Does insurance cover a stolen car?

You never know when your car might become a target for theft. Auto insurance is something many drivers don’t think about until they need it. It may seem like an extra expense until you actually need it, but it’s there to protect you when the unexpected happens. Despite its importance, some car owners still risk driving without insurance or with policies that don’t cover theft. 

If your car is stolen and your insurance doesn’t include theft coverage, you could end up covering the loss entirely on your own. If you do have insurance but you’re not sure what your policy covers, now is a good time to check. You don’t want to find out the hard way after something happens to your car.

Your car’s theft coverage depends on the type of insurance policy you choose. Comprehensive insurance usually includes theft coverage as part of its protection, where it goes beyond just covering accidents since it also covers events like natural disasters, vandalism, and theft. Insurance like this can help protect your investment by providing compensation if your car is stolen.

On the other hand, basic insurance policies, such as liability-only coverage, do not include theft protection. These plans only cover damage you may cause to others or their property in an accident and don’t offer coverage for your own vehicle, leaving you unprotected in the event of theft. If you rely on a basic insurance plan and your car gets stolen, the financial loss falls entirely on you. 

If someone tries to steal your car but doesn’t succeed, the car could still suffer damage, such as broken windows, damaged door locks or handles, or missing components like mirrors or an infotainment system. In these cases, comprehensive insurance can help pay for the cost of repairs to restore your car to its original condition.

However, comprehensive insurance generally does not cover personal belongings that were inside the car during the break-in. Items like your laptops, mobile phones, wallets, or other valuables are not included in this coverage. To protect these, you may need a separate personal property insurance policy or rely on coverage from homeowner’s or renter’s insurance if applicable. 

If your car is stolen, the first thing you need to do is file a police report. Make sure to provide detailed information about your car, such as its license plate number, make, model, color, and any distinguishing features like stickers or scratches. You should also let the police know when and where you last saw the car. 

After filing a police report, contact your insurance company. Most insurers require a copy of the police report before they can process your claim. You’ll need to provide your insurance policy number, details about the car, and any other relevant documents they ask for, such as the vehicle registration or a recent proof of ownership.

Your insurer may also ask for additional information, like the estimated value of the car or any recent upgrades you’ve made to it. Once you’ve submitted everything, the insurance company will review your claim and calculate the car’s value,. If your policy covers theft, they’ll provide an estimate of how much compensation you’ll receive after deducting any applicable fees or deductibles.

If your car is stolen and you have comprehensive insurance, the amount you’ll receive is based on the car’s actual cash value (ACV). The ACV is the market value of your car at the time of the theft. It takes into account what the car was worth based on its brand, model, age, mileage, condition, and any previous accidents or repairs. Remember, this value is not the same as the car’s original purchase price or its current retail price.

From the ACV, the insurance company will subtract your deductible, which is the amount you agreed to pay out-of-pocket when you set up your policy. Insurance companies may also factor in depreciation, which is the reduction in the car's value over time. Older vehicles with higher mileage or wear and tear may have lower ACV compared to newer models. Some policies may offer additional options, such as gap insurance, which covers the difference if you owe more on a car loan than the car's ACV. If you don’t have gap insurance, you’ll need to pay the remaining balance on the loan yourself if the ACV doesn’t cover it.

Dealing with car theft can be stressful, especially if you don’t have insurance. Comprehensive insurance helps cover part of the loss, giving you some financial support. The payout amount depends on your car’s value, but it’s better than losing everything. 

Without insurance, you risk losing both your car and the money you’ve invested in it. Luckily, here at AutoDeal.com.ph, we can hook you up with easy and hassle-free comprehensive insurance policies. All you have to do is visit the insurance page on our website, enter your information, and get official quotes from our insurance partners. 

Furthermore, if you’re planning to buy a car soon, visit the AutoDeal Car Guide to compare models and find the one that suits your needs. Once you’ve made your choice, use the ‘Get Quote’ button to connect with sales agents quickly and easily.