Does homeowners insurance cover theft of your car if it was taken out of your driveway?


To put it simply, the homeowners insurance policy will not cover the car, period. The policy will specify that any vehicle that is intended for road use and holds a motor vehicle license is not covered.

Regardless of whether the car was stolen right off your driveway or if the car burns down as it was parked inside the garage of the burning house, the homeowners insurance policy does not have coverage and as such will not pay for any loss or damage.

What will cover the stolen car would be your auto insurance, but the coverage should be a comprehensive policy. The same goes for other motor craft such as boats, golf carts and ATVs.

However, you can try to file with your homeowners insurance in a bid to recover the contents of your car, which is covered by your homeowners insurance as part of your personal property coverage. To do so, make a list of the contents of the car.

Now, about your stolen car, you should do the following once you know about the theft:

  • Notify the police. File a police report regarding the theft. You will need to show this report to the auto insurance company when you file a claim.
  • Consider paying your premiums continuously. Although you are not obligated to pay for something you don't have, you should think of the possibility that the car will be recovered. When this happens, you will want to make sure that your payments are up-to-date.
  • You will need to continue paying for the car payments until you are paid by the insurance company. You should also notify the bank that provided the car loan about the theft. Actually, if you still owe money on the car, the check may be paid in the name of the bank and you as the borrower. You will be requested to sign an endorsement of the check to the bank. The bank will deduct the outstanding balance and give the rest of the money to you.
  • File the claim with the auto insurance company.
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