How does insurance cover a stolen car? We are sure many have asked this question before. While the best car insurance companies do cover theft, keep in mind that not all insurance policies do so. Insurance companies will only pay you for a stolen car if you have comprehensive insurance.
You will require comprehensive insurance even if you need to replace stolen parts.. Furthermore, if you have comprehensive car insurance, your insurance carrier will assist in repairing any damage caused to your car by a break-in or theft.
So, how does insurance cover a stolen car?
How does your car insurance policy cover a car that has been stolen? Comprehensive coverage protects you against theft or any damage to your car that is not the result of a collision. It also covers common risks like falling items, vandalism, and theft.
Comprehensive insurance also helps cover stolen parts and any damage caused by theft or a break-in, such as smashed windows or damaged door locks.
If you loan or lease your vehicle, your lender will almost certainly need full coverage. However, if you own a car outright, the choice is yours. You could either purchase the required minimum liability insurance coverage that you need to legally drive your car. Or you could choose to have comprehensive coverage to safeguard your assets properly.
Read: Why are minimum car insurance coverages a bad idea?
How does comprehensive insurance cover a stolen car?
Comprehensive coverage has a coverage limit and deductible. When we say deductible, we’re referring to the amount you must pay for a covered claim. When you buy comprehensive coverage, you can choose how much of a deductible you want to pay.
The coverage limit, on the other hand, is the maximum benefit you can receive for a covered claim. The depreciated value, or the vehicle’s actual cash value (ACV), is usually the limit.
Take note that comprehensive coverage does not cover the cost of a rental car as part of benefits for a stolen car. You’ll need to buy rental reimbursement coverage from your insurance carrier to take advantage of this.
Read: Do I need rental car insurance to rent a car?
Will my car insurance cover stolen parts?
Yes, if your policy contains comprehensive coverage, it will assist you in replacing stolen car parts and repairing damage caused by thieves. However, this will only be up to the coverage limits after your deductible has been removed.
Remember that comprehensive coverage does not cover any special equipment or accessories you have put in your vehicle, such as a sound system.
So, if your car has a lot of special parts, you might want to consider acquiring extra coverage for them. In addition, your coverage specifies whether stolen parts will be replaced with aftermarket or genuine manufacturer parts. So be sure to read your policy carefully before signing on the dotted line.
Filing a claim for insurance reimbursement
If your vehicle is stolen after you obtain comprehensive coverage, you must file a claim with the insurer right after. In most cases, the insurance will launch an investigation. Once it’s finished, your insurance company will reimburse you for your stolen car up to the extent of your comprehensive policy.
Read: How to file a car insurance claim
What is the compensation for a car that has been stolen?
You can purchase comprehensive coverage up to the car’s actual cash value, minus the deductible. When your car is stolen, this is the maximum sum you can receive.
However, if you recover your automobile after it has been stolen and can afford to have it repaired, the insurance will only pay up to this sum. In other words, you’ll only get enough money to fix your car.
What happens if I get my car back?
In the United States, it is estimated that roughly 46% of stolen cars are recovered. However, even if you get your car back, it may be damaged. The insurance company will usually cover the repairs unless the costs exceed the car’s worth, in which case they will incur a loss.
The insurance company will determine if the vehicle is worth saving. If this is the case, they will pay for the repairs. Otherwise, they will cover the car’s ACV minus your deductible.
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The insurance company will take ownership of your car if you retrieve it once the claim is settled. Alternatively, you can return the amount of the claim you got and take possession of the car.
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