Auto Insurance: Protecting Your Vehicle from Theft and Damage

When it comes to your vehicle, protecting it from theft and damage is of utmost importance. Auto theft continues to be a risk, costing billions of dollars annually in Canada. To safeguard your vehicle, it’s essential to have comprehensive auto insurance coverage.

Auto theft can occur in two primary forms: break-ins and vehicle theft. If you have comprehensive coverage for your car, your policy covers theft and damage to your vehicle, should it be stolen. Let’s take a closer look at what this coverage entails:

Understanding Break-Ins and Damage Coverage

Break-ins can result in various types of damage, including broken door locks, smashed windows, and a broken ignition system. Fortunately, comprehensive coverage generally includes protection for these damages, subject to the deductible you choose if you’ve purchased an auto insurance policy. For example, if you have a $500 deductible and a break-in causes $2,000 in damage to your vehicle, your insurer may cover $1,500 of the repair costs.

However, it’s important to note that auto insurance typically does not cover the cost of items stolen from your vehicle. Valuables such as laptops, phones, and cameras can be protected through personal property coverage offered by your home or renter’s insurance policy. Ensure you have the appropriate coverage to safeguard your belongings in case of theft.

Dealing with Vehicle Theft

In the unfortunate event of vehicle theft, comprehensive coverage plays a vital role. If your stolen vehicle is recovered, your comprehensive insurance will cover the damage caused by the thieves. However, it’s essential to understand that salvaged cars can sometimes be deemed a total loss, meaning the cost of repairing the damage is close to or exceeds the vehicle’s value. The insurer will cover the vehicle’s insured value (either Actual Cash Value or Replacement Cost depending on what is listed on your policy Coverpage) minus your deductible. If the stolen vehicle is not recovered, it is considered a total loss, and the insurer will cover the insured value (ACV or RC) of the car, again minus your deductible.

Rental Car Reimbursement Coverage

In the unfortunate event of a break-in or stolen vehicle, you may need an alternative mode of transportation while your car is being repaired. Rental car reimbursement coverage can be valuable to your auto insurance policy. This coverage can reimburse the cost of renting a vehicle while yours is undergoing repairs as long as a covered loss, such as a break-in, cause the damage.

It’s essential to be aware of the coverage limits for rental reimbursement. Typically, there is a daily coverage limit and a total coverage limit per claim. Any charges above these limits will have to be paid out of pocket. To ensure adequate protection, consider working with your broker to adjust these coverage limits before you have a claim.

Real-Life Examples: How Comprehensive Auto Insurance Protects

To illustrate the importance of a comprehensive auto insurance policy, let’s explore some real-life examples where this coverage proved invaluable.

Case Study 1: Break-In and Damage Coverage

Sarah parked her car outside a shopping mall and returned to find her window smashed and stolen belongings. She called the police to report the incident. Using the police number given, she called SG to file her claim. Once investigations and an analysis of the damage was surveyed, SGI determined that her vehicle was repairable. While she couldn’t recover the stolen items using her auto insurance, Sarah was relieved only to pay $50 to the auto repair shop to fix the damage. This was thanks to her lower comprehensive deductible on her policy. While she waited for the repairs, she decided to rent a vehicle so the accident wouldn’t impede her lifestyle and she could continue doing the activities she was used to. She called her adjuster to verify that her loss of use coverage that was on her policy would respond to this claim. Her adjuster advised the coverage would respond and suggested that if the rental car company did use direct billing (could submit the invoice on her behalf) to ensure she saved her receipt to give him for reimbursement. She received her bill of $3,100 from the rental car company after returning the rental once her vehicle was fixed. Upon submitting the receipt to her auto adjuster, she could have up $1,500 reimbursed for the expense, as that was the limit set on her policy.

Case Study 2: Vehicle Theft and Total Loss

John woke up one morning to discover his car was missing from the driveway. He immediately reported the theft to the police and contacted his insurance company. Although his stolen vehicle was not recovered, John had comprehensive auto insurance that covered the insured value of his car minus his deductible. As his truck was subject to ACV, his adjuster issued a cheque for the value of his vehicle minus the $100 comprehensive deductible he had set on his auto policy. Unfortunately, John did not have a loss of use coverage; any rental car he decided to rent would be deemed an out-of-pocket expense.

Protecting your vehicle goes beyond having the proper coverage. It’s crucial to regularly review your auto insurance policy with your agent or broker to ensure it adequately meets your needs. Auto insurance policies are often interconnected with other types of coverage, such as home or business policies. A single loss can trigger different coverages on your policy or even bring a separate policy into play.

By conducting a policy review every 12 to 18 months, you can identify potential coverage gaps and make necessary adjustments to your coverage and deductibles. Don’t wait until a claim occurs to discover that you’re underinsured. Stay proactive and contact your broker today for a comprehensive review of your auto insurance coverage.

Additional Information: Protect your vehicle with Saskatchewan Personal Auto Insurance. Basic auto insurance coverage may not be sufficient when faced with the costs of an accident. Some exclusions with basic vehicle registration are family security, unlicensed vehicle storage coverage, damage to non-owned vehicles, loss of use, replacement value, etc. With our various insurance company options, from SGI Canada to Sandbox Mutual (SMI) to Portage Mutual, we’ll help you find the best rate for your coverage so that you can have peace of mind knowing that your vehicle is protected. Save money while protecting what matters most.

Disclaimer: This article is for informational purposes only and should not be considered legal or financial advice. Please consult with a professional insurance agent or broker for personalized guidance.

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