Having your car stolen is a huge life disruption. More than 700,000 cars are stolen each year in the United States and the insurance industry has to process claims for most of these incidents. So, does car insurance cover theft?
This article will discuss what happens when your car is stolen and what you need to do to get it back or get reimbursed for its loss and how to make sure you are covered before it happens.
How to Make Sure Your Car is Covered If it is Stolen
To ensure you will not lose out if your car is stolen, you must carry comprehensive insurance coverage. Comprehensive coverage is what pays for the vehicle and any damage caused during the theft.
Comprehensive usually pays what is called the actual cash value for your vehicle if it is not found. And, comprehensive comes with a deductible. So, before you get your money the insurance company will keep your deductible amount.
What to Do If Your Car is Stolen
As with any crime, the first thing to do if you think or know your car has been stolen is to contact the police. File a police report immediately and also contact your car insurance company. The faster you get the process started, the more likely you are to recover your vehicle.
If you have a lease or loan on the car you will want to contact your lender also. The insurance company will have to work with the lender to pay off any amount you owe.
Will Your Stolen Car Be Recovered?
Most insurance companies don’t consider a stolen car as a total loss for at least thirty days after the incident. This gives time for police to recover the vehicle. If there is a tracking device, like a GPS in the car there is a higher likelihood of it being recovered. Some security systems also allow for remote reduction of the car’s engine power to stop thieves in their tracks and enable vehicle recovery. Still, many vehicles, once stolen, are not recovered.
Will Your Car Be Replaced?
Every insurance company has their own unique clams process, especially when it comes to total loss due to vehicle theft. You will likely be presented with an offer for the actual cash value, which is the value on the market and not how much you paid for the car. You’ll have to fork over your deductible also.
So, the insurance company will not replace your vehicle but will give you cash for your old vehicle. This can be a problem if you owe more on a car loan than the car was worth.
For this reason, it’s important to shop around and compare rates for comprehensive insurance and to understand what you will receive should your vehicle be stolen.
The InsuranceWins form lets you receive auto insurance quotes from major insurance companies so you can compare and find the rate that not only fits your budget but gets you the coverage you need to recover from a total loss.