Will Your Insurance Company Cover The Theft Of Your Car?
Imagine you are passionate about cars and take great pride in knowing the ins and outs of all makes and models. That passion led you to make an incredible investment in something that you truly love.
As a testament to your commitment to your vehicle, you never miss a scheduled oil change or tire check as you want to keep your prized possession running for many years to come. However, one unfortunate day, it gets stolen - something that no car owner would wish to happen. The loss of your car was not only material but also emotional, leaving you feeling robbed of the memories and attachment you felt for it.
Despite increased awareness and prevention efforts, car theft continues to be a major problem in our society - costing owners both monetarily and emotionally. Your car is vulnerable to these circumstances, which is why you should make sure you protect it with a suitable insurance policy. Having the right policy in place ensures that you're not left with out-of-pocket costs if anything happens to your car unexpectedly.
Will car insurance provide you with financial protection if your car is stolen? Let's find out.
What Is Car Insurance?
Car insurance is a contract between you and the insurance company wherein the insurance company agrees to cover you financially against any losses or damages that may happen to your car in exchange for the premium amount that you pay to the insurance company. In general, car insurance is of two types:
This policy provides you with comprehensive coverage. It covers you, your car, and any damages that are caused to a third party or their property.
2️⃣Third-Party Liability-Only Policy
It will cover only damages or injuries caused to a third party or their property. Any damages sustained by you or your car due to an accident will not be covered by such policies.
As per RTA rules, third-party insurance is mandatory, and driving without valid insurance is an offence.
Is Theft Covered By Car Insurance?
Yes, if you have a comprehensive policy, your insurance company will cover you financially in case your vehicle is stolen.
But, does it cover every type of theft? Let’s see!
Types Of Theft Covered By Car Insurance
There are two types of theft covered by car insurance -
1️⃣Theft of your car
2️⃣Theft of your belongings inside your car
You will, however, need an extra cover to protect your personal belongings in case they get stolen from or with your car. A personal belonging cover will provide financial protection if personal belongings such as a laptop, smartphone, etc. are stolen from your car or are stolen along with your car.
Let’s understand the concept with some scenarios -
Scenario 1: Sohan has a comprehensive car insurance policy. He wakes up one morning to find that his car was stolen. Fortunately, he had not kept any of his personal belongings in his car. Now, since he has a comprehensive insurance policy, he will be covered for the loss of his car.
👉What if Sohan has a third-party liability-only policy?
The insurance company would not provide coverage for Sohan in that case because his policy doesn't cover damage or loss incurred by his vehicle.
Scenario 2: Sohan had kept his laptop inside his car - which also gets stolen with the car. His comprehensive policy will cover the theft of his vehicle and if he has an additional personal belonging cover, it will cover the loss of his laptop.
👉What if Sohan does not have a personal belonging cover added to his policy?
If Sohan did not add a personal belonging cover to his policy at the time of purchase, the insurer will not provide coverage for his stolen laptop.
Scenario 3: Let's assume Sohan parked the car on the side of the road and went to a supermarket. When he returned to his car, he realised that its window was broken and that the bag containing his laptop was missing. The damages caused to his car will be covered by his car insurance policy. In case he has a personal belonging cover added to the policy, his stolen personal items will be covered by it.
When Will The Insurance Company Not Cover The Theft?
These are some circumstances for which the insurer will not provide coverage in case of theft -
1️⃣The car insurance policy will not provide coverage if your vehicle was stolen due to your negligence
For instance, Ahmed forgets to lock his car before going to a movie theatre. He returns back only to find that his car has been stolen. In this case, the policy will not provide coverage.
2️⃣No coverage will be provided if a car parked in an unsafe area gets stolen.
3️⃣If the car was stolen because its window was left open, no coverage will be provided.
For example, Nagma went to a shop to buy some groceries, leaving her car window open. She returned back only to find that her car was missing. In this case, her policy will not provide coverage
4️⃣The policy will not provide coverage if you have not obtained a police report for the theft case.
5️⃣The policy will not provide coverage if you fail to inform the police on time about the theft or if there is a delay in raising a claim with the insurance company.
6️⃣The policy will not cover if the personal belongings in the car were kept in the convertible rather than the locked boot.
7️⃣No coverage will be provided for the loss of personal belongings if the police report does not include a detailed list of the personal belongings that were stolen from the car.
For example, Raiza parked her vehicle on the road and went to meet her friend. When she returned, she found that her smartphone, laptop, and tablet had been stolen.
She immediately contacted the police and informed them of the entire situation. She, however, failed to mention the tablet when she listed the missing items, so the police report only included the smartphone and laptop. Therefore, the insurer will cover her smartphone and laptop, but not her tablet, since the police report does not mention it.
8️⃣Some insurance companies will also have a list of personal belongings that they will not cover. This may vary across insurers.
For example, some insurers will not cover the loss of documents, money, jewellery, etc. Before purchasing a policy, you must go through it to be aware of what is covered and what is not.
How To Raise A Theft Claim?
1. Contacting The Police
Your first step should be to notify the police immediately. Make sure you provide them with all the details regarding the incident as well as the details of any personal items that were stolen from the car. Also, obtain a police report that includes all the details about the theft.
1.Inform the police as soon as you discover that your car is missing as any delay could lead to issues with your claim.
2. Informing The RTA
●Should you lose your car registration documents along with the car, you will need to notify the RTA and get duplicate copies so you can submit them to your insurer for the claim.
●Furthermore, it is always advisable to notify the RTA if your vehicle is stolen, so you will not be held responsible for any criminal activity associated with your vehicle.
3.Informing The Insurance Company
Once you get the police report, call and inform your insurance company about the theft. Provide it with all the details regarding the theft. All documents related to the claim should be submitted to the insurance company as well.
Here are the documents you'll need to submit:
➔An original copy of the police report
➔Car registration documents
➔Original key sets of your car
➔Any additional documents as requested by your insurance company.
4.Assessment & Settlement
Insurance companies will verify all the documents once they receive them and may require additional documents if necessary. After all your documents are verified and your vehicle is found to be untraceable, your insurance company will settle your claim.
Car thefts are unfortunately a common occurrence. However, with the help of car insurance, you can ensure that at least you can cover the financial loss associated with it. And, you will need a personal belonging cover if you are someone who carries expensive gadgets in your car, such as laptops, smartphones, and tablets. This will give you peace of mind and provide assurance that your valuable investments are well-protected.