Does Insurance Cover Stolen Cars?

Having your car stolen can be a nightmare for any car owner. The emotional distress and financial burden that accompany such an event can be overwhelming. However, if you have car insurance, you may be able to mitigate the financial burden. In this article, we will discuss whether insurance covers stolen cars or not. We will also answer some frequently asked questions regarding this topic.

What Does Car Insurance Cover?

Car insurance policies typically cover damage to your vehicle resulting from accidents, fire or theft. Some policies also provide additional coverage for medical expenses, liability, and personal injury. However, the extent of coverage may vary depending on the company, the type of policy, and the state in which you reside. It is important to read and understand the terms and conditions of your policy to know what is covered and what is not.

If you have comprehensive car insurance, it usually covers theft, and you will be reimbursed for the value of the car if it is not recovered. However, if your car is recovered by the police, your insurance company may need to pay for any damages caused to the car during the theft or any injuries sustained by the thief.

What is Comprehensive Car Insurance?

Comprehensive car insurance is a type of policy that covers damage or loss to your vehicle resulting from events such as theft, vandalism, or natural disasters. It is sometimes referred to as “other than collision” coverage. The cost of comprehensive car insurance may be more expensive than other types of policies, but it provides more extensive coverage.

What Does Comprehensive Car Insurance Cover?

Comprehensive car insurance typically covers damages caused by events such as:

• Theft and attempted theft of the car or any parts of the car
• Vandalism, including broken windows, graffiti, and other forms of intentional damage
• Natural disasters, such as hail, flood, fire, and earthquake
• Collision with an animal, such as deer, that causes damage to your car
• Acts of terrorism, riots, and civil disturbances

What Steps Should You Take if Your Car is Stolen?

If your car is stolen, you should take the following steps:

1. Call the police: File a police report as soon as possible. Provide as much detail as possible about the car and the circumstances surrounding its theft.
2. Call your insurance company: Inform your insurance company about the theft and provide them with a copy of the police report. The insurance company will initiate the claims process.
3. Cancel any active loans or leases: If you have an active loan or lease on the car, you should inform the financing company about the theft.
4. Check with the impound lot: If you cannot find your car, you should check with the impound lot. Sometimes, the police may tow your car if it was parked illegally, and you may need to pay an impound fee to get it back.

FAQs

Does insurance cover stolen cars parked at home?

Yes, insurance covers stolen cars parked at home. If you have comprehensive car insurance, you will be reimbursed for the value of the car if it is not recovered.

Does insurance cover stolen cars parked in public places?

Yes, insurance covers stolen cars parked in public places. If you have comprehensive car insurance, you will be reimbursed for the value of the car if it is not recovered.

Do insurance companies investigate car theft claims?

Yes, insurance companies investigate car theft claims to determine the validity of the claim. They may require you to provide evidence of the theft and cooperate with the police investigation.

Will insurance pay for a rental car while my stolen car is being replaced?

Some insurance policies cover rental cars while your stolen car is being replaced. However, the extent of coverage may vary depending on the policy and the company. You should check your policy to see if rental cars are covered.

How much will insurance pay for my stolen car?

The insurance company will pay for the current market value of the car at the time of the theft. The amount may vary based on the make, model, and condition of the car. You should check your policy or consult with your insurance agent for more details.

In conclusion, if you have comprehensive car insurance, it typically covers theft, and you will be reimbursed for the value of the car if it is not recovered. However, the extent of coverage may vary depending on the policy, company, and state in which you reside. It is always advisable to read and understand the terms and conditions of your policy to know what is covered and what is not.