Stolen Car Insurance Claim: Everything You Need to Know

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You'll need to report the theft to the police and obtain a police report, which is typically a requirement for filing a stolen car insurance claim.

The police report will help establish the date and time of the theft, which is crucial for your insurance claim.

In most cases, you'll need to notify your insurance company within a certain timeframe, usually 24 to 48 hours, to avoid any potential policy penalties.

Claim Rejection and Assistance

If you're dealing with a stolen car insurance claim, you might be wondering about the process of rejecting a claim or getting assistance. You can't avoid accepting a recovered vehicle without a significant fee, unless there's significant damage.

The insurance company will investigate the theft and reimburse you for your losses if the claim is covered, up to the comprehensive limit in your policy. This is a crucial part of the process, so be sure to follow up on the status of your claim.

Consider reading: Insurance Claim Process

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If your claim isn't covered, you'll have to pay out of pocket for your lost vehicle or vehicle parts. This can be a costly and frustrating experience, especially if you're not prepared.

To level the playing field, consider hiring an experienced car insurance attorney to help you navigate the process. They can provide valuable guidance and support throughout the claim process.

Here's a summary of the claim process:

Insurance Coverage and Reimbursement

Filing a claim with your insurance provider is the first step to getting reimbursed for a stolen car or car parts.

To get reimbursed, your insurance company will investigate the theft, and if the claim is covered, you'll be reimbursed for your losses up to the comprehensive limit in your auto insurance policy.

You'll be responsible for paying your deductible, which can range from a few hundred to several thousand dollars, depending on your policy.

Comprehensive car insurance covers theft-related problems, including stolen cars, stolen car parts, and damages caused by theft, car break-in, or attempted break-in.

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If your stolen car is recovered and needs to be repaired, comprehensive insurance will also cover the costs.

You'll get an insurance check for the amount your car is valued at minus your deductible.

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.

Here's a breakdown of what comprehensive insurance covers:

Keep in mind that comprehensive insurance won't cover personal items that are stolen from your vehicle, such as laptops or jewelry.

Preventing and Reporting Theft

To prevent your car from being stolen, it's essential to take a layered approach, as recommended by the NICB. Start by taking simple security steps, such as locking your doors, taking your keys out of the ignition, closing your windows, and parking your car in well-lit areas.

You can also consider adding comprehensive insurance to your car insurance policy to cover car theft. This will pay out for car theft and certain types of vehicle damage, up to the actual cash value of your car, minus your deductible.

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If your car is stolen, report it to the police as soon as possible. You'll need to provide them with detailed information on the vehicle and the location it was last seen. Don't call 911, as a stolen car is not considered an emergency – use the non-emergency line instead.

Does Theft?

Yes, car insurance covers theft if you have comprehensive coverage. Comprehensive coverage pays out for car theft and certain types of vehicle damage, up to the actual cash value of your car, minus your deductible.

To get comprehensive coverage, you'll need to sign up for it, as it's not included in the minimum coverage required by law. This type of coverage also includes stolen car parts, damage from break-ins, and other incidents like fires, floods, and falling rocks.

However, if you have personal property stolen from your car, comprehensive coverage won't reimburse you. Instead, your homeowners or renters personal property coverage, if you have it, will reimburse you under "off-premises coverage", up to a certain percentage.

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If you want insurance for car theft, you'll need to add comprehensive insurance to your car insurance policy. You can report your claim online or by phone, and your insurance company will most likely investigate the theft.

Here's what you'll need to report your claim:

  • Certificate of Title for the vehicle
  • Location of all keys to the vehicle before and after the theft
  • Names and contact information of everyone who had access to the vehicle
  • A description of your vehicle, including mileage, options, service records, and upgrades
  • A list of personal property stolen with your vehicle
  • Finance or leasing company contact information and your account number, if applicable

Gap

Gap insurance can be a lifesaver if your car is stolen. It covers the difference between what you paid for the car and its actual cash value, which is usually lower due to depreciation.

The actual cash value (ACV) of a car is its current worth, not what you paid for it. This is the amount your insurance will pay out if your car is stolen.

Gap insurance ensures you won't lose money if your car is stolen. It's especially important if you've made a down payment on a car loan.

Your insurance settlement will pay out the ACV of your car, but gap insurance fills the gap between that and the original purchase price. This way, you get the full amount you need to cover the loan or lease.

How Many Each Year?

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More than 1 million motor vehicle thefts occurred in 2022, marking the first time since 2008 that vehicle thefts nationwide topped 1 million.

Vehicle thefts jumped 7% from 2021 to 2022, a significant increase that highlights the need for extra precautions.

Monthly theft totals nationwide exceeded 75,000 in 2022, a staggering number that shows just how prevalent car theft has become.

Preventing Identity Theft

Preventing identity theft requires a layered approach, just like preventing car theft. The NICB recommends taking multiple steps to secure your personal information.

One step is to monitor your credit reports regularly, ideally every 12 months, to catch any suspicious activity. This can help you detect and respond to potential identity theft quickly.

Another key step is to be cautious with your personal documents, keeping them in a safe place and shredding any unnecessary papers to prevent them from falling into the wrong hands.

Check for Security Camera Recordings

Checking for security camera recordings can be a valuable step in preventing and reporting theft. It's common for businesses to have security cameras installed to monitor parking lots and other outdoor areas.

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Businesses near where your car was parked might have captured the thief on camera, so it's worth reaching out to them to see if they have any footage. If the theft occurred from your home, ask your neighbors if they have cameras or if they saw anything suspicious.

You might be surprised at how helpful a security camera can be in identifying a thief, so don't hesitate to ask around.

Vehicle Recovery and Status

Your stolen car has been recovered, and now you're wondering what to do next. Notify your GEICO claims examiner immediately to help resolve your claim quickly.

More than 85% of stolen cars were recovered in 2022, with about 34% recovered within the first 24 hours of being reported stolen. This is a great statistic, but it's essential to stay vigilant and take steps to protect your vehicle.

If your car is recovered after you've already been paid for your comprehensive insurance claim, the car insurance company takes ownership of the stolen car. This means you won't be able to get your old car back, but you'll be able to move forward with a new one.

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In some cases, your stolen car might be recovered but damaged. Your comprehensive insurance will pay for repairs, up to the actual cash value of your car, minus your deductible. If the damage is too severe, your insurer will pay for the car to be totaled.

If you've already filed a comprehensive claim and bought a new car, but then your old car is found, immediately notify your insurer. If the policy has already paid out, your old car now belongs to the insurance company.

Unfortunately, auto policies don't cover valuables left inside the vehicle and not recovered, like a cell phone or laptop. But your homeowners insurance or renters insurance might kick in to cover those losses.

Security and Prevention

To prevent your car from being stolen, start with common sense. Lock your doors, take your keys out of the ignition, close your windows, and park your car in well-lit areas.

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Locking your doors is one of the simplest and most effective ways to deter a car thief. Closing your windows will also prevent an opportunistic thief from breaking in through an open window.

Installing a vehicle immobilizer is another layer of defense. This can include devices such as kill switches, fuse cut-offs, and smart keys, which will prevent a thief from driving off with your car.

Here are some specific examples of vehicle immobilizers you can consider:

  • Kill switches.
  • Fuse cut-offs.
  • Smart keys.
  • Starter, ignition and fuel disablers.
  • Wireless, ignition authentication.

Does Cover Vandalism?

Does vandalism have you worried? Don't let it. If you have comprehensive coverage, your car insurance will cover vandalism, just like auto theft. You'll need to add comprehensive insurance to your policy to get this protection.

Comprehensive car insurance will pay to repair damages caused by vandalism, car break-in or attempted break-in. It'll also pay to replace car parts that are stolen, such as a catalytic converter, but not custom parts or equipment, like an aftermarket sound system.

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Here's a breakdown of what comprehensive insurance covers:

  • Pays if your car is stolen.
  • Pays to replace car parts that are stolen, such as a catalytic converter, but not custom parts or equipment.
  • Pays to repair damages caused by theft, car break-in or attempted break-in.
  • Pays if your stolen car is recovered and needs to be repaired.

You'll be responsible for paying your deductible for a vandalism 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 ($7,000 – $500 deductible = $6,500).

Anti-Theft Discounts

If you're looking to lower the cost of your car insurance, consider investing in anti-theft devices. Many auto insurance providers offer discounts for these devices.

You can find discounts from providers like AAA, AARP, Allstate, Dairyland, GEICO, Good2Go, and Nationwide. These companies recognize the importance of anti-theft measures in preventing car theft.

To qualify for these discounts, you'll need to install approved anti-theft devices in your vehicle. This can include features like GPS tracking, immobilizers, and alarm systems.

Some examples of anti-theft devices that may be eligible for discounts include GPS tracking systems and immobilizers. These devices can make it much harder for thieves to steal your car.

Here's a list of some providers that offer anti-theft discounts:

  • AAA
  • AARP
  • Allstate
  • Dairyland
  • GEICO
  • Good2Go
  • Nationwide

By installing anti-theft devices and taking advantage of these discounts, you can help keep your car safe and save money on your insurance premiums.

Take Security Steps

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Taking security steps is a crucial part of preventing your car from being stolen. The National Insurance Crime Bureau (NICB) recommends a layered approach to car security.

Locking your doors is a simple yet effective way to deter thieves. It's surprising how many people forget to lock their doors, making it easy for a thief to break in.

Taking your keys out of the ignition is another essential step in car security. This prevents a thief from hotwiring your car and driving it away.

Closing your windows is also a must. Thieves can easily break a window to gain access to your car, so make sure to roll them up every time you leave your vehicle.

Parking in well-lit areas can also help reduce the risk of car theft. Thieves tend to target cars parked in dark or isolated areas, so try to park in a spot that's visible to others.

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Here are some common sense security steps to take:

By following these simple security steps, you can significantly reduce the risk of your car being stolen.

Frequently Asked Questions

How does insurance determine the value of a stolen car?

Insurance companies determine the value of a stolen car by comparing it to similar vehicles for sale in your area and considering factors like mileage and more. This helps them calculate the actual cash value of your vehicle.

Ann Lueilwitz

Senior Assigning Editor

Ann Lueilwitz is a seasoned Assigning Editor with a proven track record of delivering high-quality content to various publications. With a keen eye for detail and a passion for storytelling, Ann has honed her skills in assigning and editing articles that captivate and inform readers. Ann's expertise spans a range of categories, including Financial Market Analysis, where she has developed a deep understanding of global economic trends and their impact on markets.

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