Home > Help Centre > Blog Auto theft is one of the many threats to your vehicle. Making sure you are covered when you are considering insurance can help lower the risk and costs of a stolen car. The Ontario government has allocated $51 million for a three-year period to combat the rising rate of auto theft, which has spiked by 14% in the last year, as of May 2023. Stats show a car is stolen every 48 minutes in the province, which has to an increase in Ontario car insurance, due to surcharges. Even with the advancements in technology, such as the Tag tracking system, taking preventative measures to protect your automobile from theft can make a difference. With numbers rising around theft, what should a driver do to protect their vehicle? In this blog post, we'll delve into the importance of insuring your vehicle against theft and how it can save you from a world of trouble. If you have the right insurance in place, it will cover an automobile that has been involved in a theft. Protection against automobile theft is not included in a basic auto policy. However, with optional packages such as comprehensive insurance you will be covered if your vehicle is stolen. This type of endorsement can help :
You can add protection against auto theft by adding any of these additional modifications to your insurance :
If your vehicle is among the top most stolen vehicles, you may see a premium surcharge. Insurers are looking for avenues to help combat the rising costs of claims for high-risk vehicles. Some companies are offering incentives for installing anti-theft devices.
Once you are positive your vehicle has been stolen, contact the police immediately to file a police report and follow their instructions. Call your insurer to inform them about the situation. Contacting them also protects you if your automobile is used to cause harm or commit a crime.
Here are the three key steps to take if your vehicle has been stolen :
When you file a car insurance claim for a stolen vehicle, expect your insurer to open an investigation.
You will be expected to provide the following information :
On average, it takes 11 days for an automobile to be found and 30% of recovered vehicles come back with damages.
Most companies have a minimum waiting period before closing the claim. Typically it is 30 days. This happens to see if your vehicle can be recovered. Since companies are different in how they handle claims, ask them about the expected time frame.
If your automobile is stolen and not recovered, it will be considered a total loss. You will work with your insurer to agree on the market value or actual cash value (ACV). This is the amount you will be paid out. You will not be reimbursed for the vehicle's original value or the replacement cost.
Auto theft can affect how much you pay for insurance. It costs drivers, companies and the government millions of dollars annually. It is impacted by many factors such as :
Auto theft is preventable. In fact, nearly half of thefts are due to driver error – leaving the doors unlocked, keys in the ignition, etc. Follow these prevention tips to lower the chances of your automobile being involved with theft :
It is a common myth that companies will not cover you if the keys are left in the vehicle. This is not true. Whether you left your vehicle unlocked, have a spare key in your glove compartment, or even left the keys in the ignition, in most cases, your claim will be settled. It could be denied, however, if there is a history of auto theft.
No. Personal belongings such as your phone, GPS, car seats, wallet, and other items are not covered, but they may be entitled to reimbursement under contents insurance. You can also get coverage for personal belongings through home or tenant insurance. You may have to pay a second deductible if you file a claim for loss of personal belongings.
Until your car loan is paid in full, you are still obligated to make payments, even if it is not recovered. Your payout can be directly applied to help pay off your car loan. If there is still a balance owing after you’ve paid the claim amount to your finance company, you will be responsible for paying the difference out of your pocket, unless you have gap insurance.
If your vehicle is recovered, your insurer will cover any damages under your comprehensive add-on. You are responsible for paying the deductible.
Car theft is an unfortunate reality that no car owner can completely eliminate the risk of. Each year, automobile theft costs Canadians close to $1 billion, including $542 million for insurers to fix or replace stolen vehicles. Not sure if you have car theft on your policy or want to make sure you’re covered for additional risks such as catalytic converter theft? Don’t leave anything to chance - speak with our team today. How Does Insurance Work If Your Car Is Stolen?
Aug 2, 2023
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