Does Auto Insurance Cover Theft?
Auto insurance would cover certain types of theft if the policyholder has comprehensive coverage on his insurance policy. Comprehensive coverage covers the policyholder from theft and other losses and damages to the car that is other than collision. Comprehensive can cover certain types of theft such as the stolen cars of the insured. It could also replace some parts of the car that are stolen. Furthermore, comprehensive coverage would cover the damages of the car that are due to break-in and theft.
Does Auto Insurance Covers The Stolen Contents Of The Car?
Unfortunately, No. Auto insurance does not cover stolen personal property inside your car. However, your homeowner’s policy, as well as your condo and renters policy, can cover your stolen personal property. Your homeowner’s policy has coverage for your personal properties, which can also cover your off-premises personal properties. This off-premises property coverage would cover your personal belongings even though you are not at home. However, it limits the coverage for your jewelry, and electronics, such as laptops and cellphones.
Do Upgrades To The Car Can Be Covered When Stolen?
Custom parts coverage may or may not be available to some insurance providers. So be careful to choose where to get your car insurance policy. Car Insurance has coverage for customized equipment, including exterior lighting enhancements and aftermarket audio equipment. Besides, it can also cover other customized parts of the vehicle, including shifter knob and pedals, grille inserts, rear spoiler, and customized steering wheels. Coverage for these parts could be applicable even if the car is not stolen.
Coverage For The Damages To Your Car If It Gets Recovered
Comprehensive coverage would cover the damages to the insured’s car if it gets recovered. For further illustration, suppose that the thief twisted some of the frames of the insured vehicle. Furthermore, the thief breaks the steer and deploys the airbag. Comprehensive coverage would cover the cost of repair for the damages.
Rental Car Reimbursement Coverage
A lot of insurance providers offer rental coverage as an add-on coverage to their auto insurance policies. This coverage would pay for the individual’s fees to rent a vehicle up to a specific daily limit only. Many companies offer a minimum of $25 per day limit, and some offer $750 per claim limit. The insurance company could reimburse the full cost of renting another vehicle; however, only if the cost to rent another vehicle doesn’t exceed the daily limits of the insured’s rental reimbursement coverage. However, if your car is in a state of total loss and cannot be recovered, the insurance company will only give you a specific amount of time to cover you from rental reimbursement coverage.
Take Note: Reimbursement to your rental house due to your is home uninhabitable, due to damages caused by a fire is not covered, Check our Homeowners page for more information.
For Loan And Lease Pay-Off: Gap Coverage
Gap insurance is a type of insurance that covers the gap of the leased car in the case of a total loss. Gap insurance could cover the difference between what the insured owes to their vehicle and the actual cash value of the car at the time of total loss. The car’s actual cash value is the car’s monetary value in the event of loss and not its original price.
What To Do When Your Car Was Stolen?
File A Police Report
Insurance companies and agencies always advise the insured to file a police report. Ideally, the insured must file a police report within 24 hours the theft occurs. It will improve a higher chance of recovering the insured’s vehicle. Furthermore, a police report is one of the requirements before an insurance provider accepts your claim.
Police will require you to give some information about your vehicle to locate and identify your vehicle accurately:
Requirements For Reporting A Claim
- The place where you parked your car and the estimated time of the theft
- Identifiable marks of the vehicle, such as dents, stickers, and bumper. As well as other customization to the vehicle that makes it unique and more recognizable to the owner.
- VIN of the car. VIN or vehicle information number is an identifying code for a specific type of vehicle. It displays the unique car features, manufacturer, and specifications.
Police Officers always consider the owner of the car as the primary suspect for the loss of the vehicle. So be sure and forthright to what you will report and say when you file a police report.
File An Insurance Claim
Your auto insurance provider will require you to give them a lot of information with regards to your stolen car. Like what the police do, they will require you some of your automobile’s information.
- Certificate of the title of the vehicle
- All the names and information of the people who have access to the stolen car
- Location of the key of the car during and before and after the theft
• The mileage, services records, and upgrades of the vehicle or in other words, the description of the vehicle
- Leasing and finance company contact information and your account number, if applicable.
The insurance provider may also run a credit report to verify if the insured is in good financial standing. If the insured is in debt and they file a claim for a stolen vehicle, it will raise the conclusion that the insured would likely commit a fraud.
Also, if your car is leased, you would need to notify your leasing company as soon as the theft happens.
Processing A Claim For Stolen Insured Car
If the insured car got stolen, the insured must immediately document the loss and notify the insurer. Contact your insurance provider as soon as possible, and they will help you verify if your insurance has comprehensive coverage. However, many insurance companies wait up to a specific time to cover a theft claim. That is due to the reason that insurance companies want to make sure that the car is unrecoverable.
Stolen Car Claims Investigation
Every theft claims whether it is the customized rear spoiler or the car itself, the insurance adjusters will thoroughly investigate the incident. If the questions of the adjuster are leading you as their primary suspect. Do not take it personally, claims adjusters duty is also to look out for fraudulent claims. Claims process includes:
- Mileage of the stolen vehicle
- The location where the car last parked
- Date and the estimated time of the theft
- Police report
How To Deal With A Total Loss Claim
If the car of the insured was stolen, the insured would have a total loss claim. In this case, the insurance provider will only pay for the actual cash value of the car, after the insurance company pays for the loss of the vehicle. The insured and the insurance provider will come to an agreement that the ownership of the car will now be on the insurance provider. If the car has found after settling the claim, the insurance company will be the legal owner. However, you can have it again if you bought it back.
How To Prevent Your Car From Being Stolen?
- Never leave your car keys inside your unattended vehicle
- Keep your car locked even when you are driving
- Avoid leaving catchy valuable things inside your vehicle specifically when the car is not tinted
- Install anti-theft system inside your car
- Be cautious about where you park your vehicle, especially at night. Thieves often attack during the night.
- Avoid going to high crime areas
- Do not leave the title of your car inside your unattended vehicle
- Install a GPS tracker on your vehicle
- Passive ignition cut-off system
- This system disables the system from starting and hot-wired
- Systems that emits a signal that can be tracked by the owner and the police