Things To Know About Theft Cover In Car Insurance
A comprehensive car insurance policy will typically cover car theft as well as the cost of repairs caused by break-ins. However, it comes with an extra fee, and in the event of a theft claim, the amount insured would be equal to the value of the policyholder's stolen car.
Car theft is a major crime in many parts of the world. Especially in India, car thefts are rampant in certain regions. Buying a car involves a major financial commitment for many car owners. Some may have taken a loan while others use their life’s savings to buy a car. When a car theft happens, it leaves families in a financial conundrum. In such a situation, a theft cover as part of your car insurance policy comes in handy. This article explores how buying a theft cover benefits car insurance policyholders in the long run, what procedures one should follow in the event of a theft, and what the claim filing process comprises in case of a car theft.
Types of Car Insurance Coverage
One of the most crucial steps in your car insurance journey is understanding the different types of coverage included in car insurance policies.
Comprehensive Coverage: A policy with comprehensive coverage enables policyholders to claim money for various scenarios, including theft and third-party liability coverage. Comprehensive coverage offers financial assistance for vehicle damage due to break-ins such as smashed windows or broken locks.If your car is stolen, comprehensive coverage will typically compensate you up to the Insured Declared Value (IDV) of your vehicle. It may also be a good idea to include a key replacement cover to compensate for lost keys.
Liability Insurance: Third-party insurance is the most basic protection included in any car insurance policy. It includes any bodily injury or property damage cover inflicted by policyholders on a third party. However, theft coverage is not part of such car insurance policies.
Standalone Own Damage Policy: A standalone policy helps policyholders bear the expenses for damages to their vehicles. It also includes theft cover, without the need for a third-party liability coverage.
What Does Theft Cover Include?
Stolen Vehicle: If your car is stolen, comprehensive or standalone own damage policies will typically cover the loss based on the IDV, which reflects the current market value of your car.
Damage from Break-ins: Repair costs for damages incurred during a break-in are covered under comprehensive policies. This includes expenses for fixing broken locks, windows, or ignition systems.
Personal Belongings: It's important to note that personal items stolen from your vehicle are usually not covered by auto insurance. Instead, you may need to rely on homeowners or renters insurance for such losses. A personal belongings add-on is an additional coverage given for personal items such as clothes, mobile phones, suitcase, etc. which may have been in the car at the time of a theft. This add-on can help you recover the cost of the lost items in the event of a car-theft.
Policy Exclusions
In addition to the above points, policyholders must also take into account their car insurance policy exclusions. This means that getting to understand what is not included in your car insurance policy is of utmost importance as it comes in handy at the time of filing a claim. Policy exclusions usually include personal belongings and certain other things, a personal belongings add-on can help you to financially compensate for the loss of any personal items. Understanding other such exclusions can help you to find out whether there are add-ons that can help with financial recovery of such lost items.
The Claims Process for Theft
In case of theft, follow these steps to file a claim:
Report to Authorities
Immediately report the theft to the police and obtain a copy of the police report, as this will be required by your insurance company. Make sure that you do not make changes to the scene of crime before the police arrive. This can meddle with the insurance company’s investigation process.
Notify Your Insurer
Contact your insurance provider as soon as possible to start the claims process. Provide them with the necessary documentation, including the police report and details about the incident. Ensure that you possess the following documents before filing a claim.
Original Car Theft Insurance Policy Document: This confirms your coverage details.
First Information Report (FIR): A copy of the FIR filed with the police is crucial as it serves as official documentation of the theft.
Claim Form: A filled and signed claim form provided by your insurance company.
Registration Certificate (RC) of the Car: This proves ownership and registration details of your vehicle.
Sales Invoice and Road Tax Receipt: These documents provide proof of purchase and tax payments related to your vehicle.
Transfer Papers from RTO: Required if you have informed the Regional Transport Office about the theft.
Non-Traceable Report from Police: If your vehicle is not recovered within a specific period, this report certifies that it is untraceable.
Indemnity Bond: A legal document that may be required by some insurers, stating that you will not hold them liable for any issues arising from the claim.
Subrogation Letter: This document allows your insurer to pursue recovery from third parties if applicable.
Original Set of Keys: Typically, insurers require the original keys to process the claim.
Driving License Copy: A copy of your valid driving license for identity verification.
Any Additional Documents Required by Your Insurer: This may include forms specific to your insurance provider or additional identification documents.
Claim Assessment
An insurance representative will guide you through the claim assessment process, which may involve evaluating the IDV and current market value of your vehicle. Ensure that you have all the necessary documentation when the representative arrives for evaluation.
Tips for Preventing Car Theft
Although no one can To minimize the risk of theft, consider these preventive measures:
- Always park in well-lit areas.
- Ensure all doors and windows are securely locked.
- Avoid leaving valuables in plain sight inside the vehicle.
- Consider installing security systems or anti-theft devices in your car.
Conclusion
Understanding theft cover in car insurance is essential for every vehicle owner. Comprehensive coverage provides peace of mind by protecting against financial losses due to theft and damages from break-ins. Always review your policy details and consider additional coverage options if necessary. By taking proactive steps to secure your vehicle and being informed about your insurance options, you can better protect yourself against potential theft-related losses.
