Am I covered if my car is stolen?

It depends on the type of insurance coverage that you have. If you opted for state minimum requirements, then you only have coverage for liability, so the answer is most likely no.

On the other hand, if your car has comprehensive coverage, then the answer is most likely yes! New Jersey only requires drivers to have liability coverage. Liability covers you when your vehicle strikes someone or something.

Comprehensive covers you for anything that happens NOT as a result of an auto crash. This can be a tree falling on your vehicle, some kind of vandalism, or, yes, theft. In the event your car is stolen, make sure you immediately file a report with your local police department. This gives the police an opportunity to recover the vehicle and also provides documentation to your insurance company when you file a claim. When the claim is approved, you will receive payment for the actual cash value of your vehicle. Check the blue book value of the stolen vehicle in order to ensure the payout from the insurance company is sufficient to get you back in a vehicle of equal value. If for some reason you disagree with the payout amount, you are free to dispute the offer.

If your car is recovered by police, the insurance company will review the damages to the car, if any, and determine whether the car is worth fixing or a total loss. From here, the claims/payout process is no different from any other comprehensive damage claim! The insurance company will pay you the amount to either repair the car or replace it, less any deductibles. However, if your claim was already settled, you will be expected to pay back the insurer if you have not yet replaced the vehicle, and if you have, your recovered vehicle may simply become the property of the insurance company.

Look over your policy and ensure your vehicle is covered for comprehensive damages, that way if your car is stolen, not all is lost!