Among the most common and rising issues of this era is car theft. It is becoming common day by day. There are many reports on a daily basis regarding car theft. Thieves are becoming active and using modern technology to do their work. Car theft can be the most traumatizing thing that can happen to you if you own a car. It can stress a man mentally and financially. It is challenging to bear this loss as you have to face a serious financial crisis. And, if you have no idea what will happen with your insurance premiums you will be more tense. So, in this article, we tell you about the effects of car theft on your insurance premiums and answer your questions regarding insurance and car theft.

Car Insurance covers vehicle theft or not:

The first thing that comes to the mind of a person after his car gets stolen is if my insurance going to cover my loss. The answer to this question is that yes your insurance can cover this loss but it may depend on the type of insurance that you have selected. In some cases, your insurance will not cover your loss of car theft. Basically, minimum liability coverage doesn’t cover car theft. It is the type of insurance that is at least required in most states by the law. So, you need to choose your coverage types wisely.

Types of insurance that cover Car theft: 

Some types of insurance coverage pay you compensation. These are:

Comprehensive coverage:

Comprehensive coverage covers different types of damages occurring to your car. It may include accidents, falling off something on your car, scratches, vandalism, and even theft. It is the type of coverage that helps you by paying for compensation to replace your car. But if you are planning to file a claim about your stolen car, you also have to pay deductibles in this case.

Gap Insurance:

If you have a leased car or have a car on loan, this is a better option for you to buy gap insurance. It helps you to cover the difference between the actual value of the car and the amount you owe. It also covers the loss in case of car theft.

Factors affecting insurance premiums after car theft:

Theft of a car surely affects your future insurance premiums and certain factors are involved in this regard:

Location:

• It is a very common aspect that is noticed in this regard. If you are living in an urban area your insurance premiums are going to go up because urban areas are more densely populated and are at more risk of theft. There is great hustle and bustle in a city and it provides more chances for the theft of your vehicle. 
• And if you are a resident of a rural locality then there are chances that your rates will be lesser than that in the urban areas as rural areas are not populated than urban ones. So they are less susceptible to car theft.
• Moreover, it also considers if any area where crime rates are high and there are more chances of theft has a high rate of insurance.

Claim history:

Your claim history also affects the rates of premium in case of any future claim. If your claim history has any previous claims about car theft your insurance premiums will go up to some extent. But these are not as severe as the claims for at-fault accidents.

Type of vehicle:

Your make and model is also responsible for the increase in your future insurance premiums. Some cars are very expensive and some cars are easier for thieves to target. So, in the case of such vehicles that are at high of theft your insurance premium increases. Insurers always analyze the vehicle and its risks and then decide the rates of insurance premiums.

Insurance policies:

As different insurers have different policies, So it is better to talk to your insurer about these policies in detail and ask about the coverage types, future increases in insurance premiums, and many more. This will clear your all doubts regarding the rise in premiums in the future.

Depreciation value:

You should keep in mind that insurance pays you for the actual value of the car at present. This value calculation includes the lessening of the cost of the car due to wear and tear with time and also due to the present condition of the car. So insurance will compensate you only for this price and it is not equal to the price of a new car and you need to pay money from your pocket to buy a new car.

Ways to avoid car theft:

Insurance can truly provide you with protection and can cover the losses and damages caused to your vehicle but you should also take measures to protect your vehicle in the first place. 

Here are some ways and methods that you can adopt to improve the security of your car:

• Park your car in secure areas where there are cameras installed and guards are available to keep an eye on the garage.
• Close all the windows of the car before leaving it.
• Lock the doors of your car and activate the alarm so that you can hear the alarm if anyone tries to mess with your vehicle.
• Nowadays GPS tracking devices are available that help a person to track their vehicle. It can be helpful to find your car if it gets stolen.
• Lock wheels, steering, and pedals while leaving the car. It prevents the car from moving when these things are locked.
• Modern technology has also helped in stopping the crimes. In this era of technology cameras and alarms with sensors have been invented. They start recording and producing sound whenever they notice motion. This helps you to get a record of every person passing by the vehicle. And the alarm helps you to notice any doubtful actions. 
• Smart keys are now available in the market. These are more immune to theft and are more difficult to unlock than the usual ones. 

These protective measures can prove very helpful in improving the security of your vehicle and reducing the chances of car theft.

Conclusion: 

In case of car theft, car insurance can cover your loss but it is essential to know which type of coverage should be added to your policy. Most often comprehensive coverage and gap insurance can pay you when your car gets stolen. Whenever you claim for car theft or some other reason, your insurance premiums increase in this case. Your location, make and model of car, previous claims, and insurance policies have a greater impact on insurance premiums. Car theft is indeed a great loss to your economic conditions, So, it is more feasible that you should take protective measures so that you can minimize the chances of car theft in the first place.

FAQs:

Does car insurance cover if only car items are stolen and not the car?

This mainly depends on the fact that what type of coverage has been bought by you. Comprehensive coverage is the insurance type that can pay you even when some parts of your car get stolen. These parts can include radio sets, seats, batteries, etc. But you should remember that it only pays compensation for the parts that are installed in the car and a part of the car. If some other material gets stolen in the car but it is authentically not part of the car then comprehensive coverage is not responsible for covering its loss such as wallets or phones etc.

What to do if your car gets stolen?

If your car gets stolen you should immediately call the police. Give all the details about your car and the place where it was packed and let the police do their activity. It can increase the possibility of recovery of your car. The next thing to do is to contact your car insurance and find out the coverage that can cover car theft. Then claim your car insurance and get the compensation.

How much time is taken for the progress of stolen car insurance?

Time for claiming the insurance of the stolen car can usually take a few weeks to a month. The time to get the payment after claiming is mostly 30-40 days but this process can be prolonged due to some complications. These conditions can be that if the police activity has not been completed and the theft has not been proven. Sometimes the car can be recovered in the meanwhile so insurance only cover damages.