True or False: The AAIA covers theft of a vehicle by anyone in your household.

The statement is false because the AAIA (Automobile Insurance Agency Association) typically does not cover theft of a vehicle committed by individuals who reside in the insured's household. This is a common exclusion in many auto insurance policies. Coverage often extends to theft by individuals outside the household or non-family members; however, theft by household members is generally not covered, as insurers want to avoid fraudulent claims from insured parties.

This understanding aligns with the nature of auto insurance policies that aim to mitigate specific risks while protecting against loss. It is important to be familiar with the exclusions and limitations present in an auto insurance policy to fully grasp the scope of coverage.