There are car thieves everywhere, and you never know if or when they will find your car and decide to steal it. If this happens to you, hopefully you have the right type of car insurance to cover the claim, and there are several things to understand about car insurance claims for stolen vehicles.
Collision does not cover theft of vehicles but comprehensive does
With car insurance, there are two main types of coverages most people have: collision and comprehensive coverage. Both of these types of coverage are vital. The problem is that collision coverage only covers losses and damages from accidents you have with your car. It does not cover damages from theft. Comprehensive insurance, on the other hand, does cover the damages you would experience from car theft, and that is one of the reasons having comprehensive insurance is so important.
Your policy is likely to cover a rental car and repairs for the car if the car is found
If your car gets stolen, it can often take a while to find it, and there are times when your car is never recovered. After your car is stolen, your insurance will cover the costs of renting a car while you wait for the police to locate your car. Additionally, if they find your car, it will likely have some damages from the event of being stolen. If this is the case, your comprehensive insurance would pay for the costs of the repairs your car needs after your car is recovered.
Your policy will cover the value of the car if it is not located
The other thing to understand is that your comprehensive coverage will provide compensation for you if your car is never found. The amount of money your insurance company will pay is the fair market value of your car at the time it was stolen. When you receive this money, you would have to pay off the loan you had on the car first. If there is any money left, you would get to keep it. Without comprehensive insurance coverage, you would not receive any compensation for your car if your car is ever stolen.
If you do not currently have comprehensive coverage on your insurance policy, you should consider adding it soon. If you would like a quote for car insurance coverage, you can get one by talking to services such as Budget Insurance Offices Inc.
Share