How Does Car Insurance Work When Your Car is Stolen?

You don’t want your car stolen, do you? Of course not! That’s why it’s super important to know what to do to try and stop that from happening. It’s also important to have car insurance that will provide financial cover if your car is ever stolen. Discover more as Dialdirect discusses car insurance theft and what to do if your vehicle is stolen. 

What to do if your car is stolen?

Many people become panicked and flustered when their car is stolen. Take a deep breath and follow these recommendations:

1. Contact your vehicle tracking company. If your car has been financed, many vehicles must have an anti-theft vehicle tracking device to qualify for car insurance. 

2. File a police report. Remember that you must provide certain information like: your driver’s license, vehicle registration details, the make, model and colour of the car, and the vehicle identification number (VIN). Dialdirect advises that you keep all this information in a safe place so you can retrieve it in case of an emergency, like a car accident or vehicle theft. 

3. Notify your insurers. Once you’ve filed the police report, you must contact your car insurance company. The consultant will also require details from you, including the police report. They may also ask for details like: where the car was parked and when it was stolen. 

4. Investigation. Once all the reports have been processed, the police and insurance company will investigate. 

5. File a car insurance claim. You can file a car insurance theft claim if your vehicle is not recovered within the allocated time. Depending on your policy, your insurer will cover the value of your stolen vehicle or offer you a settlement based on the value of your car. 

6. Excess and cover limits. Please note that you may be responsible for paying an excess before your insurer will pay out your claim. 

Many car insurance policies, like Comprehensive Car Insurance and Third-Party Fire and Theft insurance, cover theft. Discover more about How to insure a car. 

What is the stolen car insurance payout?

Your car insurance company provides a car insurance payout for a stolen car, the actual figure will depend on the cash value of your vehicle and your excess. So, read your car insurance policy thoroughly and speak to your consultant, if necessary, to understand your coverage and any potential payouts in the event of a theft. The likely insurance payout for a stolen car will also depend on the type of car insurance policy you have. Comprehensive Car Insurance and Third-Party, Fire and Theft insurance do cover theft, but Third-Party only does not. 

If your car is not recovered, your insurer will pay you out the cash value of your car minus the excess. The actual cash value is the market value of your vehicle when it was stolen. This value is based on factors like: 

• The car’s age

• General condition

• Mileage

A new car will, for instance, receive a much higher payout than an older car. The excess refers to the amount you must pay out-of-pocket before your car insurance cover kicks in. 

Tips to avoid your car being stolen  

Car theft still remains a major worry for South Africans and the short-term insurance industry. Tracker has reported that R8.5 billion worth of vehicles are stolen or carjacked annually in South Africa[1]. There isn’t a quick fix for this problem,  but better security is probably the best way to keep those thieves away, and the more deterrent you have, the better.

Following some of these safety tips and precautions can help deter car thieves:

• Be aware of your surroundings. If you notice any suspicious activity or behaviour, we suggest you leave the area immediately

• Park in safe, well-lit areas that preferably have on-site security. Avoid parking in secluded areas, even if you are in a bit of a rush

• Don’t leave valuables in your vehicle. Laptops, phones or bags left in plain sight could be a target for thieves who make break your window to get in. If you must leave valuables in your vehicle, ensure they are stowed away from sight or locked in the boot

• Invest in anti-theft devices, like an alarm system, gear lock or immobiliser

• Install a vehicle tracking system

• Keep your keys secure. Don’t leave your keys in an easily accessible location 

• Repair broken windows or locks as soon as possible

• Check that your car is locked. Be mindful of remote jamming, especially at busy malls and shopping centres

• Make sure your vehicle is locked when driving

Get a quote on car insurance for theft with Dialdirect 

Trust Dialdirect with your car insurance cover. Protect your investment by ensuring you’re covered for car theft or carjacking. Apply for a car insurance quote online with Dialdirect today. 

Sources:

[1] Tracker: Vehicle crime in South Africa 

Disclaimer: The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.