When it comes to vehicle thefts, there is good news and bad news. The good news is that according to the Insurance Information Institute, vehicle thefts in the United States are trending downward over the past 25 years since a peak of 1.6 million in 1991.

The bad news is there has been an increase in vehicle thefts since 2017 as thieves develop new ways to circumvent anti-theft technology.

So, don’t let the good news fool you, having your car stolen can happen to anyone. If you are among one of the many victims of car theft in the United States, you need to know how to file an insurance claim for theft.

Here are some guidelines on how to file a claim for your stolen vehicle.

 

First Things First: Contact the Police Department

 

Before you do anything else, contact law enforcement. Stay at the scene of the theft and wait for them to arrive. They will write a police report and begin making attempts to recover your vehicle. You will need a police report for your insurance company. You will also want to notify the officer if your car is equipped with a vehicle location device such as LoJack or SkyLink.

 

Contact Your Insurance Company

 

Most insurance companies have a dedicated claims phone number. It should be printed on the back of your insurance card. Some companies also allow policyholders to file claims online or through an app. Either way, contact your insurance company immediately to get your claim started.

 

Completing the First Notice of Loss

 

The First Notice of Loss (FNOL) is insurance claim lingo for when you put your insurance company on notice that something has happened to the vehicle. It is a question and answer session between you and your insurance company. It gets the claim started. You will need to answer some questions such as:

• Identify the year, make, and model of your car
• When you last saw your vehicle
• How you noticed it was missing
• If you have all the keys in your possession
• If the vehicle was locked
• If you filed a police report
• If there is an alarm on the vehicle

Gather Your Documents and Other Information

 

There are some things your insurance company needs to help with your auto theft claim. After you have made a police report and filed your FNOL, start gathering your paperwork and other information. Some things you may need include:

• Title and registration
• Lienholder contact information and account or loan number
• Names and phone numbers of anyone that had access to your vehicle. This could include family members and roommates
• List of personal property that was in the vehicle

 

What Your Insurance Company Does Next

 

After you file the FNOL, the insurance company will assign a special theft adjuster. A theft adjuster is experienced in vehicle theft claims and is going to help resolve your claim. You can expect to have several phone conversations and email exchanges with your theft adjuster. They have two primary responsibilities:

• Determine that the vehicle is covered under the policy
• Determine there is coverage for theft on the policy

This is also an excellent time to ask your adjuster about replacement transportation – rental car coverage. Your adjuster can tell you how it works and if you have it on your policy. Before you jump into a rental though, brush up on how rental car insurance works.

 

Finally, the Settlement

 

The last part of the claims process is the settlement. The settlement is where the insurance company issues payment for your stolen vehicle and the claim is closed.

The theft adjuster will complete the valuation of your vehicle and issue payment based on your vehicle’s actual cash value at the time of the theft. Remember that most auto insurance policies are based on actual cash value – not replacement cost.

An actual cash value settlement is calculated by starting with the replacement cost of your vehicle and then subtracting the depreciation (for age and wear and tear of the vehicle).

So, for example, if your 2015 Honda Accord is stolen, your settlement will be based on the cost to replace your vehicle minus three years of depreciation.

 

Final Thoughts

 

No one likes to pay for insurance, but everyone is glad they have it when they need it. Protecting your property with adequate insurance ensures that you can recover financially if you are the victim of vehicle theft.

To learn more about covering your vehicles for theft, contact our team at www.protectiveagency.com or call us at (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.