Buy Car Insurance in 20 Seconds !
Even if car theft cases have reduced significantly in the UAE over the past few years, the problem still exists. Every now and then, some or other car owner ends up bearing the loss of having their car stolen. The worst part of car theft cases is that most end up being branded as unrecovered. This means that whether you are out shopping with your car parked in the open or at home relaxing, the danger of having your car stolen is always lingering around. Car insurance for stolen cars is designed specifically to tackle this very problem. However, simply buying the insurance plan is not the end of the deal. You must also know everything about claim submission and payout receipts to deal with car theft properly. So, let’s find out what car insurance for a stolen car is, how to submit the claim, what to do if the stolen car insurance claim is denied and some other useful things to remember.
As the name states, car insurance for stolen cars is a part of the basic car insurance benefits offered in a comprehensive car insurance plan. In a car theft cover, the insurance company agrees to reimburse you for the amount equal to the value of your car if it gets stolen and is beyond recovery. The amount payable is decided as per the insured declared value of the car, deductibles applicable and depreciation. The car insurance company calculates the current market price of the vehicle and then subtract deductibles payable on the policyholder’s part. The resulting amount is reimbursed as car insurance for the stolen cars claim amount. You can claim your stolen car insurance only after it has been declared unrecoverable by the authorities.
Theft of the car is not the only thing to be concerned about. It often happens that the car stays intact, but the valuables from inside the car get stolen. Unfortunately, unlike car theft, the theft of personal belongings and car accessories is not covered as a basic benefit of comprehensive car insurance plans. However, you can get an add-on cover for theft of personal belongings with your comprehensive car insurance plan. Since it is an add-on, you will have to pay an additional premium for it.
There is a list of simple steps that you can follow to successfully submit a stolen car insurance claim. Given below are the said steps:
As discussed before, the reimbursement amount for car insurance for stolen cars depends on the insured declared value of your car. Further factors that will influence it will be applicable depreciation and payable deductibles on your part. Ideally, the car insurance for stolen car claim payout will be equal to the market value of the car minus the deductible amount.
Having your stolen car insurance claim denied can be a nightmare after the horror of going through the event of theft itself. But remember, insurance companies do not deny stolen car insurance claims without any reason. There is always an apt reason for all denials and it is offered as an explanation to the policyholder as well. Below given are some of the top reasons for which your stolen car insurance claim can get denied:
Cars that are initially filed as untraceable are often found later. If your car was initially considered untraceable and unrecoverable but found later, the claim settlement of the theft can become a bit messy. One of the two things can be done here. You can return the claim amount to the insurance company and get your car back or the car becomes the property of the insurance company. This is generally decided on a case-by-case basis.
Another scenario is when you have already submitted the claim, but the police find your car before it gets settled. In this case, the insurance company will examine the car for damages and estimate the cost of repairs. If the repair cost comes out to be higher than the market value of the car, it will be categorised as totalled and reimbursement will be paid. If the repair costs are lesser than the market value of the car, the insurance company will pay for the repair expenses minus the deductible amount.
Car theft is indeed a drag for many reasons, and the claim process can be very long as well. Unlike damage repair expenses claims, car theft insurance claims may take weeks to get settled. The key is not to lose patience, have all the required documents ready and be prompt about initial actions related to submitting reports. Assure the safety of your car to avoid thefts and the long claim process that follows it. Keep the door locked, windows shut and park your car in safe, guarded parking spots only. Do not leave valuables in your car overnight or for a long time. Your safety lies in your own hand first and foremost.