Car theft is an unfortunate reality, and recent years have seen a concerning increase in these incidents. Data from the National Insurance Crime Bureau (NICB) indicates that auto thefts have surged to levels not witnessed in over a decade. If you find yourself in the distressing situation of having your car stolen, knowing the immediate steps to take is crucial. This guide provides a comprehensive breakdown of what to do when you discover your vehicle is missing.
Why Immediately Report Your Stolen Car to Law Enforcement?
Promptly reporting your car as stolen to the police significantly increases the chances of its recovery. NICB statistics reveal that a substantial percentage of stolen vehicles are recovered quickly: 35% are found on the same day of the theft, and 45% within just two days. A police report is not only vital for recovery efforts but also serves as essential documentation for your insurance claim. When you report to law enforcement, you establish an official record detailing the vehicle’s last known location, any evidence at the scene (like broken glass), and the estimated time of theft. Insurance companies often require this police report to process your claim. They may also inquire about access to your car keys, such as if they were recently with a repair shop.
What Information Will You Need to Report a Stolen Car?
When reporting your car stolen, whether to the police or your insurer, be prepared to provide specific details to aid in identification and the reporting process. This information typically includes:
- Vehicle Make and Model: Specify the manufacturer (e.g., Honda, Ford) and the model (e.g., Civic, F-150).
- Vehicle Color: Note the exact color of your car.
- License Plate Number: Provide the license plate number and the issuing state.
- Vehicle Identification Number (VIN): The VIN is a unique 17-character code for your car. You can find it on your insurance documents, such as your policy or insurance card (physical or digital).
- Details of any GPS System: Inform authorities if your car is equipped with a GPS tracking system, which can significantly assist in its recovery.
The process for filing a stolen vehicle report with your insurance company can vary. It may involve a phone call, online submission, or direct contact with your insurance agent, depending on the company’s procedures.
Step-by-Step Process of Reporting a Stolen Car to Your Insurance Company
As mentioned, initiating a police report is usually the first step before filing an insurance claim. Once you have reported the theft to law enforcement, you can proceed with your insurance claim. Here’s a step-by-step guide:
- Contact Local Law Enforcement First: Begin by reporting the theft to your local police department and obtain a police report. You will need the police report number for your insurance claim.
- Notify Your Insurance Company Immediately: Contact your insurance provider as soon as possible to report the theft. You can typically do this online, via phone, or through your insurance agent.
- Provide the Police Report and Vehicle Information: Submit the police report number and all the necessary details about your vehicle (make, model, VIN, etc.) to your insurer.
- Understand the Claim Process: Your insurer will acknowledge your claim and begin the process. Initially, they will likely mark the vehicle as stolen but may delay finalizing the claim, as there’s a possibility the car might be recovered.
- Cooperate with the Insurer’s Investigation: Be prepared to answer questions from your insurance adjuster and provide any requested documentation.
- Wait for the Outcome: Insurance companies typically wait a certain period before declaring a vehicle as a total loss due to theft. This waiting period allows time for potential vehicle recovery.
Does Auto Insurance Cover Car Theft?
Understanding your auto insurance coverage is essential. Most standard auto insurance policies include three primary types of coverage: liability, collision, and comprehensive.
- Liability Coverage: This is mandatory in most states and covers damages you cause to others in an accident.
- Collision Coverage: This covers damage to your vehicle resulting from a collision with another vehicle or object.
- Comprehensive Coverage: This is the coverage that protects you from theft and damages not caused by traffic accidents, such as vandalism, natural disasters, or theft.
While liability insurance is required, collision and comprehensive coverages are usually optional. If you own an older car, you might choose to forgo comprehensive coverage to save on premiums. However, without comprehensive coverage, you would be “self-insuring” against theft, meaning you would bear the full financial loss if your car is stolen and not recovered.
Will Reporting a Stolen Car Increase Your Insurance Rates?
Filing a comprehensive claim for car theft can potentially impact your insurance rates. However, it’s important to understand that insurance rates are calculated based on numerous factors, and theft is just one of them. Other factors include your driving history, years of driving experience, annual mileage, location where your car is primarily parked, the type and age of your vehicle, and more. Each insurance company weighs these factors differently. While a theft claim might contribute to a rate increase, it’s often less impactful than factors like multiple at-fault accidents.
What If Your Stolen Car Is Recovered?
The process after your stolen car is recovered depends on its condition.
- Assess the Damage: First, carefully inspect your vehicle for any damage. Is it minor, like a broken window, or more significant, such as collision damage?
- Minor Damage: For minor damages, you might choose to pay for the repairs out-of-pocket, especially if the cost is less than your comprehensive deductible.
- Significant Damage: If the damage is extensive (e.g., accident damage, vandalism), you should file a claim with your insurer under your comprehensive coverage. Remember that comprehensive coverage usually involves a deductible, which is the amount you pay out-of-pocket before your insurance covers the rest. Given the costs of auto repairs, even seemingly minor accident damage can easily exceed a typical deductible (e.g., $500 or $1000). You will need to get an estimate for the repairs to decide if filing a claim is beneficial after considering your deductible.
What if You Have a Loan on the Stolen Vehicle?
If you are still paying off a car loan, the lender (lienholder) is considered the legal owner until the loan is fully repaid. Lenders typically require borrowers to maintain comprehensive and collision insurance to protect their investment in the vehicle. In the event of theft, the insurance payout would first go to the lienholder to cover the outstanding loan balance. It is crucial to inform your lienholder about the theft and keep them updated on the insurance claim process.
What if a Teenager’s Car (Under Parents’ Name) Is Stolen?
The reporting process remains the same even if a teenager is driving a car registered under their parents’ name. The first step is to confirm with parents whether they have used or moved the car to avoid a false alarm. Once confirmed as stolen, report it to the police immediately. The insurance claim process will then be handled by the policyholder (likely the parent), but the steps for reporting to both police and insurance remain consistent.
How to Prevent Car Theft in the Future
Prevention is always better than dealing with the aftermath of car theft. Here are some effective measures to minimize your risk:
- Remove Valuables: Never leave valuable items visible in your car. Hide them out of sight or, ideally, take them with you.
- Lock Your Doors and Close Windows: Always ensure your car doors are locked and all windows are fully closed, even if you are only leaving your car for a short time.
- Never Leave Keys in the Car: Data indicates a rise in thefts where keys are left inside vehicles. NICB data shows a significant increase in such thefts: 78,345 in 2017, rising to 97,769 by 2020. Always take your keys with you.
- Use Anti-Theft Devices: Consider aftermarket anti-theft devices such as fuel or ignition cut-off systems. Visible deterrents like steering wheel locks or brake pedal locks can also discourage thieves by adding an extra layer of security and making your car a less appealing target.
By taking these precautions and knowing what to do if the unthinkable happens, you can better protect yourself and your vehicle from theft.
