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Do All Car Insurers Provide A Replacement for Damaged Or Stolen Car?

Published On Aug 09, 2022 11:00 AM By InsuranceDekho

Do All Car Insurers Provide A Replacement for Damaged Or Stolen Car?

In India, vehicle thefts are becoming fairly widespread and occur in all major cities. Rarely is a stolen automobile found, which causes the owner severe financial difficulty. Not all insurance plans offer coverage for automobiles that have been stolen. The only damages covered by third-party auto insurance coverage are those brought on by traffic accidents.

However, a comprehensive auto insurance plan also includes coverage for car theft and personal injury claims. Depreciation cover, No claim bonus protection, and other add-ons are also included. Some comprehensive auto insurance plans will pay for transportation expenses on a daily basis if the automobile is stolen. You can hire a car with the allowance for your daily journey. Additionally, some insurance providers offer a no-claim benefit for accessory theft. To know more about replacements for cars, read on.

Car Insurance - Financial Coverage

Automobile insurance is important since it protects against loss or damage to the covered car in the case of an unforeseeable incident. Third-party insurance must be purchased in India in accordance with the Motor Vehicle Act. To protect against all the dangers, though, it falls short. To protect yourself from third-party liabilities as well as your own damages (OD), you may get comprehensive auto insurance coverage.

Comprehensive coverage covers damage to your covered car from accidents, fires, theft, natural disasters, and man-made catastrophes. This coverage will protect you if your automobile is ever engaged in an accident which results in harm or loss to a third party's property or life.

How to File a Theft Claim for Stolen Cars?

When a theft occurs, the insurance holder should file a claim by phoning the insurance company's customer service line. They will file the claim, offer you help with the claims procedure, and give you a claim reference number for future use. If your car has been taken, you should also visit the closest police station and submit a FIR. The majority of suppliers provide a time frame for the same.

Replacement Of Car

A complete policy includes coverage for natural disasters, man-made disasters, theft, fire, and accident loss to your covered vehicle. If your car is ever involved in an accident that causes damage or loss to a third party's property or life, this policy will safeguard you.

Imagine that the brand-new vehicle you have parked close to your home is stolen. Well, in this case, the "Return to Invoice" add-on cover is useful. Within three years after the date you purchased the automobile, you may utilize the advantages of this coverage. In the event that your covered vehicle is stolen or irreparably destroyed, Return to Invoice Cover will reimburse you for its on-road value.

How is ‘Return To Invoice’ Calculated?

Car replacement fees are calculated based on the vehicle's ex-showroom price, sale processing fee, and any applicable road taxes that are all included in the invoiced automobile price.

Who Should Opt For - ‘Return To Invoice’?

New automobile owners are the greatest candidates for this add-on protection. recognising that, in the event of theft or complete loss, the brand-new owners require recompense in accordance with the invoiced amount. Your security is not as high with a basic auto insurance policy as it is with this add-on coverage.

How Does This Add-On Cover Work?

Since the percentage of depreciation is charged to the automobile starting on the day of purchase, your regular auto insurance coverage often won't be able to recover the full worth of your vehicle. As a result, you might suffer a large loss. Up until the automobile becomes three years old, your insurance will cover the entire valuation.

Endnotes

The automobile that was taken is regarded as a constructive complete loss. Only the "return to invoice" add-on makes it possible to receive a full refund equal to the amount covered. The ultimate refund will be equal to the car's current market value if this rider is not included. However, it's crucial to have your auto insurance up to current and complete with all necessary add-ons to cover any contingencies.

Also Read: 

What Is IDV And How Is It Determined?

How Many Car Insurance Claims Can Be Filed In A Given Year?

Disclaimer

This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
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