What Type of Auto Insurance Coverage Covers Theft

There’s nothing like the sinking feeling for a driver when their car is not where they expect. Fortunately, for most, it’s just a matter of remembering they parked somewhere different. There are cases, however, when vehicles disappear not through forgetfulness but through malicious action.

Improvements to anti-theft systems is a reasonable deterrent that helps reduce the incidence of car theft. However, it does still happen. In Canada, every vehicle on the road must have insurance, in every territory and province, but the required coverage – which varies by province – doesn’t include comprehensive insurance, the part of a policy that protects against theft.

Comprehensive Auto Insurance – What is it?

When looking at auto insurance coverage and its various components, collision and comprehensive insurance are the two most expensive options. Collision insurance basically covers incidents that occur when you’re driving, and comprehensive coverage handles things that happen when you’re not. Since, when your car is stolen, you’re not driving, comprehensive insurance applies. Other risks, or perils as they’re called in the insurance industry, include fire, vandalism and extreme weather damage.

Every province and territory has required minimums of insurance that vehicles must carry for legal operation. These minimum policies do not include comprehensive and collision coverage. Called riders or endorsements, these sections are optional in most cases. Therefore, a driver purchasing minimum coverage to register and license their vehicle won’t be protected.

When it is in place, comprehensive insurance is subject to a deductible amount. Simply put, this is the owner’s share of the cost of fixing or replacing the stolen vehicle. When purchasing coverage, the car owner decides how much this share will be. For those able to handle more of the financial load, they can maintain a high deductible, which keeps premiums lower.

On the flip side, a driver without the savings to cover a major expense resulting from theft may choose to keep a small deductible. This puts more load on the insurance company, so premiums for the comprehensive endorsement are higher, but there’s a smaller cost after an incident.

Auto Theft in Canada

Since the 1990s, motor vehicle theft is on the decline in Canada. It’s also a crime with one of the highest rates of attempts, at 14 percent, versus 2 percent for all other attempted crimes under the Criminal Code.

Despite the decline, efforts by both the government and insurance industry continue to further lower the rate of theft. Many insurance companies now offer discounts for the installation of approved anti-theft devices and factory installed theft protection improves. The increasing use of electronics in vehicles opens new avenues for theft, but each is addressed as the criminal element brings it to light.

Finding the right policy to protect you comfortably is key to effective insurance. Seeing how different options affect pricing helps your planning, and that’s easy to accomplish using Quote Finder’s car insurance calculator. Choose it from the drop-down menu at the top left of the page and follow the instructions, using your car insurance information. In less than 20 minutes, you’ll receive up to 10 low-cost quotes. It’s the easiest way to find the best policies.

2018-09-15T12:58:17+00:00