What type of insurance typically covers theft of a vehicle?

Comprehensive insurance is designed to cover a wide range of incidents that can damage a vehicle, including theft. When a vehicle is stolen, comprehensive coverage will typically reimburse the policyholder for the loss, subject to the deductible. This type of insurance provides financial protection against non-collision-related incidents, such as vandalism, natural disasters, and, importantly, theft.

In contrast, liability insurance primarily covers damages to other people's property or bodily injury caused by the policyholder in an accident, but it does not cover damage to the insured's own vehicle or theft. Collision insurance covers damages to the insured’s vehicle resulting from a collision with another vehicle or object, but it also does not provide coverage for theft. Property insurance generally pertains to the protection of physical items in a home or business and does not offer specific coverage for vehicles. Therefore, comprehensive insurance is the appropriate and necessary coverage for incidents involving vehicle theft.