Does your Car Insurance Policy Cover Theft?

The necessity of car insurance is, it provides financial protection if your car met with an accident or faced any unintentional damages. Out of many other damages to your car, car theft can be a stressful one. It can leave you worried and anxious. But having car insurance that covers theft can be a sigh of relief. There are many car insurance policies that cover car theft but it is important to check the terms and conditions of the policy. 

It is well-known that there are two types of car insurance - Comprehensive Insurance and Third-Party Insurance. 

Comprehensive Insurance - Car Insurance type that covers the damages caused to your vehicle. 

Third-party Insurance - Car Insurance type that covers the damages caused to another vehicle by your insured car. 

Working of Theft Coverage in Car Insurance

It is important to note that, Comprehensive car insurance covers car theft but third-party insurance doesn’t cover theft or stolen cases. When you have your car stolen and it is reported to the car insurance provider, the insurance company requires certain documents which will prove your claim. 

The coverage varies with each car insurance provider. Some providers provide a daily allowance to cover the daily commute expenses if you hire a car on a temporary basis while some offer the IDV (Insured Declared Value) as coverage. The Insured Declared Value is the value of your car at the time of insurance. The coverage provided can be less than the IDV as depreciation is considered. If you have “Zero Depreciation Cover”, then you’ll be able to get coverage for the insured value of the car. 

How to Claim Car Insurance for Theft?

The steps to be taken if your car is stolen is simple but very important. 

• Firstly, file a complaint at the nearby police station. The police will require some basic details like the car plate number, plate code, car make, model, and your driving licence & basic details. 
• The information needs to be passed to the RTA UAE as well so that the stolen vehicle cannot be re-registered 
• Then the insurance providers are informed without any delay. The insurance provider needs valid proof like FIR copy to support your claim
• The car insurance company investigates the claim request after getting a message from the police that the vehicle is not traceable then they proceed further to offer coverage as per the terms and conditions applicable to your policy. The coverage provided can be the full value of the car or the depreciated value. 
• If you are having a loan on the vehicle, then you need to inform the bank as well requesting them to provide a break on your car loan instalments. Once the insurance company reimburses the claim amount, you can clear your car loan. 

What is NOT covered in your Car Insurance Theft Claim?

Though comprehensive car insurance offers theft coverage without any add-on, there are certain factors that are not covered by car insurance. 

• Personal belongings in the car are NOT covered unless you are having an add-on “Personal Belongings Cover” which is meant to cover if there is any damage to the personal belongings in the vehicle like mobile phone, laptop, valuable metals, etc. or if any of the personal belongings are stolen from the vehicle. 
• If the vehicle is a rented one, then the car insurance coverage which is meant for your own vehicle is not accepted 
• If the personal belongings are left in the car overnight 
• If the car is damaged due to wear and tear or climatic conditions
• If the personal belongings are reported in the police report 
• If the car owner was reckless or intentional theft is planned 
• If the insurance company is informed late. The insurance company should be informed about the theft in less than 24 hours of the incident or else the claim will be rejected 
• If the documents provided fails to support the facts then the claim will be rejected