Rising car prices nationwide have unfortunately caused higher auto crime rates, so it’s now more important than ever to have protection if your car ends up missing. Here is a short list of some of the most important things regarding theft you’ll want to consider when you purchase auto insurance.
How Do I Know If My Purchased Policy Covers Me Against Theft?
If you have comprehensive coverage, you are covered against theft and various other scenarios. If the authorities are not able to recover your vehicle, comprehensive coverage pays to replace it, up to the full cost of the vehicle’s cash value. If your vehicle is stolen then recovered, your insurer will pay for any necessary repair costs.
Many times, thieves are most interested in your car’s parts, and the catalytic converter has risen to the top of the stolen parts list. Comprehensive coverage pays for parts replacement as well as the damage your car suffers during the break-in. If the windows are smashed or someone wrecks your car after stealing it, this type of policy will cover you.
Are There Items That Comprehensive Will Not Completely Cover?
If your car is stolen and there is extensive damage, comprehensive coverage will pay for repair or replacement. However, If you had valuable personal property in the car during the time of theft, auto insurance will not cover these items. Textbooks, fishing equipment, your work laptop, and other such items will not be covered. This is important to know, as these alluring items can be the reason that a thief has interest in the vehicle.
The Fine Points of How Comprehensive Coverage Works:
Once you have begun a comprehensive coverage policy, it pays up to the vehicle’s actual cash value at the time a covered incident takes place. Before the coverage kicks in, you have to pay your deductible. After the deductible is met, your insurance company will pay for remaining expenses up to the current market value of the vehicle. Keep in mind that you may not receive a check outright for the total value you paid for the car, and the actual cash value means how much it is worth by CURRENT appraisal/blue book status.
Cars depreciate rapidly, and the reimbursement you get from a comprehensive policy will not buy a brand-new model of your car, unless you have made the choice to have new vehicle replacement coverage. If you opt for new vehicle replacement coverage, you see reimbursement for the cost of a brand-new vehicle instead of the now-depreciated value of a similar model. Gap insurance is also a huge help, as it can cover what you still owe on the lease, as well as what was paid for the now-depreciated value of the totaled car.
Taking Action if you Become a Victim:
If you file a police report within 24 hours and provide the authorities with as much information as possible, your chances of recovering your vehicle increase dramatically. Helpful information here is your driver’s license number, the car’s VIN, and license plate number. Be prepared to clearly state where the car was last seen or driven, along with the time it was deemed missing. A comprehensive list of everything that was in the car just before it disappeared will be a great help to the authorities as well along with any GPS data that assists with quick recovery.