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Does Car Insurance Cover Car Theft?

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Theft cases are increasing day by day. So, it is important to be prepared for such incidents and get insurance that covers all such cases. Vehicle theft is a terrible incident that causes victims to feel anxious and worried. The only good thing about an otherwise such scenario is that your motor insurance covers theft. Also, one needs to keep in mind that even though the insurance policy covers automobile theft, the contents of the stolen vehicles are not protected. 

What is the Coverage under a Car Insurance?

Generally, insurance companies give two different kinds of car insurance policies that include package plans and liability-alone policies (third parties) (comprehensive). Up to a certain limit, third-party impairments are covered by auto insurance carriers. Also, damages from personal accidents and automobile theft are covered with whole coverage. Also, there are some plans that provide no-claim bonus (NCB) protection, add-on depreciation coverage, and many more. There are some plans that may provide you with a daily allowance, in case of a car robbery. This means they will cover the expense of a rental car for the duration of the insurance. Also, your insurance contract can have courtesy or hire car option, within 24 hours after the theft of your automobile. Additionally, one needs to also keep in mind that in some plans, the no-claim bonus covers only the partial theft of accessories. This means that even if some automotive accessories are stolen, one may still make an insurance claim for such items without affecting the no-claim bonus.

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Things to Remember When Making a Car Insurance Claim

  • If one receives a no-trace report or untraced automobile report from the police stating that it is impossible to locate the insured vehicle. The release of such a report can take a month. The chance that your claim request will be denied if the report is absent is considerable since it is a vital document that is required.
  • Also, one would have to go straight to the road tax officer’s office and get a duplicate RC book.
  • If one financed the acquisition of their automobile, then the insurance provider will cover the payout to the lender, and one will be accountable for the balance.

How to File a Claim for Stolen Car? 

Having a package policy or car insurance can be significant, in case the car gets stolen. But, one needs to file a car insurance claim to get the maximum value of their car.

Steps one should follow to proceed:

  1. File an FIR

The foremost step is to inform the police immediately the moment one finds out that their car has been stolen. Lodging an FIR early will be beneficial in two ways:

  • First, it will help one get the claim accepted by the insurance firm.
  • Second, their vehicle may also get recovered sooner.
  1. Inform the insurance provider

The second most thing to do is to fill and sign the claim form provided by the insurance firm. Also, one can attach the FIR as one submit the form. Steps 1 and 2 should be executed simultaneously. An FIR is not compulsory at the time of informing the insurance company, but it is needed when one has to submit the car insurance claim form.

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  1. Notify the RTO

It is advised that one inform the Regional Transport Office (RTO) about the theft of their car to protect themselves from any criminal activity conducted using their vehicle. In case your car is involved in an accident or used for illegal activity, you will be in the clear. Also, one will need to furnish the vehicle’s Registration Certificate (RC), a copy of the FIR, a copy of their driver’s license, and the claim form.

  1. Keep the following documents ready
  • Copy of police FIR
  • Copy of vehicle’s RC
  • Filled and signed claim form
  • Copy of driver’s license
  • Copy of policy documents
  • Original keys of the car
  • Signed RTO transfer papers 
  • If there is an ongoing car loan, NOC and form 35 from the financier

Conclusion

One invests a large sum of money in the purchase of their car, so one must ensure that they protect it in the best way they can. In India, it is compulsory for all car owners to have insurance. However, if one wants to give their car additional protection, they can consider buying a comprehensive insurance cover. Such covers will ensure complete protection in case of damages that may be caused by you as well as third-party liabilities. Also, it is important to ensure the auto insurance is updated.

Author Bio: Smriti Gala works as a Digital Marketing Manager with Coverfox. As her life turned upside down when COVID severely afflicted her family members, Smriti decided to dedicate her expertise to informing and educating the masses about the importance of health insurance. When she is not actively writing enlightening content, our ‘monk marketer’ likes to meditate, meet new people and explore less traveled territories.

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