Know About Stolen Car Insurance Claim Process

By Atul Yadav
  | Published: 22 November 2021

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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.  

Car Insurance for Stolen Cars

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. 

What Insurance Covers Theft from Car?

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. 

How to Claim Car Insurance for Stolen Cars?

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:

  • Contact the police and report your stolen car as soon as you are aware of the incident. If your car was parked in a paid parking, talk to the concerned security in charge to get some idea about the situation. If there is an anti-theft device with a tracker installed in the car, begin tracking the car. 
  • Contact the insurance company and inform them about the car theft incident immediately. You do not have to submit a claim right away though. 
  • Begin with the claim process soon after filing a police report so that you do not miss the deadline window. Obtain the claim form and fill out all the required details.
  • Attach all the required documents with the claim form and submit them using online or offline means. 
  • The claim will get processed when the car is categorised as unrecoverable or untraceable by the police. It may take the insurance company a little while to calculate the payable amount. 

Documents Required for Stolen Car Insurance Claims

  • A copy of your driving license or permit
  • A copy of the registration card of the car and related documents 
  • A copy of insurance documents 
  • The original police report of the theft
  • Ideally filled car theft claim form 
  • A record of the location of all existing keys of the car at the time of the theft 
  • Details of all the people who have access to the car
  • List of things stolen from the car (if applicable) 

What Will the Pay Out Be Like?

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. 

When Can Your Stolen Car Insurance Claim Get Denied?

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:

  • Delay in Initial Action: You are supposed to contact the police and submit an official report as soon as you find out about the stolen car. The same goes when contacting and informing the insurance company is concerned. If there is a delay or gap here, the claim will get denied. So make sure that you call the police right away after finding out about the stolen car. 
  • Incomplete Paperwork: If you are unable to produce the required documents at the time of claim submission, the insurance company can reject or deny the claim. The claim will be filed as ‘rejected’ initially. Rejected claims can be resubmitted after rectifying the error or adding the missing documents. If you are unable to do so, the claim will get denied. 
  • Missed Claim Deadline: Whether it is about damage repair claims or theft claims, deadlines are always going to be there. Make sure that you submit the claim within the stipulated deadline as mentioned by the insurance company. 
  • Stolen Due to Owner’s Fault: Cars that are stolen due to the owner’s fault are not reimbursed by the insurance company. If the insurance company finds that your car was stolen due to negligence, your claim will get denied. This can include any small or big thing such as leaving the windows open, not locking the car, etc. 

What If Your Car Is Found After Claim Settlement?

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. 

What If the Damage Car is Found Before Claim Settlement but After Claim Submission?

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. 

Some Things to Keep in Mind

  • You may need a no-trace report from the police to have car insurance for stolen cars claim approved. Talk to the insurance company and find out if they need this document. 
  • Since you are required to keep your registration card and other related documents handy in the car, make sure that you keep a copy as well. Your original documents will most probably be stolen with the car, so it is best to keep a copy to make sure that the claim does not get denied. 
  • Deadlines to submit claims can differ for each provider. Make sure you check out the specific norms set by your insurance company in this regard. 
  • Major car insurance claims are settled via the direct claim procedure. But the process to submit car insurance for stolen cars claim is going to be different. Keep an eye out for that and make sure that you follow the correct steps. 

In a Nutshell 

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. 

Atul Yadav
Atul Yadav

Atul has had a flair for writing ever since he started writing essays in school, which inspired him to subsequently opt for a career in writing. He loves to write about places he's been to (the list is endless) and financial products that can help people make a real change in planning their finances better.