The holiday season is known for its sparkle, spirit, and time of giving. But in the midst of the shopping hustle, festive gatherings, and packed parking lots, the possibility of theft also increases.

Many shoppers bring gifts along as they dash from store to store or leave wrapped presents in the car while running errands. It raises a serious question: if someone breaks into your car and steals gifts, does your auto insurance cover the loss?

In this guide, we’ll unpack how auto insurance typically handles theft, especially when it comes to belongings left inside your car. We’ll also explore what coverage options might help in these situations, as well as practical tips to protect your purchases.

Auto insurance & theft coverage

In general, comprehensive coverage in a personal auto insurance policy deals with theft, but that concerns theft of your vehicle, not personal property stored inside.

Comprehensive insurance is the part of your auto policy that may cover your car in non-collision-related events, including theft, fire, vandalism, and certain weather damages. For example, if someone breaks into your car and causes damage, such as breaking a window or tampering with the locks, comprehensive coverage would help pay for repairs. But while this coverage may handle car repairs, it generally doesn’t cover personal items stolen from inside the car. For that you need to look to homeowners, renters, or condo owners insurance.

Personal property & homeowners insurance

Most home insurance covers some level or personal property theft, even if the theft happens outside your home. Here’s how it generally works:

Off-Premises Coverage

Most homeowners and renters policies include “off-premises” coverage. This means your belongings are covered outside your home—like in a car, on vacation, or even in a storage unit. So if someone steals gifts from your car, you can file a claim under this coverage.

Deductibles & Coverage Limits

Keep in mind that personal property coverage comes with a deductible, the amount you’re responsible for paying before insurance kicks in. If your deductible is higher than the value of the stolen items, it might not make sense to file a claim. Policies also limit coverage for certain types of personal property, so high-value items like jewelry might need to be listed specifically on the policy to receive protection.

Coverage scenarios: What to expect

To understand if your homeowners or renters insurance would cover stolen gifts, here’s a look at some common scenarios and how coverage could apply.

Scenario A

You leave a bag of wrapped gifts in your back seat while running a few quick errands. You return to find a car window smashed and the gifts gone. In this case, your auto insurance’s comprehensive coverage would cover the cost of repairing the window, while homeowners or renters insurance would cover the stolen gifts minus your deductible.

Scenario B

Your trunk contains a laptop and a few holiday gifts that were bought for family. After a long day of shopping, you discover your car has been broken into and everything in the trunk is missing. Here, your homeowners or renters policy could help cover the laptop and gifts, but keep in mind that specific coverage limits may apply for electronics or valuable items. Auto insurance would again cover any damage to the vehicle itself.

Scenario C

You’re parked in a relative’s driveway with holiday purchases in your vehicle. If your gifts are stolen while visiting, your homeowners or renters insurance may still apply. Coverage isn’t limited to specific locations; it’s designed to protect your belongings, whether they’re at home, in a car, or with you on the go.

4 steps to take if your gifts are stolen

If you find yourself a victim of holiday theft, taking a few key steps can help ensure a smooth claims process and maximize the chance of reimbursement:

1. File a police report: Reporting the incident to the police is usually required to file a claim. A police report can serve as documentation for your insurance company and potentially speed up the process.
2. Document what was stolen: Make a list of the stolen items, including purchase receipts or credit card statements if available. The more details you can provide, the better. Insurers may require proof of ownership.
3. Contact your insurance company: Reach out to your auto insurer to report any vehicle damage and to your homeowners or renters insurance company to discuss stolen belongings. They can walk you through coverage specifics and guide you on next steps.
4. Consider the deductible: Before filing a claim, weigh the value of the stolen items against your deductible. For instance, if your deductible is $500 and the gifts were worth $400, filing a claim might not be worth it.

Preventive tips for protecting your holiday purchases

While insurance can help replace lost gifts, taking precautions to avoid theft in the first place is always the best strategy. Here are a few ways to keep your holiday purchases safe:

• Keep gifts out of sight: Store items in your trunk or cover them with a blanket to avoid attracting attention.
• Park in well-lit areas: Thieves are less likely to target cars parked in brightly lit, high-traffic areas.
• Don’t leave valuables in your car overnight: If you have the option, bring items indoors instead of leaving them in your car.
• Lock your doors and set the alarm: Even a quick stop warrants locking your car and using any built-in alarm system.
• Be cautious on social media: Sharing your shopping trips or showing off holiday hauls could unintentionally alert thieves to valuable items in your vehicle.

Auto insurance can handle the damage caused to your car by thieves if you have purchased comprehensive coverage, but to replace stolen gifts, you may need the support of homeowners or renters insurance. Reviewing your policy details and understanding your deductibles and limits ahead of the holidays can help you feel prepared and avoid unwelcome surprises.

For help finding the best homeowners insurance coverage for you, request a quote here.