What happens when your car is stolen and then found?
What happens when your car is stolen and then found?
Unfortunately, car theft is an all-too-common occurrence. The stress and disruption of having your vehicle stolen is significant, but it is important to know that there is a good chance of it being recovered. Recent statistics also show that over half of stolen vehicles are eventually recovered.
This article from CheapInsurance.com guides you through the essential steps to take if your car is stolen and what to expect from your insurance company if it is later found, with or without damage.
Immediate Steps to Take After Your Car Is Stolen
Taking the right actions immediately after you discover your car is missing can greatly increase the chances of its recovery and ensure your insurance claim is handled efficiently. It can be helpful to be familiar with common insurance terms.
Step 1: File a Police Report Immediately
As soon as you confirm your car is not just misplaced, call the police to file a stolen vehicle report. This is the most crucial first step. You will need to provide them with key information about your car, including:
- Vehicle Identification Number (VIN)
- License plate number
- Make, model, and year of the car
- Color of the car
- The location and time you last saw your vehicle
- Any distinguishing features or custom parts
Be sure to get a copy of the police report or at least the case number, as your insurance company will require this documentation.
Step 2: Contact Your Insurance Provider Within 24 Hours
Once you have a police report, notify your car insurance company as soon as possible. Even if you don’t have theft coverage, you should still inform your insurer. This protects you from liability if the stolen vehicle is involved in an accident.
When you call your insurer, have the following information ready:
- Your policy number
- The police report number
- A list of any valuables that were inside the car at the time of the theft
- Details about all sets of keys to the vehicle
Your insurer may impose a waiting period, typically 30 days, before paying out a claim for the stolen car, in case it is recovered.
Step 3: Notify Your Lender or Leasing Company
If you have a loan or lease on the stolen vehicle, you must contact your lender or leasing company immediately. You will need to continue making your payments until the matter is resolved with your insurance company. Provide them with your insurance claim number so they can communicate directly with your insurer.
Step 4: Alert the Department of Motor Vehicles (DMV)
It is important to report the theft to your state’s DMV. This helps to prevent any fraudulent activity, such as a thief trying to register the vehicle, and ensures that you are not held responsible for any tickets or violations committed with your car after it was stolen.
What Happens When Your Stolen Car is Recovered?
The moment your car is found, the process changes. Your insurance company’s next steps depend on the condition of the recovered vehicle and the timing of the recovery relative to your claim payout.
1. Recovery Before Insurance Payout
If the police recover your car while your insurance claim is still being processed, your insurance company will halt the claim payment. They will then assess the vehicle for any damage.
- If the car has minor damage: Your insurer will cover the cost of repairs, minus your comprehensive deductible. They will not pay you the full value of the vehicle.
- If the car is totaled: If the cost of repairs exceeds a certain percentage of the car’s actual cash value (ACV), the insurance company will declare it a total loss. They will then pay you the car’s ACV, minus your deductible, as if it were never recovered.
2. Recovery After Insurance Payout
If your insurance company has already paid you for the stolen car, they now legally own the vehicle.
- Ownership transfer: When the claim is paid, your insurance company takes ownership of the vehicle. If it is later recovered, it is their property, not yours. They have the right to sell the car at auction to recoup some of their losses.
- Buyback option: Some insurers may offer you the option to buy the car back from them at its “salvage” value. If you choose this, the car will be issued a salvage title, which can affect its future value and insurability.
Can You Reject a Recovered Car?
You cannot simply “reject” a recovered car and insist on a new one. The insurance company’s obligation is to restore you to your financial position before the loss. If the car can be repaired, they will pay for the repairs. You can only get the full value of the vehicle if it is declared a total loss.
How Do Different Insurance Coverages Handle Theft?
The amount of financial protection you have in a theft scenario depends entirely on your insurance policy.
- Comprehensive coverage: This is the most crucial coverage for vehicle theft. It pays for a stolen car’s replacement (up to its actual cash value) and covers damage from a break-in, vandalism, or any other non-collision incident.
- Gap insurance: This is essential if you have a car loan or lease. It covers the difference between the car’s depreciated value and the amount you still owe on your loan, preventing you from being “upside down” on a car you no longer have.
- Homeowners or renters insurance: Your standard auto policy does not cover personal belongings stolen from your vehicle. You would need to file a separate claim with your homeowners or renters insurance to be compensated for items like a laptop, phone, or tools.
Will Your Insurance Rates Increase?
A comprehensive claim for a stolen vehicle is typically considered a “not-at-fault” claim. This means it is generally less likely to cause a significant premium increase compared to an at-fault collision claim.
However, after a claim, car insurance rates can still rise due to several factors:
- Your insurance company may see you as a higher risk in the future.
- If you had your car stolen in an area with a high rate of auto theft, your rates may increase to reflect that risk.
- A claim on your record, regardless of fault, can sometimes affect your eligibility for a “claims-free” discount.
If you find that your premiums are increasing after a theft, it is always a good idea to shop around and compare quotes from different insurers to ensure you are getting the best value.
This story was produced by CheapInsurance.com and reviewed and distributed by Stacker.
