Before purchasing an auto theft policy in addition to your basic levels of insurance coverage, there are a few important factors to consider. Under some circumstances, an auto theft policy may not actually be necessary and this will be an important consideration in determining the best way to shape your overall insurance coverage.
The value of your vehicle should be a significant factor in establishing your suitability for auto theft insurance. To find the market value of your vehicle, the best place to look is in Kelley’s Blue Book. There is little point in spending an additional $40 each month for a vehicle with a value of $400. Indeed, the cost of auto theft insurance under these circumstances would actually cost more than the car itself!
If theft is a concern in the area you live in but your car isn’t worth insuring, it could be a good idea to put the monthly cost of an auto theft policy into a savings account. If your vehicle does end up being stolen, it wouldn’t take to long to accumulate enough money to purchase another vehicle of equal value.
Vehicles with a high market value should be insured to as high a level as possible and this ought to include auto theft insurance. Replacing a vehicle from the high end of the automotive market can be an extremely expensive affair and the safeguard of an auto theft policy will offer complete peace of mind.
Vehicle on Lease or Auto Payment
Any vehicle with outstanding loans or financial obligations against them should always be covered for auto theft. Vehicles in negative equity will also benefit from other insurance add-ons and GAP insurance is one of the better options available.