Lost your vehicle? Here’s what you need to do for a smooth insurance claim

Things only seem improbable until they happen to you, and the same can be said for almost everyone who has had their car stolen. Car theft can leave a big financial hole in your wallet, and it can cause even more damage to your daily life. Cars are an integral part of our lives. From commuting to casual driving, cars have become a necessity. So how should you prepare and what should you do if your car is lost or stolen? 

For people worrying about their cars getting stolen, here’s something uplifting; auto theft rates have been declining, and in 2020, around 720,000 cars were stolen. While it might sound a lot, the number once stood at around 1.8 million in the 1990s.

Depending on the state you are in, the probability of your car getting stolen or the police finding it back might vary. But the statistics are for the masses, and in no way there’s a guarantee that thieves will spare your car. So the best way to avoid such dilemmas is by getting proper car insurance against theft. 

Comprehensive Auto Insurance

You may have heard of liability coverage, or collision coverage, but comprehensive coverage is the auto insurance policy that will reimburse you if your car is stolen, or damaged during a theft attempt. The cost of comprehensive coverage is also not too much, especially if you look at the coverage it provides. Look for your state’s best car insurance companies to get the best rates for this policy.

For example, if you live in Texas, then search for the cheapest car insurance in Texas and find the best auto insurance company that offers great coverage, at a great price. Also, make sure to check if they have good reviews and a faster claim processing time on average. 

Having comprehensive coverage is necessary to cover the costs of your car theft. Along with theft, this policy also covers the cost of repairs if your car is damaged by natural calamities such as floods, fires, earthquakes, projectile damage, riots, vandalism, etc. 

What Comprehensive Coverage Pays

One must wonder what would happen if you claim after their car has been stolen. How much money would you get back if you claim your comprehensive coverage policy? It depends on the make and model of your car and the current market value of the car.

When you file an insurance claim, the auto insurance company will look at the market value of your car and offer you the actual cash value. This is the amount of money you’d get if you sold your car. The amount they offer can seem a bit low, and you can talk to your insurer about changing the amount. It is worth noting that as your car ages, the actual cash value of it goes down. This means older cars, if stolen, will get you much lower claim amounts.

Now that we know what you’d get after claiming your comprehensive insurance policy, let’s look at the step-by-step process of making an insurance claim for a stolen or lost car. 

Report the Authorities

Whether your car was stolen, or it gets lost, if you want to make an insurance claim, you need to report the theft to the authorities. There are many cases when people just hide the car and make an insurance claim. So to avoid such insurance fraud, insurers need you to have an official police report to prove the legitimacy of the theft. 

So the moment you find out that your car is missing, call the cops and describe all the details about the car. They might need the license plate number, VIN, color, appearance, and other details to start an investigation. Get it done as soon as possible and then move to the next step. 

Contact your Insurance Company

With your police report ready, contact your auto insurance company and tell them about the theft. Then proceed and claim your comprehensive policy. It can be either done through your smartphone (app) or just by contacting your insurance agent or visiting the insurance company. 

The claim process verification is what takes the most time, and you need to be ready with all the information the auto insurers will need to process your claim and get you your claim amount. 

Claim Verification

The auto insurance company will send someone to get more details. The insurance agent will ask about the details of the theft. They might ask when was the last time you saw the car, who else has the access to the car keys, who drove the car the last time, and some other questions that might seem a bit intrusive. 

This scrutinizing question session is to make sure that the claim is legit and that there has been an actual theft. Make sure that you give all the details correctly. Do not hide anything, keep everything transparent. The faster this process is done, the faster your claim will be processed. 

Receiving the Claim Money

After the insurance agent has done the verification and everything fits with no sign of possible insurance fraud, the insurance company will start the internal process and you’ll get your claim amount in about seven days. Some companies might take more time to process the claim, while some might send you the money the very next day.

Things to Note

Comprehensive coverage does not cover your personal belongings that might get stolen along with the car. You need to claim your renters or homeowners policy for that. 

The auto insurance company usually waits for 72 hours before they process the claim because of the possibility of finding the stolen vehicle. If your claim has been processed and you’ve received the money and your car is found, it will be the insurance company’s property. You can choose to buy it back from them or keep the money.