Car insurance provides various levels of protection, but many drivers are unsure whether liability insurance covers car theft. If your vehicle is stolen, will your auto insurance company compensate you for the loss? Understanding the specifics of your Michigan car insurance policy can help you avoid unexpected financial burdens.

What is Liability Insurance?

Liability insurance is the most basic level of auto insurance required in Michigan and most other states. It covers damages and injuries you cause to others in an accident but does not protect your own vehicle.

There are two primary components of liability insurance:

• Bodily Injury Liability: Covers medical expenses, lost wages, and legal fees if you are responsible for injuring another person in an accident.

• Property Damage Liability: Pays for damage to another person’s vehicle or property if you are at fault.

Liability insurance does not cover theft or damage to your own vehicle, meaning that if your car is stolen, you won’t receive any compensation from your insurer under this type of coverage.

What Type of Insurance Covers Car Theft?

To protect against car theft, you need comprehensive coverage, which is an optional addition to your policy. Comprehensive coverage includes:

• Theft

• Vandalism

• Fire

• Natural disasters (hail, floods, etc.)

• Animal-related damage

If your vehicle is stolen and you have comprehensive coverage, your auto insurance company will reimburse you for the car’s value minus your deductible.

What to Do If Your Car Is Stolen

If your car is stolen, take these steps to improve your chances of recovery and compensation:

1. Report the Theft to the Police: Provide details like your VIN, license plate, make, model, and color.

2. Notify Your Insurance Company: If you have comprehensive coverage, file a claim with your insurance company near Grand Rapids as soon as possible.

3. Contact Your Lender (If Applicable): If you have an auto loan, inform your lender about the theft.

4. Monitor for Unauthorized Use: Watch for notifications from toll agencies or authorities about your vehicle’s whereabouts.

Does Michigan Car Insurance Require Comprehensive Coverage?

Michigan law mandates liability coverage, but comprehensive coverage is optional. However, if you lease or finance a car, your lender may require you to carry comprehensive and collision coverage. If you only have liability insurance, your stolen car won’t be covered.

Finding Affordable Comprehensive Coverage

If you’re looking for cheap car insurance, consider these tips to save on comprehensive coverage:

• Compare Quotes: Get multiple quotes from insurance companies near Grand Rapids to find the best rate.

• Bundle Policies: Many insurers offer discounts for bundling auto and home insurance.

• Increase Your Deductible: A higher deductible reduces your premium but means you’ll pay more out of pocket if you file a claim.

• Maintain a Good Driving Record: Safe drivers often qualify for lower rates.

Conclusion

Liability insurance does not cover car theft. To protect against theft, you need comprehensive coverage, which reimburses you for a stolen vehicle’s value. If you’re searching for auto insurance near Grand Rapids, compare options from local insurers to find cheap car insurance that includes the coverage you need. Make sure to choose the right policy to keep your vehicle protected against unexpected losses.