deductible and personal property coverage limit also apply to how much you’ll be reimbursed.

Custom Parts and Equipment (Unless Endorsed)

Standard comprehensive policies usually don’t cover custom parts, upgrades, or anything added aftermarket. The exception is if you’ve added custom parts and equipment (CPE) coverage to your existing policy.

Theft Due to Fraud or Negligence

Your auto policy won’t cover a car theft if the policy holder fraudulently staged the theft or was negligent with the vehicle’s safekeeping.

Here are some examples of insurance fraud related to car theft:

•   Hard fraud: The owner plans a theft with a partner and files a claim with the insurance company

•   Soft fraud: When accurate information is left off the insurance claim, such as:

◦   Leaving out household driver information

◦   Overreporting the value of the car

◦   Lying about where the car is registered (since zip codes can cause price fluctuations depending on crime rates)

Recommended: Auto Insurance Guide

The Takeaway

Does car insurance cover theft? If your car is stolen and you have comprehensive auto insurance, it will cover the cost to repair or replace your vehicle, up to its actual cash value at the time of the theft, minus your chosen deductible. But keep in mind that If your car is found after the insurance company pays the claim, it will own the vehicle. You might be able to buy it back, if you wish.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Will my insurance pay for a rental car if my car is stolen?

Does insurance cover car theft of rental cars? Unfortunately, not as part of a standard comprehensive auto policy. Instead, you need to have rental reimbursement coverage included in your overall policy.

Does car insurance cover personal items stolen from my car?

No, personal items are typically covered by renters, homeowners, or condo insurance.

How is my stolen car’s value determined for the claim payout?

Your insurance company will assess the car’s value based on its actual cash value. They’ll take into account things like the age, condition, and mileage of the vehicle.

Will my insurance rates go up after a stolen car claim?

It’s possible that your insurance rate will increase after filing a stolen vehicle claim, even if you weren’t at fault.

What happens if my car is recovered after the insurance company pays my claim?

The insurance company will own the car. You may be able to use your settlement funds to buy back the car if you wish.

photo credit: iStock/Rattankun Thongbun
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-021

One of the main purposes of your car insurance is to help cover the cost of repairs when your car is damaged in an accident, during theft or vandalism, or during natural disasters. As this list suggests, standard auto insurance does not cover the cost of all repairs, like those caused by normal wear and tear.

As a policyholder, you’ll want to understand what is covered and what isn’t so you know where to turn when your car needs some TLC.

When Insurance Covers Repairs (and When It Doesn’t)

Your car insurance will typically cover repairs from damage that is sudden or accidental, such as car accident or hailstorm. But it’s likely your insurance will deny other types of claims.

Here’s a closer look at what your car insurance covers.

Repairs Covered by Collision and Comprehensive Policies

So, how does your car insurance work? First, it likely comprises several different types of coverage. Through your collision coverage, insurance should pay for repairs for damage caused during a collision with another vehicle, an animal, or stationary objects, such as a tree or guardrail.

Through comprehensive insurance, you should also be covered if your car is stolen or intentionally damaged by another person in an act of vandalism. Damage done during natural disasters, such as fire, floods, hail, or falling debris, is also covered under this type of policy.

Repairs Not Covered by Insurance

There’s a long list of things that you shouldn’t expect your insurance to cover. Routine maintenance and general wear and tear are not covered by standard auto insurance. Neither are mechanical breakdowns, such as a failing transmission, or damage done through lack of maintenance, like failing to change your oil. Unfortunately, you’ll have to pay for these repairs on your own.

It may also go without saying that damage you do purposefully to your vehicle is not covered. And if you damage your car while using it for business purposes or performing an illegal activity, your insurance may deny you as well.

Understanding Your Deductible’s Role in Repairs

Your collision and comprehensive insurance policies may have a car insurance deductible. This is the amount of money you’ll have to pay before the insurance kicks in. For instance, say a tree branch falls on your car, causing $1,500 in damage. If you have a $500 deductible on your comprehensive policy, you’ll need to pay that first, and your insurance will pay the remaining $1,000.

Recommended: A Comprehensive Guide to Car Insurance

What About Mechanical Breakdowns?

There is optional coverage that can provide further protection. Mechanical breakdown insurance (MBI) helps protect you from unexpected repairs and breakdowns after your manufacturer’s warranty expires. It’s usually offered as an add-on to your existing insurance policies, but there are also third-party providers who may sell it as a standalone policy.

How This Separate Coverage Fills the Gaps in Standard Policies

Standard policies do not cover breakdown-related repairs. MBI will step in and cover the cost of mechanical failures in major systems such as the engine, transmission, steering, axles, fuel systems, and electrical system. There is typically a deductible that you’ll need to pay first before this add-on kicks in.

Some policies may even include coverage for roadside assistance, which could cover you in case your car needs to be towed or you’re locked out or need to be jumped. If you’re stranded somewhere far from home, MBI may even cover the cost of lodging or renting a temporary replacement vehicle.

Note that MBI does not cover routine maintenance like oil changes, tuneups, or brakepads.

Who Should Consider This Type of Coverage?

You might consider MBI if your car is no longer under factory warranty. Your factory warranty should cover the cost of mechanical breakdowns. You may also be offered an extended warranty, but it is worth checking whether mechanical breakdown insurance is cheaper than this option. In general, MBI costs anywhere from between $30 and $100 per year. An extended warranty by comparison costs nearly $1,300 per year on average.

If you plan to keep your car for a long period of time, MBI may be worth considering, as the likelihood of breakdowns increases as your vehicle ages. If you don’t have a high tolerance for risk and you’re worried about large bills for major repairs, this coverage may also be worth exploring.

Recommended: When Is a Car Considered Totaled?

The Process: Filing a Claim for Car Repairs

When covered damage does occur, whether through your standard policies or MBI, you’ll need to file a claim with your insurance company. They will determine whether the damage is covered and how much they are willing to pay for the repair.

Steps to Take After Covered Damage Occurs

When damage occurs to your vehicle, your first step is to document the incident. If the accident involves another driver, get their name, phone number, and insurance information. Take down information about their vehicle as well, including the make, model, and license plate number. And if there were any witnesses, take down their contact information.

Take pictures and videos to document the scene of the accident. This will help show what damage was done to your car, the other person’s vehicle, and can help capture what the weather and road conditions were like. It can also be good idea to get a police report, which can help the claims process move more quickly.

Next, call your insurer and file a claim. You’ll need to provide your policy number, the details of the incident, and the police report, if you have one. An insurance adjuster will then investigate the damage and liability. You’ll likely need to send them the information you gathered documenting the accident.

The adjuster may assess the damage to your vehicle in person or they may have you take it to a repair shop, which will do the assessment for them.

Working With Your Insurer and Repair Shop

After you file a claim, your next step is to get a repair estimate from a body shop. Your insurance company may recommend shops or you can go to the shop of your choosing. You’ll submit this estimate to your insurance company.

Next, an adjuster may need to review the estimate and compare it to their own assessment of the damage. If the estimates are similar, your insurer will likely approve the cost. If they’re not, you may need to get additional estimates from other body shops.

Once the estimate is approved, the body shop can start repairs. Your insurer may pay the shop directly or issue a payment to you, minus your deductible.

Recommended: How to Lower Your Car Insurance

The Takeaway

Does car insurance cover repairs? Your insurance will usually cover the cost of repairs to damage done in an accident or other covered incidents. But it may not cover repairs for mechanical issues or general wear and tear. For that, you might consider mechanical breakdown insurance, which can help pay for certain types of mechanical issues after your vehicle warranty has expired. It’s a good idea to review your policy so you understand what it covers and when you might need to be prepared to pay for a repair out of pocket.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Does car insurance cover normal wear and tear on my vehicle?

Car insurance does not cover normal wear and tear on your car. Prepare to cover these expenses yourself. The good news is, they tend to be predictable, so it may be worth establishing a separate savings account to cover auto repairs.

What’s the difference between collision and comprehensive coverage for repairs?

Collision insurance covers damage to your vehicle caused by a collision with another car or an object. Comprehensive coverage protects you in the event of damage not caused by collision, such as theft, vandalism, animal damage, and natural disasters.

Will my insurance pay for an engine or transmission failure?

Your standard insurance will typically not pay for engine or transmission failure outside of damage caused during an accident. However, a mechanical breakdown insurance policy may cover these costs.

Do I have to use the repair shop my insurance company recommends?

Insurance companies may have a list of repair shops they recommend, but you do not have to use them. You can take your car to your own trusted mechanic.

What is mechanical breakdown insurance, and is it worth it?

Mechanical breakdown insurance helps cover unexpected mechanical and electrical issues after your vehicle warranty has expired. It is often cheaper than an extended warrant, and may be worth it if you plan to keep your vehicle for a long time.

photo credit: iStock/koldo studio
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-022

Imagine someone breaks into your car and steals your backpack — and the laptop inside of it. Or the guitar you left in the backseat. Or the phone you forgot to disconnect from the charger. Theft of a personal item can be a real drag. And if it’s ever happened to you, you may wonder if your car insurance covers it.

The answer to this question is typically no, but that doesn’t mean you’re out of options. Here’s a look at other ways you may be protected in case of theft.

The Short Answer: Homeowners or Renters Insurance Is Key

Standard auto insurance policies typically do not cover theft of personal items from your car. That said, homeowners and renters insurance may. Let’s dive in.

Why Car Insurance Typically Doesn’t Cover Personal Belongings

Car insurance coverage is designed to protect your vehicle only, not the items that are inside. So built-in components like a catalytic converter are covered, but the laptop in your backseat isn’t.

That said, if someone breaks into your car, does insurance cover it? As we mentioned, it likely won’t cover the items that were stolen. But your insurance may cover damage to your vehicle caused during the break-in, such as a smashed window.

How Your Home or Renters Policy Protects Items in Your Car

Homeowners and renters policies are designed to protect your personal property at home and away. While your car insurance may pick up the cost of a smashed window, turn to these other two policies to cover your stolen laptop, at least to a certain extent.

What Comprehensive Auto Insurance Covers

We often talk about car insurance as an umbrella term for several different types of coverage. One common kind of coverage is comprehensive insurance, which can help pay for damages not caused by a collision.

Protection for the Vehicle Itself

Comprehensive insurance covers damages to your car from theft, vandalism, accidents with animals, and other events such as fire or natural disaster. It’s not required and is typically an add-on to your insurance policies.

Comprehensive coverage usually has a deductible you’ll need to pay before it kicks in. For example, if you have a $500 deductible and $1,000 worth of damage, you’ll pay the first $500 and your insurer will step in and pay the rest.

How Comprehensive Differs from Personal Property Coverage

Comprehensive insurance covers your vehicle itself. It doesn’t cover moveable objects you may bring in and out of your car. That said, if there are items that you’ve attached to your car, such as a bike rack, for example, it’s possible they are covered under your comprehensive policy.

Personal property coverage, on the other hand, helps protect personal items against covered perils like fire or theft. It’s part of a homeowners or renters insurance policy.

Limits and Exclusions Related to the Vehicle

There are typically limits to your comprehensive coverage. For instance, it does not usually cover custom parts. And if you’ve installed a custom stereo and it is stolen, comprehensive insurance is unlikely to cover it.

It also does not cover damage done in a collision or anything related to normal wear and tear or mechanical breakdowns. And it may go without saying, but no car insurance will cover any damage that is intentional.

Homeowners and Renters Insurance Considerations

Homeowners and renters insurance both help protect your personal items. Homeowners will also protect the physical structure of a home, while renters insurance coverage does not protect the structure of the home occupied by the tenant.

Both types of insurance are subject to several limitations.

Recommended: Does Renters Insurance Cover Bike Theft?

Off-Premises Coverage for Your Personal Belongings

In general, renters insurance and homeowners insurance cover personal belongings losses that occur away from the home. But coverage is limited. Typically, there’s a maximum payout that’s capped at a certain percentage of your personal property coverage.

For example, if your personal property coverage is $50,000 and your off-premise coverage is capped at 10%, then items off-premise are covered up to $5,000.

Understanding Your Deductible and Policy Limits

As with comprehensive coverage, your homeowners and renters insurance will also likely have a deductible. You’ll need to pay this first before your insurance steps in.

It’s also important to understand the personal limit, or the amount up to which your policy will cover. Renters tend to be able to set their own personal limits based on the value of their belongings. For homeowners, personal property limits are often set as a percentage of the dwelling coverage. The personal property limits might be 50% of the dwelling coverage, for instance. So a homeowners policy with $300,000 worth of dwelling coverage would have personal property coverage of $150,000.

Recommended: A Comprehensive Guide to Homeowners Insurance

Tips for Filing a Claim Under Your Home or Renters Policy

Ideally, when you get a home or renters policy, you’ll create an inventory of your personal belongings. You can do this by making a room-by-room list of each item and its value. Document these items as best you can with photographs, videos, and receipts for valuables.

Filing a claim starts with documentation as well. Take photographs of all damaged areas, and don’t throw away damaged items until your claims adjuster has inspected them. If your items have been stolen or vandalized, file a police report and get a copy of it for your records. If you’re a renter, contact your landlord as well. They will be responsible for any damage done to the building.

Contact your insurance company and supply them with your policy number and contact information. They’ll assign an adjuster, who will review your policy, assess your claim, and offer a settlement. If you do not agree with the settlement, you can discuss it with your insurer.

Recommended: A Comprehensive Guide to Renters Insurance

The Takeaway

The theft of a personal item from your car can be distressing. But if someone breaks into your car, does car insurance cover it? Personal items stolen from your vehicle aren’t typically covered by your car insurance, but they may be covered under your homeowners and renters policies. To stay protected, learn how your policies work together to help ensure your valuables are covered.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

So, which policy covers items stolen from my car: auto or home/renters?

Homeowners and renters policies typically both cover personal items that are stolen from your car. Auto insurance policies do not.

Is it worth filing a claim for stolen personal items due to the deductible?

If the value of the item exceeds the deductible, then it may be worth filing a claim. However, if it is under the deductible, it may not be worth your trouble.

Are expensive items like laptops or phones fully covered?

Expensive items are usually covered after you’ve paid your deductible. For instance, if you have a $500 deductible and a stolen laptop is valued at $1,200, you’ll pay the $500 deductible first. Your insurance will step in and cover the remaining $700.

Does my comprehensive coverage pay to repair a broken window after a break-in?

Yes, your comprehensive coverage will typically pay to repair a broken window after a break-in. However you’ll likely have a deductible that you’ll need to pay first before it kicks in.

Will my rates go up after filing a claim for theft from my car?

Unfortunately, your rates may go up after you file a claim. That’s because rates are set based on risk, and filing a claim indicates that a risk of future claims is more likely.

photo credit: iStock/tuaindeed
Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-023

Will car insurance cover hail damage? Yes, assuming you have a certain type of coverage.

Whether your car was recently damaged by hail or you’re just thinking ahead, here’s what you need to know about what car insurance covers when it comes to hail.

Understanding Hail Damage and Your Auto Policy

Does car insurance cover hail damage? As we mentioned, it does. But the type of car insurance you have is important here. Liability and collision alone won’t cover you in this situation; you need comprehensive coverage.

Comprehensive coverage covers any damage done to a vehicle that is not the result of a collision. It typically covers things like:

•   Animal collisions, such as hitting a deer

•   Falling objects, such as rocks or tree limbs

•   Fire

•   Natural disasters, such as lightning, floods, hurricanes, and hail

•   Theft

•   Vandalism

What Is Hail Damage and How Does It Affect Your Vehicle?

Falling hail can leave golf ball-sized dents on your vehicle and can also easily crack your windshield. Depending on the severity of the storm and how exposed your vehicle was, falling hail can easily total a car. If that happens, your insurance company may decide to simply pay you for your car’s value rather than foot the bill for body repairs.

What Type of Car Insurance Covers Hail Damage?

As we discussed, comprehensive car insurance covers hail damage. It’s optional coverage, but purchasing it covers your vehicle from a variety of other events, including vandalism and natural disasters.

Exclusions and Limitations Regarding Hail Damage

Understanding whether insurance covers hail damage on a car often comes down to the fine print. No two insurance companies are exactly alike, so don’t assume you’re automatically covered for hail damage if you have comprehensive coverage.

Some insurance companies, for instance, have unusual exclusions for hail damage, so it’s a good idea to review your policy and note any exclusions. One example is “cosmetic only” language, which means hail damage may not be covered if your car functions normally otherwise.

If you have questions about your policy, call your insurance agent.

Recommended: Auto Insurance Resources: A Comprehensive Guide to Car Insurance

Filing a Hail Damage Claim

If a hail storm has left your car with dents and dings — and you have comprehensive coverage — you may decide to file a claim with your insurance company. Let’s take a look at the steps to follow.

Step-by-Step Process for Filing Your Claim

1. Document the damage. Once the storm has passed and it’s safe to be outside, your first order of business is to take extensive pictures and videos of the damage. Be as thorough as possible, and take both close-up and far away shots.

2. Contact your insurer. Next, get in touch with your insurance company, whether by logging into your auto insurance online portal, going through your carrier’s mobile app, or calling your insurer directly. Notify them of the type of damage your car has incurred and when and where it happened.

3. Submit the documentation. Upload the pictures and videos you took of the damage.

4. Await evaluation. An insurance adjuster will likely inspect your car and come up with an estimate for the repairs. Your insurance company will determine the payout based on that evaluation, which you can negotiate if necessary.

5. Receive payment and start the repairs. Once your claim is approved, you’ll receive a payment from your insurer. You’re free to take your car to a body shop of your choice to have the repairs done. Be sure to keep a record of the work for your files.

What Documentation Is Needed for a Successful Claim?

As we discussed, photos and videos are going to be your main source of documentation. So as we discussed, take a lot of pictures and videos from a variety of angles. If it’s safe to do so, try to take photos before the hail has melted.

Take note of the time and date your car received hail damage so your adjustor can confirm with local weather reports that hail was indeed spotted in your area. You may even want to take screen shots of any weather reports you find just in case.

Tips for Maximizing Your Claim Payout

To maximize your claim payout, try to take pictures of the hail damage while there is still hail on the ground. If you can, link to any weather reports, too. They’ll help verify the cause of your claim.

Repairing Hail Damage: What to Expect

Here’s what you can expect in the event your car is damaged by hail and your claim is approved.

Common Repair Methods

Repair shops have a variety of techniques to fix small dents from hail. One method they use is a heat gun, which involves heating up the area with the dent and then quickly applying dry ice. The rapid heating and cooling of the surface area will often cause the metal to pop back into its original position before the dent.

Another common method repair shops use is to simply apply a suction cup to each dent and gently pull upwards. However, because this method involves dealing with each dent individually, the process can take longer and increase the final bill.

What Happens If Hail Damage Totals Your Car?

Is hail covered by car insurance? Yes, provided the cost of repair doesn’t exceed your car’s worth. If hail damage totals your car, your insurance carrier may opt to pay you for your car’s worth minus your deductible.

For example, if your car is worth $5,000 and you have a $500 deductible, and the repair cost is estimated at $7,000, then your carrier will instead opt to pay you $4,500 instead.

Recommended: How to Switch Car Insurance

The Takeaway

Will car insurance cover hail damage? Yes, but you need comprehensive coverage. Just keep in mind that what each company covers in the event of hail damage may be different, so read your policy’s fine print. If it has unusual exclusions, it may be time to switch providers.

When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.

FAQ

Do I need comprehensive coverage for hail damage to be covered?

Yes, you need comprehensive coverage for hail damage to be covered. Simply having liability or collision is not enough.

Will filing a hail damage claim make my insurance rates go up?

Filing a hail damage claim may make your insurance rates go up, but it depends on your carrier and filing history. Typically, at-fault claims cause rates to go up more so than an event outside of your control.

If you feel the rise in your premium is too high, you may want to consider switching carriers. Switching car insurance providers isn’t difficult. The important thing is to compare prices and choose the provider that has all of the coverage options you need.

What if the cost to repair the hail damage is more than my car is worth?

If the cost to repair the hail damage is more than your car is worth, your insurance carrier will likely consider your car totaled and pay you for your car’s worth minus your deductible.

Do I have to pay a deductible for a hail damage claim?

Yes, you have to pay a deductible for a hail damage claim. If you don’t know what your deductible is, call your insurance company or check your policy.

Can I choose my own repair shop for hail damage?

Yes, you should be able to choose your own repair shop after your claim has been approved. However, your provider may have some recommendations, which may save you time and money.

Photo credit: iStock/Willowpix

Auto Insurance: Must have a valid driver’s license. Not available in all states.
Home and Renters Insurance: Insurance not available in all states.
Experian is a registered trademark of Experian.
SoFi Insurance Agency, LLC. (“”SoFi””) is compensated by Experian for each customer who purchases a policy through the SoFi-Experian partnership.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

SOPRO-Q325-028