We all understand that comprehensive car insurance will cover most accidents and injuries, but does your insurance cover a stolen car? Your level of coverage will depend mainly on the type of insurance you have placed on your vehicle.
As a rule, comprehensive auto insurance is your best protection against non-collision damage, vandalism, and theft. This would include covering your car’s ACV or actual cash value if it is stolen.
- Comprehensive car insurance is often offered as an option that can be added to your policy but is not required. Therefore you should consult with your insurance provider to verify if you have this vital coverage or not. If you do not have comprehensive insurance, you will be unable to file a claim for compensation if someone steals your car.
- Liability insurance generally provides the minimum coverage possible for most motorists. It protects other people’s property, cars, and health – but it does not cover your stolen car.
- Collision insurance covers the cost of fixing any damage to your vehicle in the event of an accident. It does not cover other cars, and it does not cover your loss if your vehicle is stolen.
What is ACV?
Your vehicle’s actual cash value (ACV) is the total replacement value once wear and tear and depreciation are deducted. ACV does not include any insurance deductibles that may be applicable. The insurance adjuster will look at several factors, including your car’s year, make, model, Blue Book value, and any accident history, to figure the appropriate valuation.
Aftermarket upgrades, such as new stereos or cameras installed in your car, will not be considered by insurance adjusters when calculating the car’s value.
Was Your Car Stolen?
Before you file your insurance claim, read through these tips:
Verify the Theft: Ensure that your car was stolen – not borrowed, towed, or repossessed for non-payment.
Act Quickly: If you are sure that your car was stolen, call law enforcement immediately and file an official police report. Most insurance experts recommend filing a police report within 24 hours of discovering the theft. Once the police receive the report about your stolen car, your vehicle’s details will be entered into state and national databases. By having this information entered rapidly, you reduce the ability of the thief to resell your car. The police will ask for the VIN, make/model and year, location and time of the theft, and any installed locator device.
Inform the Insurance Company: Once the police report is filed, you can begin the conversation with your insurance company to file a claim. Your insurance company will also require as much information as possible, including the title, detailed description of the car, and possibly even a list of those individuals who had access to your vehicle.
You May Be Investigated: Your insurance company may check your credit score to establish that your accounts are in good standing. If you have substantial outstanding debt and report a stolen car, the insurance company may suspect fraud. This is why it’s essential to be entirely honest while giving any needed information.
Important: What happens if you were reimbursed for a stolen car and the police eventually recover your car? The insurance company will likely take possession of the vehicle. If you have gotten a cash settlement but have not yet purchased a new car, you can return the funds if your car is returned. But you will not be able to keep the new car and your returned car. The insurance company will work with you regarding the details of your case to figure out the best solution.
If you are looking into car insurance and need professional advice, call the experts at Anderson & Associates Insurance Group. We serve Manatee County residents and provide all of their insurance needs.
