Does Car Insurance Cover A Stolen Car
Car insurance can cover a stolen car, but only if you have comprehensive coverage. If your car is stolen and not recovered, this coverage pays the current value, or actual cash value, of your vehicle.
Comprehensive claims have a deductible, which is the amount you pay before your insurance pays the rest. If you have an older car, compare the value of your car to the cost of your deductible and how much you pay for coverage. If there isnt much difference, you likely dont need comprehensive insurance.
In some cases you might have to buy comprehensive and collision insurance together, for instance if you have a car loan or lease. This may increase your insurance bill considerably because collision can cost twice as much as comprehensive, or more.
Even so, you can still find a reasonable rate. Always shop around and compare car insurance rates to get the best price.
How To Prevent Your Car From Being Stolen In The Future
While it may be too late to protect your stolen car, there are several things you can do to ensure that your next vehicle is safer from thieves. Some of these measures will even help lower your auto insurance cost.
Here are some simple tips to reduce the chances of your car being stolen:
- Close your windows
- Install a car alarm system
- Install a GPS tracking system
- Keep valuables out of sight
- Lock your vehicle
- Park your vehicle in safe areas
- Store keys in a safe area away from your vehicle
- Turn off the ignition when not operating the vehicle
- Use a physical anti-theft device
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Find Cheap Auto Insurance Quotes In Your Area
Motor vehicle theft is a common crime in America with hundreds of thousands of cars being stolen every year.
If you’re the victim of car theft, report your stolen car to law enforcement and file a claim with your car insurance company.
You also may need to contact your financing or leasing company about the stolen vehicle. Doing so will help you avoid legal issues, and ensure a smooth claims process with your insurance policy. Below we outline the key steps you should take if your car is stolen.
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Cash Value Paid When Car Not Recovered
If your car is not recovered, the insurance company will help you replace your car. Typically, the insurance company will issue you a check for the actual cash value of the car. This is the purchase price of the car minus depreciation and deductible. If you still owe money on a car loan or lease, this payment may go to the finance or leasing company first. Your insurer will usually require you to relinquish the title to your car when you receive payment.
References
How Comprehensive Coverage Covers A Stolen Car
Comprehensive coverage is a type of car insurance that you can purchase as an add-on to your policy. Comprehensive coverage provides protection against theft or damage to your car due to events other than collision. These perils include:
- Falling objects, like tree branches.
- Vandalism.
- Riot or civil disturbance.
The cost of comprehensive coverage varies among insurers. If you are leasing a car or if you purchased one through a lender, your lender will probably require you to purchase comprehensive coverage in order to protect their investment.
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Who Pays When A Rental Car Gets Stolen
Its summertime. The sun is blazing, the sky is blue, and you come back to your hotel to find that your rental car was stolen. Its not your fault, but that doesnt matter because you signed a contract with a rental car agency. What if the unthinkable happened and your rental car was stolen while you were on vacation?
NewsWorks has noticed from time to time that even in the 14th District, which covers Germantown, Mt. Airy, and Chestnut Hill, occasionally someone gets their rental car ripped off.
*July 18, 2011 5100 block Sheldon St. 2011 Nissan Sentra stolen. Complainant said the car was a rental.
*March 23, 2011 1200 block E. Stafford St. 2011 Chevy Impala stolen. Complainant said he left the keys in the ignition of his rental car. He said he had been receiving prank phone calls about the car and so initially thought the theft was a prank.
*March 14, 2011 1900 block 73rd Ave. 2010 Chevy Impala was stolen, but later recovered. Complainant said he left the keys to the rental car on a step near the parked car while he was at the location. The vehicle was heavily damaged when it was recovered.
Who pays?
We wondered if this was to happen, whos going to get in the most trouble? Would it be the rental company, the renter, or the criminal once theyve been caught? Would the rental car insurance offered to them even be needed in the first place?
If that alternative doesnt work, there are other avenues as well.
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Will Comprehensive Insurance Replace My Stolen Vehicle
Stolen vehicle claims are treated similarly to a total loss from an auto accident. Comprehensive insurance can provide protection up to the actual cash value of your vehicle, less your deductible. The ACV represents your cars current, depreciated market value not the price you paid for it.
Still owe money on your vehicle? Since the cash payout for a stolen car is based on its actual cash value not the amount you have left on your car loan you could be in a tough spot if your car is worth less than you owe.
Thats where ERIEs Auto Security Coverage Endorsement* can help, by making up the difference between your insurance settlement and the remaining loan principal.
Does Insurance Cover A Stolen Car If You Left It Running
Yes, if you have comprehensive coverage you are covered for theft, even if it was because you left the car running. Insurance companies understand that mistakes happen, so if you leave your car running and itâs stolen, your insurance company will still pay for it.
However, if your car is stolen because you left the keys inside, you left it running, or you are dealing with the theft of an unlocked car, your insurance company may investigate your claim a little more closely to make sure it isnât a case of insurance fraud.
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S To Take If Your Rental Car Is Stolen
- Firstly, you need to report the theft to the police. Let them know if any of your personal belongings were in the car when it was taken.
- You will also need to contact the car rental company as soon as possible to inform them that the car has been stolen. Let them know that you have notified the police.
- The rental company can charge you based on the liability or excess amount specified in your rental agreement. Make sure you keep a copy of any receipts or incident reports. Your financial liability will depend on whether you had purchased insurance for your rental car.
The Immediate Role Of Insurance In Car Theft
If you have car insurance with comprehensive coverage on it, the next thing you will want to do is contact your insurer and let them know that your vehicle has been stolen. You will need to provide them with a case number as provided by the police.
If you have replacement car rental coverage, your insurance will cover the cost of a rental car for a period so that you can continue to meet your regular obligations, while waiting to find out if your car has been recovered.
You may or may not have a waiting period before you are eligible for this coverage, depending on your insurer. Be sure to ask your insurer about what to expect.
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Report Your Stolen Car To Your Leasing Or Financing Company
If your stolen vehicle is financed or leased, youll need to contact the financing or leasing company. In this scenario, the insurance company pays a claim out to the financing or leasing company and you’re no longer be liable for payments.
Have your financing or leasing company contact your insurer directly, so that the claims process moves quickly.
Way 10 Keep A Record Of Your Belongings When Your Car Is Stolen
As noted above, if your car is stolen, the insurance company might compensate for your loss including your personal belongings left in the stolen vehicle based on your insurance policy.
So instead of immersing yourself in the sadness when you find your car is stolen, keep a record of your valuables in the stolen vehicle while your memory is fresh. Also, prepared the receipt of the items you’re going to include in the insurance claim to recover your loss.
Besides the above effective ways to look for your stolen car, you can get detailed answers below to the hottest “Car Is Stolen” questions, including stolen car insurance, chances of finding stolen vehicles, etc.
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How Do I Prevent My Vehicle From Being Stolen
There are many easy steps you can take to minimize the likelihood of your car being stolen. A lot of crime is opportunistic if the opportunity were not there, then the crime probably wouldnt occur.
Some things that are free and easy to do include:
- Lock your vehicles doors.
- Remove the keys from your vehicle.
- Dont leave any spare keys near the vehicle.
- Close all your windows .
- Park in well-lit areas where a car thief would be visible.
- Avoid leaving valuables such as laptops, phones, and wallets in your car.
- Stay aware of your surroundings.
Give Up The Recovered Car To The Insurer
Depending on the state you are, the worth of the car and how long it has been before it was recovered, your car insurance company might want you to buy back the car or you completely forfeit it to the insurer.
In Australia for instance, you can get your insurance claim paid in full if your car is stolen without necessarily getting proof from the police. However, once the car is recovered, you are not permitted to touch it because it now the property of the insurance company.
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Contact Your Financing Or Leasing Company
If you lease or finance your vehicle, keep the lender in the loop throughout the reporting process. They hold the title on the car, which means any insurance settlement will go to them first, Walker says. Once the insurance company processes your claim and disburses payment to the lender, any remaining funds go to you.
What Happens If My Car Is Stolen And It’s Still Being Financed
Until your car loan is paid in full, you are still obligated to make payments, even if it is not recovered. Your payout can be directly applied to help pay off your car loan. If there is still a balance owing after youve paid the claim amount to your finance company, you will be responsible for paying the difference out of your pocket, unless you have gap insurance.
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Tips To Prevent Automobile Theft
Auto theft is preventable. In fact, nearly half of thefts are due to driver error leaving the doors unlocked, keys in the ignition, etc. Follow these prevention tips to lower the chances of your automobile being involved with theft :
- Always lock your vehicle : Make sure all doors are locked before you leave your vehicle.
- No spare key : Never leave a spare key in your vehicle or any easy place to find.
- Never leave the it running : Never leave your keys in the ignition or the car running without someone inside.
- Park in the garage : If you have a garage at home, use it.
- Keep windows rolled up when parked : Always close your windows and sun roof before exiting.
- Park in well-lit areas : Always park in well-lit and high traffic areas, especially at night.
- Invest in anti-theft devices : Installing a theft prevention device will make it more difficult to steal, less of a target for thieves, and you could qualify for auto insurance discounts.
- Keep valuables out of plain sight : Never leave valuables, such as your phone, wallet, or shopping bags where people can see them.
- Make sure you have the correct insurance : If you are not sure if you have auto theft protection, talk with an advisor today.
What If My Car Is Stolen Will My Insurance Cover It
The insurance coverage you purchased determines whether you will be covered in the event of theft. If your car gets stolen, insurance companies wont cover you if you only have liability coverage.
After you file a police report, call your insurance company and let them know that your car has been stolen. Your auto insurance provider will likely tell you to wait a certain number of days .
If the stolen car isnt found when that time has passed, you will be reimbursed at the current market value of your car. If the car is found but damaged, you will be paid the repair costs, less any applicable deductible.
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What Happens If Your Car Gets Stolen With Full Insurance Coverage
If you have full insurance, meaning comprehensive and collision coverage, your insurance company guides you through the process after you file a stolen vehicle report with the police. Full insurance coverage reimburses you for car theft. Insurers dont like it when you make a theft easy by leaving your keys in the ignition and the car running, for example, but usually provide compensation. Be sure to read your policy carefully for language that might exclude coverage.
Tips
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If you have both comprehensive and collision coverage for your vehicle, you will most likely be reimbursed if your car is stolen. Some policies have exceptions to this rule, so be sure to thoroughly examine your policy before making a claim.
Check If Your Car Is Stolen Before You Head To Find Your Stolen Car
“My car was stolen, now what?”
Well, the first thing is to check if your lost car is indeed stolen before you have ants in your pants. Follow the below tips to do a stolen car check.
Check the parking lot carefully. Public parking lots would be one of best places to start looking for a stolen vehicle. Maybe you just forget the exact place of your car.
You can download a “Find Stolen Car” app to your iPhone or Android smartphone to find your car, if you don’t remember where you’ve parked your car. You can check more apps here.
Check with towing companies before reporting your car is stolen.
Track your car by VIN number. The VIN check contains all history report, including accidents and service records. You can check if a car is stolen by license plate and VIN.
If your car is indeed stolen, don’t waste any time! Skip to the next part right away.
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Way 3 Inform Your Leasing Company If Your Rented Car Is Stolen
If your stolen car is rented, contact the leasing company after you find the vehicle is missing. Inform them that you’ve already reported the stolen car to the police and ask for the car’s identification numbers and tag.
Also, remember to request an incident form from the rental company and review the contract terms about the liability insurance you have chosen. If you have bought full coverage from the car leasing company, you will be covered if the car is stolen, supposing that you were complying with the contract at the time of the theft.
Check The City’s Transportation Website
You may be able to track down your stolen vehicle by checking parking violations. Often, thieves abandon these cars, which are then ticketed and placed in the parking violation database. All you need to do is log into your city’s transportation website and enter your license plate to check. If anything comes up, contact the police.
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What Do I Do If My Car Is Stolen
The two most important things you need to do if your car is stolen are to file a police report and an insurance claim. Remember, before filing an insurance claim for a stolen vehicle, you must file a police report.
A police report will often need information such as:
- VIN and license plate number
- Year, make, and model of your car
- The place and estimated time of the theft
- Did you have any personal property in the car when it was stolen?
- What are identifying features of your car?
- Do you have a vehicle location device?
When filing an insurance claim, you will probably be asked for information like:
- Copy of the cars title
- Location of all vehicle keys before and after the theft
- Names and contact information for all people with access to the vehicle
- A description of the vehicle
- Your auto lenders contact information
- Your policy account number
