Does Car Insurance Protect Against Theft?
The law requires that car owners have at least third-party insurance. Nonetheless, comprehensive car insurance is the best policy for car owners looking for wide coverage. Have you ever wondered what will happen if your car gets stolen? Please note that you won't have to worry if your vehicle gets stolen under any circumstance, and you have comprehensive car insurance. This coverage ensures that the insurer compensates you for theft.
It's no surprise that here is a rise in the number of comprehensive car claims. Besides the compensation for stolen vehicles, it also caters to car damages resulting from attempted theft. This may include smashed windows or broken ignition, perhaps due to break-ins. In such cases, the car insurance policy may reimburse the car owner up to the vehicle's actual value minus deductibles.
What Should You Do Immediately When Your Car Is Stolen?
If your car gets stolen, file a report with the police immediately. Here, you need to give basic details such as the following;
Number plate
Model of the car
Vehicle identification number
As soon as you report the theft to the police, talk to your insurance company to find out if you're covered for car theft. Also, if you left some personal items in the car, contact the insurer of your home insurance (if you have the policy).
If your vehicle is broken into, maybe with smashed windows or broken locks, the process is the same. First, report the break-in to the police. Then, take photos or videos of the vehicle to document the damage and contact your vehicle insurance company.
Note: You should make these calls immediately after discovering the theft case. Doing this can help increase the chances of restoring your car and ensure a quick and successful insurance claim process.
What Theft-Related Problems Does Comprehensive Car Insurance Cover?
Some of the theft-related scenarios that a comprehensive car insurance policy can cover include the following:
The car gets stolen
Stolen car parts: In this case, the insurance doesn't cover custom-made car parts or equipment, such as a personalised sound system.
Car damages that may result from theft or car break-ins
Stolen car that's recovered and needs some repairs: The damage may result from falling objects (such as tree branches), animal knocks, hail, vandalism, and even floods or fires.
Note: You are responsible for your theft claim's deductible.
Does Comprehensive Insurance Cover Personal Items Stolen from the Car?
A comprehensive car insurance policy will pay for stolen vehicles. However, it doesn't cater to any personal item that might be robbed from the car. To seek coverage for such items like phones, laptops, sports equipment, etc., that might be taken from the vehicle, you need condo or renter's insurance. They often pay for stolen items under homeowner, condo, or renters insurance.
Besides, comprehensive insurance doesn't cover the cost of a rental car. In this case, a stolen or damaged vehicle requires rental reimbursement insurance. Therefore, you can seek an insurance claim for the rental car while waiting to resolve your vehicle's concern.
How Much Do You Receive from the Insurance Company for Your Stolen Car?
How much your insurer will pay for your stolen car will depend on the policy's terms. Furthermore, once your claim is successful, your insurer will determine the payout by calculating your vehicle's actual cash value (ACV).
The insurance company will establish your car's value based on the following factors:
Make
Model
Age
Depreciation
Once the company's adjuster comes up with the value for your car, you'll get a cheque for the same amount. However, they will minus the deductibles you have on your car insurance policy.
What Happens When a Stolen Car Gets Recovered?
Suppose your car was stolen, and you reported the case immediately to the police and made an insurance claim. If the lost vehicle is discovered after your comprehensive insurance claim has been settled, then the insurance company will become the owner of your car.However, if you manage to recover your car after few days or weeks later and the insurance amount has not been paid to you, contact your insurer and inform them straight away. If the vehicle has damages, the insurer will pay for the repair or replacement costs up to your car's actual value minus your deductibles.
Your vehicle may occasionally be totalled due to the high expense of repairs. Your insurance would pay the same as it would if the car wasn't located after the theft. Your deductible is applied, and you are reimbursed the vehicle's actual cash value if the claim hasn't been paid and your recovered automobile is totaled.
Simple Security Steps to Protect Your Car from Theft
To avoid making car theft easy for robbers, try considering these simple precautions:
Always lock all the doors
Close your car windows
Take your keys off the ignition
Employ the audible car alarms
Use brake locks and steering wheel locks
Install a vehicle immobiliser like kill switches, fuse cut-offs, smart keys, etc.
Install a tracking system
Park your vehicle in open areas. Avoid dark and hidden areas.
Will You Get a Discount on Car Insurance Premium If Any Anti-Theft Device is Installed?
If you have an aftermarket or factory-installed anti-theft system on your car, insurance providers may give you a discount on your premium. Depending on your insurer, discounts on comprehensive coverage might range from 5% to 25%.
Anti-theft devices that usually will get you a discount include GPS-based systems, stolen-vehicle recovery systems, and VIN etching, which engraves your car's vehicle identification number (VIN) on the windshield and windows permanently.
Conclusion
Your car insurance company will only cover you for theft if you have a comprehensive cover. Owning this type of policy is the best option to get all-rounded coverage. It pays you in case of car theft and some types of damage due to theft. As repair or replacement expense, the insurer will pay you up to your vehicle's actual cash value, minus your deductibles. So, to safeguard your vehicle, instead of third-party insurance you need to go for a reliable, comprehensive vehicle insurance policy.
Disclaimer: The above information is for illustrative purposes only. For more details, please refer to the policy wordings and prospectus before concluding the sales.
Disclaimer: This article is published in association with HDFC Ergo and not created by TNM Editorial.