Does Renters Insurance Cover Your Car?


There are so many different insurance policies that you can get, not because of choice, but because of necessity. There’s no single insurance policy that would cover everything; your house, health, vehicle, and other miscellaneous things. You need separate insurance policies for different things. For example, there are auto insurance policies such as liability coverage, collision damage waiver, etc for your car, while renters insurance for all your personal belongings that you keep inside your home. 

But if you think of it, your car is also one of your personal belongings that are expensive, and very likely to get stolen from your garage. If not stolen, it might get damaged. Does renters insurance cover any damages to your car? Or will your renter’s insurance reimburse you if your car is stolen from your garage? 

This article will describe everything you need to know about renters insurance and its coverage for your vehicle. First, let’s see what renters insurance is.

What’s Renters Insurance?

Renters insurance provides three major coverages for people who rent an apartment or a house. These include liability coverage, personal property coverage, and additional living expenses property. Liability coverage covers the cost of medical bills or property damage repair in case any guests in your house are injured due to your fault. 

Additional living expenses will cover the cost of hotels and other things in case there’s theft in your house and you need to stay away from your home. None of the three coverages cover the cost of damage to the house since this is renters insurance. House damage is covered in homeowners insurance coverage.

The personal property coverage in renters insurance is the most important coverage and it covers damage or theft to your personal property, everything that is inside the house, including clothes, appliances, etc. In case these things get stolen, your policy will reimburse you. But then what about cars?

Do Renters Insurance Cover Your Car?

Unfortunately, cars are not covered in a renters insurance policy, and only in very limited and special cases can renters insurance reimburse you for a stolen car. Even though you keep your car in the garage, which is a part of your home and the car is your property, if the car gets stolen, you’ll need a separate auto insurance policy for reimbursement. 

However, using your renter’s insurance, you can get reimbursed for all the personal items that were inside the car, since renters insurance covers all other personal items. So there’s some silver lining to it. But coming to damages to your car due to collision, renters insurance will not cover it. 

The only rare scenario when your car will be covered under renters insurance is when you do not drive the car, and it sits inside your property/home/garage just as an accessory. Only then if the car gets stolen, and it is not registered in the DMV, you’ll be reimbursed for it. But that’s not what 99% of the people are looking for.

How to Get Your Car Covered? 

Do not rely on renters insurance if you want to cover your car from theft or damages. Renters’ insurance will not cover your car. But, some other great auto insurance policies will cover it and you should be having those if you drive a car. Let’s take a look at these policies. 

Collision Damage Waiver: Perhaps the most important optional coverage you can get is a collision damage waiver. This car insurance policy covers the cost of repairing any damage to your car while it is driven. Crash with another car, and you can claim a collision damage waiver to pay for the repairs. Crash into a pole or a tree or a wall, and still, you can claim this policy. 

Not just any kind of collision, but some companies will also let you claim a collision damage waiver if your car gets damaged due to potholes and bad road conditions. There are however some obvious conditions. One condition is that you need to be sober and not under the influence when the accident occurs. 

If found under the influence, not only the vehicle insurance company can reject your claim (and you’ll have to pay for the repairs from your pockets) but the company might also drop you from the policy. So avoid driving a car under the influence, it is not safe for you, both physically and financially. 

If a friend or a family member is driving your car and crashes it, your collision damage waiver will pay for the repairs. Again, there are some conditions here as well. For example, the other person driving the car must drive with your permission. If you did not allow them to drive, a collision damage waiver cannot be claimed. 

Another condition that must be met is if your family members will be driving your car regularly, they must be added as registered drivers in your policy. Failing to do so might result in the rejection of the insurance claim. 

Collision damage waiver can be a bit expensive, and the price varies by state. So to get the best policies at the best prices, you need to look for collision insurance policies state-wise. For example, if you live in Texas, then look for the Best Car Insurance in Texas to get the best coverage at the best rates. 

Comprehensive coverage

If you are worried about your car getting stolen, or damaged while it is parked in your garage or any place, then all you need to do is get comprehensive coverage. Comprehensive coverage covers the cost of repairs for all damages due to natural calamities such as fires, floods, earthquakes, hailstorms, etc, and others including theft, vandalism, projectile damage, riots, animal damage, etc. 

Comprehensive coverage is not expensive at all for the coverage it provides. The best factor about this policy is that in case of theft, the auto insurance company will reimburse you for the actual cash value of the car.

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