Does auto insurance cover a stolen stereo?

Why should you have stolen stereo car insurance? Although not as common as it once was, stereo theft is still a major concern. People will break into a car and steal the stereo to resell or pawn it for cash. They may even steal any valuables in the vehicle.

Fortunately, there are affordable car insurance options that serve as car audio insurance coverage that will protect you if your stereo is stolen. There are some limitations to this, so it’s a good idea to review your policy to ensure that your specific situation will be handled.

Start searching for car insurance before your stereo is stolen by entering your ZIP code in the FREE comparison tool. Look for affordable stolen stereo car insurance near you now.

Does car insurance cover a stolen stereo?

Theft and vandalism are covered by comprehensive coverage. This is separate from your collision coverage. Comprehensive coverage applies to acts of nature and other sorts of non-accidental damage.

Most full coverage auto insurance policies include comprehensive insurance by default, but it’s sold separately from collision coverage. Therefore, it’s possible to have one without the other.

You will need to refer to your policy to see whether or not comprehensive coverage is included. With comprehensive coverage, you can have coverage for your car radio.

Some car insurance companies will not list stolen stereo car insurance because car radio coverage is under comprehensive insurance.

For example, the Progressive insurance stolen car policy covers damages if your vehicle is stolen or if someone breaks into your car and takes your possessions.

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What coverage protects against partial theft?

Comprehensive coverage only applies to stereo systems that are factory installed in the vehicle. If you have an aftermarket stereo installed in the car, your insurance company may not cover aftermarket stereo installation costs or any aftermarket parts.

According to Investopedia, aftermarket parts are not made from the original manufacturer but serve as replacement parts.

If the device is portable, such as a Sirius radio, auto insurance will not cover its theft. Therefore, you would need to file a claim against a homeowners or renters insurance policy.

Some people choose to install very large or expensive sound systems in their vehicles. These systems may include speakers, subwoofers, and other specialized sound equipment.

If you purchase an amplifier, get amplifier insurance or a warranty to cover it from the stereo company. Or, contact your car insurance company to see if your amplifier is covered in your auto insurance policy.

Car Insurance Covers Permanently Installed Equipment

Although these systems are permanently installed, they cannot be covered by comprehensive insurance because they are aftermarket additions to the vehicle. Instead, the insured can purchase a separate sound system policy.

This policy will require you to provide an appraisal of the sound system’s worth. If the system is stolen or damaged, the insurance will pay according to the system’s value minus any applicable deductibles.

Not all policies offer this coverage, so be sure to ask your insurer whether a sound system can be covered before installing one.

Car Stereo Theft Statistics

The Federal Bureau of Investigations (FBI) doesn’t list car stereo thefts, but they list the number of property crimes and motor vehicles stolen. It’s a long list for each state, so we’ve calculated the national average and the total number of property crimes and motor vehicle thefts for you.

U.S. National Property Crime and Motor Vehicle Theft Statistics

Out of the 4.1 million property crimes, about 450,000 involved motor vehicle theft in 2018.

Car insurance companies use these statistics to determine comprehensive car insurance rates.

Let’s take a look at average car insurance rates by coverage type in the U.S.

National Average Car Insurance Rates by Coverage Type

To combat increasing theft statistics, car insurance policies are continuously updated to help customers and to raise rates so the insurance companies make a profit.

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Filing a Claim for a Stolen Stereo

Before a car insurance company can issue a stolen car insurance payout, they have to investigate your claim. A stolen car insurance claim investigation can take several weeks. It’s even more complicated when you’re financing your car.

Whether you’re submitting a claim against your comprehensive coverage or a specific sound system policy, the request should be filed directly with the insurance company’s claims department.

You can do this at the agent’s office, over the phone, or even online. The process will take about 15 minutes to complete.

The insurance company will ask:

• Where the vehicle was parked
• How the thief got into the car
• If anything else was damaged

Depending on the situation, the vehicle may need to be inspected for damage by the insurance company.

Stolen Stereo Car Insurance Deductible

Some insurers will request that you submit a receipt for the purchase and installation of a new stereo and reimburse accordingly.

Bear in mind that any comprehensive deductible that you have will apply to the loss. Depending on the stereo and installation cost, it may not be worthwhile to file the claim.

For example, if a new stereo costs $300 to install and the deductible is $500, there is no reason to file a claim. For this reason, it may be a good idea to get an estimate on the replacement before submitting the claim.

Other Damage Car Insurance Covers if Your Stereo is Stolen

The stolen stereo may not be the only damage to the vehicle. However, other damage may not be immediately apparent.

For example, there may be damage to the door locks from where the thief broke into the car or the vehicle may have sustained electrical damage when the thief removed the stereo.

This can increase the overall cost of the repairs and make it worthwhile to file a claim. Depending on how your policy is written, this additional damage may not be covered under sound system coverage.

This means that you may end up owing two separate deductibles if the vehicle sustains damage and you have a stolen sound system.

Even if you choose not to submit a claim at first, be sure to keep your receipts for any work that you have done on the vehicle. You can offer them for reimbursement if the final repair ends up costing more than the deductible.

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Case Studies: Car Insurance Coverage for Stolen Stereos

Case Study 1: Comprehensive Coverage and Stolen Stereo

Mr. Johnson recently installed an aftermarket stereo system in his car. Unfortunately, his car was broken into, and the stereo was stolen. He had comprehensive coverage as part of his car insurance policy. He filed a claim with his insurance company, providing all the necessary information and documentation.

The insurance company verified his claim and reimbursed him for the stolen stereo, minus the applicable deductible. This case demonstrates how comprehensive coverage can protect against the theft of an aftermarket stereo.

Case Study 2: No Coverage for Aftermarket Stereo

Ms. Thompson had an aftermarket stereo system installed in her car without informing her insurance company. Her car was later broken into, and the stereo was stolen. She filed a claim with her insurance provider, but they informed her that the aftermarket stereo was not covered under her policy.

She was responsible for the full cost of replacing the stolen stereo. This case highlights the importance of checking with your insurance company regarding coverage for aftermarket additions to your vehicle.

Case Study 3: Separate Sound System Policy

Mr. Rodriguez had a high-end sound system installed in his car. He purchased a separate sound system policy from his insurance company to cover the system. When his car was broken into and the sound system was stolen, he filed a claim with his insurer.

He provided an appraisal of the sound system’s value and received compensation based on that value, minus any applicable deductibles. This case demonstrates how a separate sound system policy can provide coverage specifically for high-value aftermarket sound systems.

Stolen Stereo Car Insurance: Bottom Line

Car insurance claims can be complicated, and multiple variables may be involved in any specific situation. If you’re not sure how your coverage will apply to the scenario you’re dealing with, your best bet is to contact your insurance company directly to ask.

The agent or customer service representative will be happy to discuss your policy with you and answer any questions you may have about a specific claims situation.

Want to compare insurance companies to find the best rates and policies for your vehicle and sound systems? Just enter your ZIP code into our free comparison tool to get started.

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