Many drivers wonder if liability insurance covers car theft. The answer is no. Liability insurance is designed to cover damage or injuries you cause to other people, not your own vehicle.If your car is stolen, damaged by vandalism, or destroyed by natural events like floods or hail, liability insurance won’t help.
To protect your car against these risks, you need comprehensive insurance, a policy that covers non-collision-related incidents. At Viva Insurance Agency, we help drivers understand their insurance options so they can make informed decisions, save money, and stay fully protected on the road. In this guide, we’ll explain the difference between liability and comprehensive insurance, how theft claims work, and how to choose the right coverage for your needs.
What is Liability Insurance
Liability insurance is the most basic type of car insurance and it is required by law in most states. It protects you if you cause an accident that injures someone else or damages their property. Liability insurance usually covers two main things
- Bodily injury liability
This pays for medical costs if someone is hurt in an accident that is your fault. - Property damage liability
This pays for repair or replacement of another person’s car or property that you damage.
Liability insurance does not cover your own car. If your vehicle is stolen, damaged by fire, vandalism, or natural disasters like floods or hail, liability insurance will not provide any compensation. This type of policy only protects other people and their property when you’re at fault in an accident. To safeguard your own car from unexpected events or theft, you’ll need to add comprehensive coverage to your policy. It ensures that you’re financially protected no matter what happens.
What is Comprehensive Insurance
Comprehensive insurance is designed to protect your vehicle from a wide range of damages that are not caused by a collision with another car. Unlike liability or collision coverage, which primarily deal with accidents, comprehensive coverage focuses on risks that can occur in everyday life or due to unforeseen events. Here’s a more detailed look at what it typically covers:
- Car Theft.
- Vandalism like broken windows or scratches
- Natural events such as hail, floods, or fallen trees
- Fire or other types of accidental damage
By carrying, Viva comprehensive Insurance’s, car owners gain peace of mind knowing their vehicle is protected against a wide range of non-collision-related risks. With Viva Insurance, you’re covered in the event of theft, vandalism, natural disasters, or unexpected accidents, helping to significantly reduce the financial burden of repairs or replacement.
How a Theft Claim Works
Here is how a theft claim works with comprehensive insurance through Viva Insurance Agency
- Report the theft to your insurance company.
- The insurance company investigates and finds the actual cash value of your car.
- You receive payment for the car’s value minus your deductible.
- If the stolen car is found but damaged, the insurance will cover repairs up to your policy limits.
This process helps you recover from theft or damage quickly and get back on the road.
Liability Insurance and Comprehensive Insurance
Liability insurance and comprehensive insurance are very different. Liability insurance protects other people, while comprehensive insurance protects your own car. Liability insurance is important because it keeps you legally allowed to drive and protects you from paying a lot of money if you cause an accident. Comprehensive insurance is important because it protects your own vehicle from theft, fire, or natural events.
Choosing the Right Coverage
When choosing insurance, consider
- The value of your car. New or financed cars need full protection.
- Where you live. Areas with high theft or natural disasters need comprehensive coverage.
- Your budget. Liability insurance is cheaper, but comprehensive can save you money in case of theft or damage.
- Loan or lease requirements. Some lenders require comprehensive insurance.
Viva Insurance Agency helps you choose the coverage that gives you the best protection at the right cost.Our experienced agents take the time to understand your needs, driving habits, and budget to recommend the most suitable options. We believe in providing honest guidance, transparent pricing, and ongoing support so you always feel confident about your insurance decisions.
Conclusion
Liability insurance does not cover car theft. It is important to have liability insurance to protect others and stay legal. To protect your own vehicle, you need comprehensive insurance.
At Viva Insurance Agency, we help drivers choose the right coverage for peace of mind and full protection. Whether you need only liability insurance or a combination with comprehensive and gap coverage, our team will guide you every step of the way. Protect your car today and drive with confidence.
Contact Viva Insurance Agency to learn about the best auto insurance options for your needs.
FAQs
1. What is liability insurance?
Answer: Liability insurance is a type of coverage that protects you (or your business) from financial loss if you’re held legally responsible for causing injury to another person or damage to their property.
It typically covers costs such as legal defence, settlements or judgments against you.
2. What does liability insurance cover?
Answer: The specific coverage depends on the type of liability policy, but generally liability insurance may cover:
- Bodily injury to a third party (you caused someone to get hurt)
- Damage to a third party’s property (you damaged someone else’s property)
- Legal and defence costs arising from claims against you.
Some liability policies also cover “personal and advertising injury” (e.g., libel, slander) or product liability for businesses.
3. Do I need liability insurance?
Answer: Yes, it’s highly recommended (and sometimes mandatory) because liability risks can lead to large expenses. For example, if someone is injured on your premises or you damage someone else’s property, you could face a lawsuit and large costs. For businesses, many contracts or clients will require proof of liability insurance before doing business.
4. How much liability insurance do I need?
Answer: This depends on your situation. what type of activity you do, how much risk you’re exposed to, your jurisdiction, your assets, etc. For example:
- For a small business, standard general liability limits like $1 million per occurrence / $2 million aggregate are common starting points.
- If you’re in a higher‑risk business (construction, professional services, large premises) you may need much higher limits or additional liability cover.
5. What is not covered by liability insurance?
Answer: Liability insurance won’t cover everything. Some common exclusions are:
Some special liability exposures, like pollution liability or professional errors (these require separate or special policies).
Your own property damage (you damaged your own stuff), it’s about third‑party liability.
Intentional wrongdoing or criminal acts (if you purposely cause harm) many policies exclude willful or illegal actions.
