Does Car Insurance Cover Theft?
Published On Aug 26, 2022 11:00 AM By InsuranceDekho
Does Car Insurance Cover Theft?
Table of Contents
The theft of a car is a terrible event that leaves victims uneasy and concerned. The fact that your auto insurance covers theft may be the one positive aspect of this otherwise difficult situation. The specific terms and conditions of the coverage you've decided to purchase will determine if your policy covers vehicle theft, even though many different forms of auto insurance do.
Additionally, keep in mind that even if your insurance covers vehicle theft, the stolen car's contents are not covered. Vehicle theft is a horrific incident that causes victims to feel nervous and worried. The only thing good about an otherwise tough scenario is that your motor insurance covers theft. Additionally, take into account that even though your insurance policy covers automobile theft, the contents of the stolen vehicles are not protected. To find about car insurance theft, read on.
What Is The Coverage Under A Car Insurance?
Leading car insurance companies give two different types of insurance policies: package plans and liability-alone policies (third parties) (comprehensive). Up to a particular limit, third-party damages are covered by auto insurance carriers. Damages from personal accidents and automobile theft are also covered with complete coverage. Additionally, the plan provides no-claim bonus (NCB) protection, add-on depreciation coverage, etc.
If your car is stolen, some plans may provide you with a daily allowance, which means they will cover the cost of a rental car for the duration of the insurance. Within 24 hours after the theft of your automobile, your insurance contract can also include a courtesy or hire car option.
Additionally, keep in mind that in some plans, the no claim bonus covers partial theft of accessories. This implies that even if some automotive accessories are stolen (for a detailed list, please refer to the policy wordings), you may still make an insurance claim for such items without having it influence your no-claim bonus.
What Is The Amount Of Compensation Provided By Your Insurance Provider In Case Of Theft?
If your stolen automobile is not recovered, the insurance provider will provide a payment equivalent to its current market value, or Insured Declared Value, or IDV. Only individuals with personal damage or comprehensive auto insurance are eligible for coverage in this circumstance. If you don't have these protections, your insurance company won't cover anything if your car is stolen. You must make an insurance claim for auto theft if your vehicle has been taken. First, you would need to report the occurrence to the police and the insurance provider. A representative of the insurance will walk you through every step of the procedure.
What Are The Things That A Person Should Remember While Claiming For Theft?
Following are the things that a person should do while claiming theft -
- You receive a no-trace report or untraced automobile report from the police declaring that it is impossible to find the insured vehicle. The release of this report can take a month. Since it is a crucial document, the likelihood that your claim request will be denied if this report is absent is considerable.
- Additionally, you'd have to go straight to the road tax officer's office and get a duplicate RC book.
- If you financed the acquisition of your automobile, the insurance provider will cover the payout to the lender, and you'll be responsible for the balance.
Although you probably wouldn't expect to have your automobile stolen, it's always a good idea to be ready for the situation knowing what to do. Make sure your auto insurance is current, and study the fine print to ensure you have the appropriate car insurance add-ons in order to be protected from any unforeseen circumstances.
Compare & Buy the Best Car Insurance Policy
Can You Claim Car Insurance With A Temporary Registration Number?