Stolen Vehicles: Insurance Claim Process

If your car is stolen, you should contact the police immediately to file a report. After that, you need to get in touch with your insurer to start the claims process. The outcome of your claim will depend on whether your stolen car is recovered.

Comprehensive coverage is the only type of car insurance that covers theft or vandalism of your car. It will also cover the theft of parts of your car, such as a catalytic converter or a stereo. However, items stolen from inside your car, such as a laptop or phone, are not covered by car insurance. You may be able to claim for these on your home or renters insurance.

If your car is not recovered, your insurance company will declare it a total loss and pay you its actual cash value, minus your deductible. If your car is recovered but damaged, your insurer will cover the cost of repairs, again minus your deductible.

Comprehensive coverage

If your car is stolen, you should first contact the police to file a report. Then, you should notify your insurance company to start the claims process. If your vehicle is recovered, you must inform your insurance company immediately. The end result of the claim will depend on whether or not the stolen car is recovered. If the car is not recovered within 30 days, the insurance company will declare it a total loss and pay you its actual cash value (ACV) minus your deductible. If the car is recovered, comprehensive coverage will cover any resulting damages like broken windows and other vandalism that occurred during the theft.

Reporting a stolen vehicle

The process of reporting a stolen vehicle can vary depending on where you are. Some localities have smaller staff teams and may not have the capacity to handle incidents, so the process may differ. It is always a good idea to do a quick search for "report a stolen car in [city name]" to find out what is unique to your municipality when reporting a stolen car.

Confirm Your Car Was Stolen

First, you must determine whether your car was stolen. Make sure it wasn't towed or impounded by the local police. Check if someone else had access to your vehicle or if you lent it to a family member.

Contact Local Authorities

Report the crime to your local police or sheriff's department. In some cases, you may be able to call, while in others, you may have to go to the police department to complete an incident report. There are some districts where you can start the process online.

Notify Your Insurance Company

Contact your auto insurance company to report the theft and file a claim. Have the police report number and any other required information on hand. If you have a separate insurer for your homeowners or renters insurance, you may want to notify them as well, especially if valuable items were stolen from inside your car.

Report to the Department of Motor Vehicles (DMV)

Contact your state's DMV to report the theft. This step is important because they will update the vehicle identification number (VIN) of your car in their records as stolen, ensuring you are not held responsible for any violations related to your car while it was stolen.

Wait for an Outcome

Recovering stolen vehicles can take time, and sometimes they are never recovered or are found damaged. Stay patient and continue to work with the police and your insurance company to increase the chances of recovering your vehicle or receiving compensation.

When reporting your stolen vehicle, you will need to provide detailed information about your car, including its make, model, colour, license plate number, and any other notable features. You will also need to provide your vehicle's VIN, which can be found on your insurance documents or Proof of Insurance card. Additionally, inform the police if your car has a GPS system installed.

If your vehicle is financed or leased, be sure to report the theft to your finance or leasing company. They may need to discuss the case directly with your insurance company to expedite the claim process.

Claiming on insurance

If your car is stolen, you should contact the police immediately to file a report. After that, you should notify your insurance company to start the claims process. The end result of the claim will depend on whether or not the stolen car is recovered.

Comprehensive Coverage

Comprehensive coverage is the only type of car insurance that covers theft or vandalism of your car. It is optional and not included in a basic auto policy. It will cover the cost to repair or replace your vehicle as a result of unforeseen situations. It will also cover the cost of replacing parts that are stolen or damaged.

If you have comprehensive coverage, your insurance company will pay for your stolen vehicle if you don't recover it. You will need to provide the insurance company with as much information as possible, including:

• The date, time, and location of the theft
• A description of your vehicle, including make, model, license plate, VIN, mileage, options, service records, upgrades, and any distinguishing marks (stickers, scratches, etc.)
• The location of all keys to the car before and after the theft
• Names and contact information for anyone who had access to the vehicle
• Contact information for your financing company if the car is financed
• A list of personal property stolen with your vehicle (although this may not be covered by your insurance)

Your insurance company may also run a credit check to verify that you are in good financial standing. If you have significant debt, it may raise questions about whether you are trying to commit fraud, and your claim could be denied.

If your car is not recovered within 30 days, the insurance company will declare it a total loss and pay you its actual cash value, minus your deductible. This is the maximum amount you'll be paid. If the car is recovered and the repair cost is less, you'll only receive enough to cover the repairs.

If your stolen vehicle is found, you must notify your insurer immediately. If the policy has already paid out and you have bought a new car, your old car now belongs to the insurance company. If the car is found before the claim has been settled, the insurance policy will pay to repair any damage done by thieves or total the car out if the damage is too severe.

Vehicle recovery

Initial Steps:

• Contact the Police: The first step is to report the theft to the local police department by calling their non-emergency line. Provide them with detailed information about the vehicle, including the make, model, license plate number, Vehicle Identification Number (VIN), time, and location of the theft.
• File a Police Report: The police will create a stolen vehicle report, which is crucial for insurance purposes. They will also add your vehicle's information to state and national databases, making it harder for thieves to sell your car.
• Notify Your Insurance Company: Contact your insurance company as soon as possible to initiate the claims process. Inform them that your vehicle has been stolen, and provide the same detailed information you gave to the police. If you have comprehensive coverage, your insurance will cover the theft.
• Inform Other Parties: Depending on your situation, you may need to notify additional parties. These can include your lender or leasing company, the Department of Motor Vehicles (DMV), and any theft prevention tracking device companies, such as LoJack.

The Recovery Process:

Once a stolen vehicle is reported, the police will begin their investigation:

• Investigation and Surveillance: The police will check for leads, surveillance footage, and eyewitnesses to help identify the thief and locate the vehicle. They may also notify other law enforcement agencies and organizations specializing in vehicle recovery, such as the National Insurance Crime Bureau (NICB).
• GPS Tracking: Many vehicles today are equipped with GPS systems, allowing owners and authorities to track the car's location in real time, which is one of the most common methods for recovering stolen vehicles.
• Continued Investigation: If the vehicle is not located immediately, the police may expand their investigation. They may check with nearby pawn shops, chop shops, or other sources for information. They may also enlist the help of specialized recovery units, such as the NICB's Vehicle Theft Task Forces.

After Vehicle Recovery:

Once your stolen vehicle is recovered, several steps are involved in the legal process to determine its ownership and disposition:

• Identification and Documentation: The vehicle's identity is confirmed, and all relevant information is documented, including the recovery date, location, condition, and any damage or evidence found.
• Impoundment: The vehicle is typically impounded at a secure location, such as a police impound lot, to preserve evidence and prevent unauthorized access or further damage.
• Investigation and Legal Process: The police will investigate who stole the vehicle and gather evidence for the case. This may include interviewing witnesses, analyzing physical evidence, and reviewing surveillance footage. If a suspect is identified, charges will be laid, and the case will go through the legal process, including a court hearing.
• Return to Owner or Auction: The outcome of the legal process will determine the fate of your car. If the ruling is in your favor, you will need to provide proof of ownership and pay any impound or storage fees to get your vehicle back. You will then be responsible for any repairs or maintenance required to restore it to its pre-theft condition. If the legal process determines that the vehicle should be sold at auction, the proceeds will go to the state or local government, and any remaining funds may compensate you for your property loss.

It is important to note that the presence of a GPS tracking system or theft prevention device can significantly increase the chances of recovering your stolen vehicle. Additionally, always remember to park in well-lit and safe areas, keep your vehicle locked, and never leave valuables visible inside the car to deter potential thieves.

Insurance payout

If your car is stolen, you should contact the police immediately to file a report. After that, you should notify your insurance company to start the claims process. The outcome of the claim will depend on whether the stolen car is recovered.

If your car is not recovered, the insurance company will declare it a total loss and pay you its actual cash value (ACV). The ACV is the replacement value of your car, minus the depreciation of value from wear and tear. You will not be reimbursed for the vehicle's original value or the replacement cost.

Comprehensive coverage is the only type of car insurance that covers theft or vandalism of your car. It will also cover a stolen stereo, catalytic converter or anything else that is a part of your car. Comprehensive coverage is optional, so you won't be covered if you only have the state-required coverages.

If your stolen vehicle is recovered, your insurer will cover any damages under your comprehensive add-on, minus your deductible.

Frequently asked questions