Does car insurance cover theft? the answer is Yes, the insurance policy provides a plan for stolen cars or the part of the car that is stolen. A comprehensive coverage plan helps the policyholder to cover the cost against stolen or theft. It has a deductible which the policyholder has to pay from his own pocket. A comprehensive coverage plan gives actual car costs. There is another policy called third-party fire and theft, it is an additional policy that covers third-party car theft or fire damage.
DOES CAR INSURANCE COVER THEFT?
If you have this question in your mind then the answer is yes. Car insurance cover theft, there are some policies which give this facility to their policyholder.
Car theft is much common in some countries. It’s not just about the whole car even parts of a car that are expensive are theft. By observing such things in the society, insurance companies designed such kind of coverage plan which not only give coverage from damage and medical expense but also help the policyholder to recover cost if his car is stolen or theft.
Now the second question comes to mind that which policy is better for theft?
If we take a look at different coverage plans, Liability insurance, and collision insurance helps to cover from damage cost due to accident either with a car or with any object it also covers medical expenses but it doesn’t cover theft. On the other hand, a comprehensive insurance plan helps the insurer to cover from stolen or theft. This policy gives protection against any loss due to natural disaster or by the will of God.
Now I described to you what comprehensive coverage pan is.
Comprehensive coverage policy
Comprehensive coverage helps you to cover damage cost due to natural disasters like a tornado, dented by a run-in with a deer, spray-painted by a vandal, damaged by a break-in, or crushed by a collapsing garage, stolen or theft, among other causes. Comprehensive coverage covers the damage of your car other than collision insurance
Like liability insurance, it is not mandatory to purchase comprehensive coverage but if a policyholder finances his car or leasing his car it would be compulsory to have this insurance policy, however, like collision coverage comprehensive insurance has also deductibles which the policyholder have to pay out of his pocket.
You can also get a comprehensive coverage plan with a liability insurance plan. It covers the actual cash value (ACV) of your vehicle. One thing which is important to keep in mind that comprehensive coverage doesn’t pay for the rental vehicle. For that, you’d need rental reimbursement coverage on your car insurance policy. This optional coverage helps pay for transportation expenses, such as a rental car or public transit fare, during a covered insurance claim.
What does a comprehensive coverage policy cover?
- Natural disaster
- Damage by the car accident
- Falling object
- A civil disturbance (like a riot that results in damage or destruction of your car)
What does comprehensive coverage policy not cover?
- Damage of car due to strike with another person’s car
- You or your passenger medical expense after the accident
- Damage to the car due to collision
How does a comprehensive coverage plan work for a stolen car?
A comprehensive coverage plan has deductibles and coverage limits. A deductible is an amount that you have to pay out of your pocket and the coverage limit is the maximum amount of money which you get out of your coverage claim.
For example, you have a comprehensive coverage plan of $10,000 and its deductible amount is $1,000, if your car is stolen and you file a claim then you get $9,000 (actual amount- deductibles).
$10,000 - $1,000 = $9,000
Does comprehensive car insurance cover steal parts?
A comprehensive coverage plan helps to replace stolen parts of the car it also helps to cover the cost of damaged parts of the car but it doesn’t pay any cost for custom parts that you have installed in your car like high-tech volume stereo.
Does a comprehensive coverage plan cover theft of personal items
A comprehensive coverage plan is just responsible for a car stolen and its part damage or theft doesn’t cover the cost of your items for that you need to purchase an additional coverage plan for personal items. A personal property coverage plan is the pan that helps to cover the cost of stolen personal items.
Summary: comprehensive car insurance policy is the best policy for theft and the stolen car. It covers the actual costs if the car is damaged or stolen. The comprehensive plan bears the cost of damage part of a car if the parts are installed by default, custom parts damage, or the other personal items are not covered by the comprehensive insurance plan for that there is another addition plan which compensates it. A comprehensive plan has a deductible amount that the policyholder has to pay from his pocket.
Steps to claim insurance in case of theft of your car
To claim for car insurance in case of theft, policyholders have to follow the following steps.
Suppose, a person’s car is stolen, the first step which he should do is go to the police station and file (FIR) first information report of your car against theft. Report to the police station is very important. FIR is the evidence that your car is actually stolen and it also works in a further procedure to claim for insurance.
An intimidation regarding the theft of the vehicle has to be informed to the RTO where the car was registered. Form numbers 28, 29, 30, and 35 need to be filled and submitted. In this method, the stolen vehicle cannot be re-registered under the RTO.
The police will investigate for 90 days. If it is unable to trace your car within that period, then it will issue a non-traceable report declaring that they cannot track your vehicle.
The matter will then be carried over to the court which will issue a No-Objection Certificate (NOC) declaring that the case can be transferred over to the insurance company, who can carry out the necessary procedures.
After the NOC has been issued, the insurance company will then start an investigation from its side. In case the insurance company is unable to trace your car, it initiates the claim settlement process. Most of the insurance companies have a responsive claim settlement team that administers and guides in critical times. Another important indicator is the Claim Settlement Ratio, which evaluates the reliability of an insurance company. After the police submit the final non-traceable report and the claim gets approved, the car owner must submit his copy of registration certificates, driving license, and car keys to the insurance company.
Documents Required for Claiming Insurance in Case of Theft of Your Car
To strengthen your claim application, it must be supported with relevant documentation. This includes the following.
- The original FIR copy filed at the police station
- Car registration certificates
- Your car insurance policy documents
- NOC (No Objection Certificate)
- The non-traceable report issued by the police
- The duly signed claimed form
- The Registration Certificate of the car
- Car invoice
- Valid driving license
- Road tax receipt
- Original keys of the car
- RTO forms duly signed, along with other necessary forms like 28, 29, 30 and 35
If you don’t have original documents then submit a photocopy of all the document which has been mentioned above. If you have a photograph of your car then submit it as well, a photograph can make your work rapid and smooth.
Third-party fire and theft insurance cover
Almost in every state in the world car insurance is mandatory. It is a liability on drivers that if they got any kind of damage due to any reason, they not only compensate their loss but also third-party loss.
Third-party fire and theft insurance are one of the most popular insurance in the UK. It is also known as TPFT.
TPFT policy is not as extensive as a comprehensive insurance policy but it is better than the third-party only cover (TPO). TPTF provides more protection than TPO.
What does third party fire and theft cover?
Third-party fire and theft cover gives all the protection which third party only cover gives, the additional protection TPTF gives is, it covers both damage fire and theft of the policyholder car.
A good TPTF covers the following.
Injuries to a person in another car
Injuries to a person in your car
Damage to another person’s property and vehicle
Fire damage (accident and intentional)
There may be some limits and exclusions within each TPFT policy, so be sure to check the terms of your car insurance to avoid any unpleasant surprises when it comes to making a claim.
This policy is good for those who want slightly more protection. Those who have a cheap car and their damage cost are also not very expensive then this policy helps them to cover their damage and save their money as well.
What does TPTF not covered?
If you are involved in a car accident or road traffic collision, your TPFT cover is unlikely to pay out if:
Your car is damaged in an accident that was your fault.
Your windscreen was damaged.
Your vehicle has been stolen but it was not parked in a sensible place or secured properly.
You are injured and don’t have separate personal injury cover in place (you will need to pay for your own medical and legal costs).
Your vehicle has been damaged by a fire that was caused by mechanical, electrical, electronic, or technical breakdowns or failures.
Any of your possessions are damaged.
Summary: Third party fire and theft cover help to cover the cost of fire damage and theft. It is not as extensive as comprehensive policy but for those who want cheap policy then this can be a good option. It not only covers the cost of third-party damage due to fire and theft but also policyholders as well if the policyholder would not be guilty.
1. Does insurance cover car fire?
Yes, comprehensive insurance covers car fire. Comprehensive insurance helps to cover natural disasters like a tornado, hurricane, fire, etc. it replaces your car if the damage is horrible. Comprehensive coverage also helps to repair or replace third party car if the policyholder is guilty.
2. Does car insurer cover aftermarket parts?
You may or may not be covered for aftermarket parts or vehicle modifications, so you must check with your insurer to be clear of any limitations or exclusions in your policy. If you have already modified your car in any way, be sure to notify your insurer today, so you can learn whether or not your current policy is suitable for your needs.
3. Why car insurer doesn’t cover aftermarket parts?
If you don’t notify about the market parts which you have installed after any damage then there is a possibility that the insurer denies your claim. For this, you need an additional plan.
4. Does insurance cover steal cars if keys left?
Comprehensive coverage helps to repair or replace the stolen car, it doesn’t matter whether the keys are left inside the car or not so, comprehensive coverage does cover a stolen car even if you left your keys inside.
5. Does insurance cover break keys?
If your car key is lost or stolen, you may be able to claim for the cost of a replacement on your car insurance policy. Some insurers offer key cover as standard on their car insurance policies. With other insurers, you’ll only get cover for lost and stolen keys with an upgraded policy, or as an add-on.
6. What two types of coverage must a vehicle have?
In every state that requires you to have car insurance, you must have a minimum amount of liability insurance, the amount of which varies by state. Liability comprises both bodily injury liability and property damage liability.
7. What is the most important car insurance?
The most important coverage has to be your state’s minimum liability and property damage coverage.
8. What is the cheapest type of car insurance?
Third-party insurance is the minimum level of insurance you need by law. You’d expect third party only insurance to be the cheapest option as it offers the least protection of all the types of cover available, so you might be surprised to learn otherwise.
9. What is the advantage of zero depreciation car insurance?
Zero depreciation cover or ‘zero dep’ policy, offers complete coverage for your car against damages caused due to an accident without factoring in depreciation. It means if your car gets damaged following a collision, no depreciation is deducted from the coverage of any body parts of the car excluding wheels and batteries.
10. What should I get from a third party or comprehensive?
In general, a comprehensive car insurance policy will cover you for a wide range of damages, injuries, and loss to your passengers, your vehicle, and other property. Third-party car insurance is more restrictive, covering damage to other vehicles and their passengers, but typically not much else.
A comprehensive coverage plan helps customers to ensure their car against theft. it repairs or replaces the car in case of damage. it also gives coverage if the parts of the car have been stolen or theft. A comprehensive insurance policy has a deductible which the policyholder has to pay from his own pocket. another policy called TPTF which is an additional plan. It has some limits and exclusions within each TPFT policy, so it is better to check the terms of your car insurance to avoid any unpleasant surprises when it comes to making a claim.