Understanding Car Theft In Canada: Does Insurance Cover This?

September 21, 2022

Responsible car owners habitually secure their vehicles through the right insurance policy to ensure optimal coverage.

With instances of automobile theft on the rise, it’s natural to ask, “Does insurance cover carjacking?”.

Have you taken adequate measures to insure your car against theft or carjacking? Along with vandalism and physical damage to your car, you cannot afford to overlook this peril. In 2021, Canada witnessed more than 80,000 auto thefts. Naturally, this should worry car owners, and you might be pondering whether your insurance coverage secures your vehicle.

Well, the answer to the question, “Does insurance cover carjacking?”, largely depends on the type of car insurance coverage your purchase.

Insurance experts like Surex recommend the most affordable policies to automobile owners that cover carjacking. Whether you own an SUV, truck, or car, having the right coverage makes the difference.

Is carjacking covered by insurance?

The short answer to the common question, “Is carjacking covered by insurance” is yes.

Now, car owners need to be tactical with the kind of coverage they choose. Not all automobile insurance policies provide this privilege. So, before you decide on an insurance policy, make sure to consult the experts at Surex. Typically, you need an all-peril coverage, comprehensive coverage, or an optional specified peril policy to secure your vehicle against carjacking.

Whether or not you should get a policy that secures your car against theft largely depends on the risk profile of the vehicle. For instance, some models are more susceptible to theft. This includes Dodge RAMs, Toyota Highlanders, Lexus RX 350s, Honda CR-Vs, and Honda Civics, among others. Such cars can easily blend into the traffic and carry a low profile, making them attractive targets.

The chances of carjacking also depend on your locality. Of late, urban zones across Canada have reported several instances of carjacking. Altogether, it makes sense to secure your car by having carjacking insurance in place. Why would any owner risk the vehicle for the sake of saving a few hundred dollars of premium each month?

What does carjacking insurance cover?

Remember, most insurers do not cover automobile theft or carjacking in their primary insurance packages. Therefore, it makes sense to get optional policies like comprehensive insurance. Typically, carjacking insurance would provide you with the following benefits:

Replacement of the car that might be stolen
Replacement of damaged or stolen automobile parts
Repair damages resulting from break-in or theft

Different types of insurance policies covering car theft

In addition to the basic policy, car owners can choose from any of the following policies to secure their vehicles against carjacking.

All perils policy: Besides protecting the car against theft, this policy secures the owner against car loss in case someone at your home takes the car.
Comprehensive policy: With a comprehensive policy, you would have the privilege of replacing or repairing your car in case any unforeseen incident occurs.
Gap insurance: A gap insurance policy proves to be beneficial in case of total loss claims, like carjacking. The gap is the difference between the value you owe and the worth of your vehicle.
Specified perils: You may also include carjacking protection as a part of specified perils in these policies. This way, you would remain secure even if you don’t go for a comprehensive policy.

What doesn’t your car insurance policy cover during a theft?

Although insurers cover your car in case of a carjacking incident, the policy doesn’t cover your belongings inside your car. So, if you accidentally leave something inside the vehicle and it gets stolen, you will get compensation only for the vehicle. However, some insurers have come up with the provision of covering personal property in car insurance policies. So, it would be wise to scan through the policy’s benefits before purchasing one. Probably, your home insurance policy would already be covering these belongings.

Now, you might be worried about the items that habitually remain inside the car. These include stereo systems, roof racks, tires, and related accessories. The policy would cover these items since they remain attached to the vehicle. The policy would compensate for the actual cash value of these items. Therefore, this would not be the printed price of the item but the value based on the age and current condition of the items.

However, suppose you purchase some apparel from the mall and leave it in the car, and the latter gets stolen. In these cases, you won’t get any compensation for the apparel.

Tips to prevent car thefts

Even after investing in automobile insurance, you would try not to let someone just steal your car. After all, carjacking is preventable. Mistakes on the part of the owner or driver lead to a majority of these thefts. Maybe you are habituated to keeping the keys in the ignition or the doors unlocked. With these guidelines, you would have reduced chances of losing your car.

Make a habit of locking all your car doors before you leave them.
Don’t leave any spare key around the car or inside where someone might find it.
Don’t leave the keys in the ignition unless someone is inside the car.
To prevent vandalism and theft, park it in a closed enclosure or garage.
When you park your car, make sure to roll the windows up. Before leaving your car, close the sunroof and windows.
Try to park the vehicle in places with heavy traffic and proper lights, particularly at night.
It would be wise to get sophisticated anti-theft devices. This would also cut your insurance premium to some extent.

Endnote

Well, you have got your answer to the question, “Does insurance cover carjacking”. We have also discussed the types of insurance policies you should have to avail of this privilege.

Now that you are planning to purchase the right kind of policy, it would be wise to consult the insurance experts at Surex. With professional consultation, you can be on the economic end while you try to secure your vehicle. Besides, the experts can help you obtain the best quotes and brief you about the respective coverages of the policies.