David Walker
One of my friends recently had his car stolen. It was a brand new car which he bought late last year. He left it in a parking lot to attend a house party, and when he got out after a few hours, it was gone! It was unfortunate that he did not have a car alarm. Surprisingly, the car thieves may have known about this, which made the theft so easy.
Good thing there was a security camera in the parking lot. So he filed a police report, submitted it to insurance and got his claims. A few months after, the culprit was caught, and his car was recovered.
Which brings us to the question – what happens if stolen car is recovered after insurance company pays claim? What are the next steps?
What To Do When Your Car Gets Stolen
The first thing that you need to do is call a police officer to the site where the car was stolen. Police officers will then conduct an investigation and check the surroundings. They may also radio nearby police officers and have your vehicle alerted by providing the license plate number. It is best to have all the details ready such as the make and model of your car and the license plate number. If your car has a tracking device, then it will be easier to find your vehicle, so make sure to let the police officers know.
Based on my friend’s experience, the police went through a thorough sweep of the parking lot, and that was how they discovered the security camera.
Contacting the police right away is crucial. The thief or thieves may still be in the area and may harm you. Also, there may be some evidence on the site that only experts can uncover.
Another reason why it is necessary to contact the cops is so that further theft can be prevented and the culprits will be caught.
After obtaining the police report, immediately inform your insurance company so you can file your claims. Take note that your insurance company will still conduct their own investigation, so you won’t get the claims right away. If your car is mortgaged, continue paying for it, so you don’t get penalties.
What You Need to Know About Insurance Coverage
Keep in mind that not all insurance policies cover stolen cars, so it’s best to review your policy coverage and see if it is. If you have a comprehensive insurance policy, then your vehicle is indeed covered should it get stolen. However, read the fine print or consult with your insurance company and ask them what happens should you be able to recover the stolen vehicle. Here is a helpful article on what you need to know about insurance policies and coverage.
If you have comprehensive insurance coverage, you will be paid the current value of your car or have your car replaced. Keep in mind that the amount you will get is not equal to the value of what you paid for. The amount is determined by the current value of your vehicle, and vehicles depreciate by 20% as soon as you bring it out of the dealership.
When you need to file an insurance claim, make sure that you have all supporting documents and solid evidence. Some insurance companies are wary about approving claims for stolen vehicles. They look at your background and check if you have financial problems. If you do, they think that you fraudulently reported the car as stolen so you can get money.
What To Do When You Recover Your Car
When you are lucky enough to recover your vehicle, as was the case of my friend, either you end up with two cars or extra money. The first step is for you to contact your insurance company and let them know. Failure to do so can implicate you in fraud. Fraud simply means you deceived your insurance company for financial gain.
Now, what happened was that my friend ended up with two cars since his stolen vehicle was recovered. He spoke with his insurance company, and they agreed that he would return the new one because it is technically owned by the insurance company.
If he were given money to compensate for the loss, his option would be to return the money that was given to him. It would be wrong for you to keep the money or the car when you have lost nothing. Plus, your insurance premium has increased because you filed the claim.
There are rare instances that recovered vehicles are already damaged. This occurs when the stolen car was used as a getaway vehicle for other criminal activities, or it was involved in an accident. If this is the case, communicate with your insurance company on your course of action.
Conclusion
What are your thoughts on the above article? Do you have a similar experience to share with us? Well, hopefully, you don’t have to experience the above; nobody wants to have their vehicle or any property stolen. Moving forward, it is also best that you invest in a car alarm to prevent car theft.
Should you have further questions, suggestions, or feedback don’t hesitate to let us know. Please feel free to share this article with your friends as well.
