Car theft might sound like a rare occurrence. But in Canada, a vehicle is stolen every six minutes, on average. However, with auto insurance, you can protect yourself from potential risks of car theft.
But how does car insurance cover theft? Will you get any compensation in case your car gets stolen? Does a general insurance policy cover theft protection? And what are the procedures you should follow to claim insurance in case of theft and vandalism?
There are so many questions that engulf your mind about car insurance with theft coverage.
This article will answer the commonly asked question, “does car insurance cover theft in Canada?”.
To compare insurance companies and quotes, visit the Surex website at your earliest convenience.
Does insurance cover car theft in Canada?
General car insurance is not enough for theft protection. You need to opt for comprehensive coverage for protection against theft and vandalism.
With comprehensive auto insurance policies, you can enjoy significant coverage in case of complete theft, damage during theft or break-in attempt.
When you file a claim, you will either be paid the repair cost for the actual cash value of your car (ACV in case of complete loss), minus your predetermined deductible.
Once you are sure your car has been stolen, file a police complaint immediately and contact your insurance agent/broker to file a claim. The sooner you start the complaint filing process, the greater the chances of recovering your lost car.
What are the alternatives to comprehensive insurance?
Here are some alternatives to comprehensive coverage:
- Specified Perils: in some cases, comprehensive insurance can be expensive. You can add theft protection to your existing insurance policy by selecting specified peril coverage.
- Gap Insurance: Gap coverage can be beneficial in case of a total loss, such as a stolen car or complete damage after recovery. Gap insurance gives you financial support by calculating the differences between the actual worth of your vehicle and how much you owe on your loan.
- New car replacement coverage: Gives coverage to entirely replace a new car in case of theft within the first few years of purchase.
What does car insurance cover for theft in Canada?
Components covered under theft protection in a comprehensive insurance policy include:
- Damage resulting from an attempted or successful break-in
- Complete theft of the vehicle
- Damage caused by vandalism
- The vehicle crashed while stolen
- Stolen or damaged keys and fob
- Any damaged or stolen parts such as in-built stereo set, tires, battery, etc.
Items not covered under the comprehensive policy include:
- Personal belongings
- Any tech that was purchased separately
Insurance coverage will pay for:
- Replacing the stolen vehicle.
- Repairing or replacing components that are stolen or damaged.
- Repair damages to your entire automobile caused by theft or a break-in attempt.
What are the steps you need to follow after your vehicle is stolen?
Here are three fundamental steps that you need to follow if your vehicle is stolen:
Be completely sure that your vehicle has been stolen
While your first instinct will be to inform the police immediately, pause for a few moments and consider if it was actually stolen. Was it towed for illegal parking? Did any one of your family members take it for an emergency purpose?
Inform the police and file the complaint
Once you are absolutely sure that your car has been stolen, immediately inform the police to begin the investigation process. You will need to share information about your vehicle’s brand, model, year of manufacture, license plate details, VIN and information on surrounding events. Don’t forget to mention technology integrated within a car that can help the police to find or locate your vehicle.
Get in touch with your insurance agency
A police complaint report is necessary for filing an Insurance claim. Therefore call your insurance after you have filed a report. Share as much information as possible, including the personal items you had left in your car. Although comprehensive car insurance will not cover your personal belongings, home insurance might.
What is the time frame associated with stolen vehicle insurance claims?
In Canada, it usually takes 11 days to recover a stolen vehicle. 30% of recovered automobiles come back with significant damages.
Usually, most companies have a predefined minimum waiting period of 30 days before closing the claim. This window is generally kept to see if the stolen vehicle can be recovered. It is recommended that you discuss the claim window with the insurance broker before purchasing the policy.
What happens when your vehicle gets recovered?
- Once your vehicle is recovered, your comprehensive insurance coverage will cover any necessary repairs and replacements, minus the deductible.
- If the repair costs are significantly higher than the value of your car, it is considered a total loss. If your insurance agency determines that the car isn’t worth saving, you will receive the actual cash value after deducting the predefined deductible amount.
- If your stolen vehicle is recovered after receiving the insurance amount, your insurance agency will likely take the vehicle ownership. However, if you haven’t already purchased a replacement vehicle, you might need to return the claim amount. This varies from case-to-case basis. Discuss these scenarios with your insurance provider while purchasing the comprehensive coverage policy.
Frequently asked questions
Am I eligible for filing a claim if the ignition was on?
Yes. Comprehensive policies extend coverage if your car is stolen with the ignition turned or with keys left inside your car. You will also get coverage in case you forgot to lock your car.
Does auto theft insurance cover my personal belongings?
No, auto theft insurance doesn’t cover your personal belongings, including your phone, laptop, wallet, car seats, additional tech, etc.
However, your home insurance might cover your personal belongings. You might need to pay a separate deductible amount while filing for this claim.
Does car insurance cover theft in Canada? — Conclusion
Getting a car stolen is an extremely unfortunate circumstance. However, comprehensive insurance coverage can reduce your financial ordeal. Connect with an insurance agent today to purchase theft protection insurance.