Insurance Coverage For Stolen Vehicles

If your car is stolen, you should contact the police and your insurance company as soon as possible. It's also important to check if your insurance policy covers theft, as not all do. If you have comprehensive coverage, your insurance company will likely reimburse you for the current market value of the vehicle if it's not recovered. The timeframe for insurance payouts on stolen vehicles varies, but it's typically within 30–45 days of the initial claim filing.

You must report your stolen vehicle to the police immediately

If your car has been stolen, it is important to report it to the police immediately. This is because the chances of recovering your vehicle are higher if you report the theft promptly. According to the National Insurance Crime Bureau (NICB), 35% of stolen vehicles are recovered on the same day as the theft, and 45% are recovered within two days.

When you report the theft, you will need to provide detailed information about your vehicle, including the make, model, colour, license plate number, and any other notable features. You will also need to provide the location where the car was last seen. If your car has a GPS system, be sure to inform the police. They will add your vehicle's information to state and national databases, making it harder for thieves to sell your car.

Reporting the theft to the police will also provide you with a record to show to your insurer. Oftentimes, insurers will need a police report before honouring a claim. They may ask for information such as where the car was located, what you found at the scene, and the approximate time it was stolen. They may also ask if you gave your keys to anyone else, such as a repair shop.

In addition to reporting the theft to the police, you should also notify your insurer, lender, and the Department of Motor Vehicles (DMV) as soon as possible. This will help protect you from any liability associated with the car if it is used in criminal activity, accidents, or violations while it is not in your possession.

Contact your insurance company to start the claims process

Contacting your insurance company is the next step after reporting the theft to the police. They will guide you through the claim-filing procedure. You will need to provide them with your policy information and the police report. Be prepared to answer questions about the incident, your car's specifics, and your coverage options.

• Date and time of the theft
• Location of the vehicle
• Location of all keys to the car
• Names and contact information for anyone who had access to the vehicle
• Detailed description of the car and its condition when it was stolen
• Contact information for your financing company if the car is financed
• Police report number

The insurance company will launch an investigation, which may include contacting the police, reviewing your policy coverage, and potentially inspecting the scene. They will determine whether your car is recovered or declared a total loss. If your car is recovered, they will assess the damage and repair costs before determining the payout. If your car is declared a total loss, they will offer a payout based on its actual cash value as outlined in your policy.

It is important to cooperate fully with the insurance company's investigation and provide any requested information promptly. This will help them reach a decision faster and potentially expedite the payout.

You'll need comprehensive coverage for your insurance to cover theft

If your car is stolen, you should first contact the police to file a report. You should then get in touch with your insurance company to start the claims process. The outcome of the claim will depend on whether or not the stolen car is recovered.

Comprehensive coverage is essential for theft claims. Comprehensive car insurance will cover:

• The cost of replacing your vehicle if it is stolen and not recovered.
• The cost of repairing your vehicle if it is stolen and then recovered but damaged.
• The cost of repairing any damage caused by theft, a break-in, or an attempted break-in.
• The cost of replacing car parts that are stolen, such as a catalytic converter, but not custom parts or equipment, like an aftermarket sound system.

Comprehensive coverage is optional, so you won't be covered if you only have your state-required coverages. If you carry only liability insurance, there will be no coverage for your stolen car. Collision coverage won't protect you from theft either. Comprehensive is the only coverage that can cover car theft or damage to your car caused by theft or break-in.

If you finance or lease your vehicle, your lender will likely require you to buy comprehensive coverage to protect their financial interest.

You'll be responsible for your deductible for a theft claim. For example, if you have a $500 deductible and your car is valued at $7,000, you would get an insurance check for $6,500.

Comprehensive insurance also covers damage to your vehicle from problems such as vandalism, fires, floods, hail, falling objects (like tree branches), and collisions with animals (like deer).

If your car is recovered, your insurance company will cover any damage

If your car is stolen, you should contact the police and file a report. Then, you should notify your insurance company to start the claims process. If your car is recovered, your insurance company will assess the damage and cover the cost of repairs. If the car is found with no apparent damage, you should still contact your insurance company so they can assess the vehicle for any damage. If the vehicle is declared a total loss, the insurance company will pay its actual cash value.

The insurance payout process for a stolen vehicle involves several stages. After reporting the theft to the police, you should file a claim with your insurance company. They will guide you through the claim filing process and investigate the theft. If your car is recovered, the insurance company will assess the damage and repair costs. They will then determine the payout or potential repair options. It is important to cooperate with the investigation and provide any requested information to expedite the process.

The timeframe for an insurance payout on a stolen vehicle typically falls within 30-45 days of the initial claim filing. However, this can vary depending on the complexity of the investigation, the availability of the police report, and whether your car is recovered. If your car is found, the insurance company will need to assess the damage and repair costs, which can add time to the process.

It is important to note that comprehensive coverage is essential for theft claims. If you only have liability coverage, you will not be reimbursed for a stolen vehicle. Additionally, you will be responsible for the deductible amount stated in your policy before receiving the payout.

If your stolen vehicle is recovered, it is important to notify your insurance company immediately. If the policy has already paid out and you have purchased a new car, the recovered vehicle now belongs to the insurance company. They will take possession of the vehicle and sell it at auction. You will receive the sale proceeds minus your deductible and any salvage value retained by the car.

If your car is not recovered, your insurance company will pay out its actual cash value

Your deductible will be taken out of the insurance settlement cheque, along with any amounts owed to lienholders. It's important to note that comprehensive coverage is essential for theft claims. If you only have liability coverage, you won't be reimbursed for your stolen vehicle. Additionally, you will be responsible for paying the deductible amount stated in your policy before receiving the payout.

In the event that your stolen vehicle is not recovered, the insurance company will declare it a total loss. This means that they will offer you a payout based on the actual cash value (ACV) of your car as outlined in your policy. You have the right to seek legal advice if needed, especially in complex cases or if you feel their offer is unfair. You can negotiate with the insurance company, present your evidence, and discuss your concerns to reach a mutually agreeable settlement.

It's important to stay in communication with your insurance company throughout the process. Provide them with any requested information promptly and keep them informed of any relevant updates, such as new information from the police or additional documentation. This will help move the claim forward efficiently and potentially accelerate your payout.

Frequently asked questions