Car Theft Insurance and Coverage

With a recent report showing 47,803 vehicles were stolen in Australia during just one year, it makes sense to protect your car. You can do this in two ways. Firstly, through anti-theft measures. Secondly, by taking out car theft insurance to help recover financially. Theft cover in car insurance is a complex topic. Many people aren’t sure what their policy covers in this regard. Or even if it covers theft at all.

As for your car being stolen, most people think “it won’t happen to me”. However, chances are you’ll experience car-related theft in your lifetime, either from inside the car or the entire vehicle. 

Theft-related car insurance coverage is an important consideration when you’re wondering how to protect yourself from the financial damage this can cause. We won’t go into car theft prevention measures here. For that, you can read our simple daily habits to prevent car theft. What we will do is shed some light on when your insurance does and doesn’t cover you for theft.

What does car theft insurance cover?

There are three main types of car insurance cover. Unfortunately, not all will cover you for theft. When it comes to theft and any damage related to it, here’s what you’re covered for under PD Insurance (at the time of writing)…

Comprehensive car insurance:

1. loss or damage to your vehicle, up to the insured value, as a result of the theft or due to an accident
2. hire car after theft (up to 14 days)
3. new vehicle after total loss (if the loss/theft occurs within first 12 months of the original car registration)
4. emergency repairs that enable your vehicle to be driven home after it’s suffered loss or damage (up to a maximum dollar amount)
5. windscreen repair
6. loss or damage to your vehicle as a result of a collision with another vehicle where the owner or driver of that other vehicle was at fault and is not insured for your damage (up to a maximum dollar amount)
7. towing your vehicle to the nearest repairer or place of safety and storing your vehicle from when you report the claim to us until we settle the claim (if your vehicle can’t be safely driven)
8. And an important one for pet parents: If your pet is in your car during an incident, gets injured and needs vet care, we’ll refund a portion of their vet fees! Hopefully you have pet insurance anyway

Third party fire and theft:

1. loss or damage to your vehicle, up to the insured value, as a result of the theft or due to a fire
2. hire car after theft (up to 14 days)
3. loss or damage to your vehicle as a result of a collision with another vehicle where the owner or driver of that other vehicle was at fault and is not insured for your damage (up to a maximum dollar amount of $5,000 for any one accident)
4. towing your vehicle to the nearest repairer or place of safety and storing your vehicle from when you report the claim to us until we settle the claim (if your vehicle can’t be safely driven)

Third party property damage:

Third party property damage insurance does not cover you for theft of your car at all.

If you’d like further information about these insurance types, please visit the car insurance PDS area of our website. You can also read our articles on third party insurance and comprehensive vs compulsory third party car insurance.

Does insurance cover items stolen inside my car?

Typically, contents stolen from the car won’t be covered by your car theft insurance. That means phones, laptops, sports equipment and more are at risk. If they’re stolen out of your car, most insurers won’t reimburse you. Yep, even if you have a comprehensive plan. Make sure you take your precious items with you instead of leaving them in the car.

Having said that, some insurance providers do offer vehicle contents insurance, but it’s likely at an extra cost. Car theft insurance coverage varies from company to company. Do your research and you’ll discover what’s best for you.

If the unthinkable happens and your car is definitely stolen, don’t panic. We’ve covered what to do next in this article. Of course, taking out car theft insurance goes a long way to helping you get back on your feet if your car is stolen. Why not get a quote for comprehensive car insurance now?