Auto insurance can be a strange thing. You never know when you might need it, but when you do need it, you're thankful for it. While its importance can't be understated, many car owners still risk driving every day without car insurance.
There are many vile elements out there, and your car can be their next target. If you don't have car insurance or your policy doesn't cover theft, then you might come to regret it.
Does auto insurance cover theft?
Suppose that someone manages to steal your vehicle, will your auto insurance cover it? The answer is yes, but only if it's explicitly stated in your policy. Most comprehensive insurance plans cover theft, among other things.
So, if your car is on a more basic plan with limited coverage, it likely doesn't cover theft. In this case, if your car gets stolen, you'd get nothing from the insurance company.
What about car damage due to attempted theft?
If someone tries and fails to steal your vehicle—and leaves a mark, you would similarly need comprehensive insurance to be reimbursed for damages. All-inclusive policies likely cover any type of damage caused by attempted theft or break-ins. This coverage might include broken windows, doors, mirrors, and stolen infotainment units.
However, comprehensive insurance typically doesn't extend to non-vehicle-related property, such as bags, gadgets, and other personal items.
What to do if someone steals your car
If you've been victimized by auto theft, the first thing you have to do is file a police report. The authorities might ask for information on the vehicle, including its license plate, make, and model. They'll also likely question you regarding the time and place the vehicle was last seen.
Once the police report has been successfully filed, follow it up by filing an insurance claim with your provider. The insurance company will need time to evaluate your case and calculate a payout estimate. You might be asked to provide documents and details of your car. Provide as much of these as you can, as they may help further your goal of a successful insurance claim.
Will I get the stolen vehicle's full retail value?
The amount you ultimately receive as compensation for a stolen vehicle depends on several factors. Comprehensive insurance will cover your car's actual cash value, but the company will subtract your deductible from the final amount. The deductible is the amount you initially set when you availed of an insurance policy.
That's not all, though, as the actual cash value (ACV) depends on its brand, age, mileage, and accident history. The insurance company is responsible for determining a fair valuation that eventually lands in your pocket.
Auto theft can be a troublesome experience for car owners, especially if they don't have comprehensive insurance. If you have one and your car is stolen, you can rest a bit easier knowing that the insurance company will compensate you for the loss.
While the actual cash value can differ from a case-to-case basis, that's better than having no insurance at all. In those cases, your car, and the money you put in it, could be a lost cause.
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