Auto insurance can cover different types of risk and they can be your savior in case of an accident. A lot of people have a question if their auto insurance covers for theft of the vehicle. The answer to this question is not as simple as it sounds. Here is the answer to this most frequently asked question.
Types of Insurance
There are different types of insurance available in the market and what is covered and what is not covered depends on the type of insurance you have. To begin with, the types of insurance available in the market are Third Party Insurance and Comprehensive Insurance.
Third-Party Insurance comes at a lower premium whereas, the premium for the comprehensive Insurance is generally higher when compared to the Third Party Insurance.
There is only one insurance among these two which covers for the Vehicle Theft. Let us now check out the answer to this question.
Which Auto Insurance Covers Theft?
Well, Third Party Insurance doesn’t cover theft whereas Comprehensive Insurance covers for vehicle theft. So, if you live in an area where car thefts are not very rare then you must opt for a Comprehensive Insurance. This will save you in case of a theft as you can claim for the amount and you will receive the money as per the present valuation of the vehicle.
It is always better to have a comprehensive insurance as there are many other things which are covered under the comprehensive plan. Do you know what other things are covered under Comprehensive Insurance plan?
What Else is covered in Comprehensive Insurance Plan?
Apart from theft, the comprehensive insurance plan also covers damage to the vehicle because of sabotage, natural calamities, and even fire. These are the added coverage of the comprehensive insurance policies and hence you must always prefer comprehensive insurance plan instead of the regular third-party insurance plan.
What do I do in case of Theft of my Car?
In case of this unfortunate event, you will only be protected if you have a comprehensive plan. This will help you in getting a financial reimbursement if the car has been stolen. There are certain steps that need to be followed in case of a car theft. These steps need to be followed diligently so that you claim doesn’t get rejected.
To get the insurance claim, you first need to file an FIR at the nearest police station. Once you have filled an FIR, you need to call the customer service for the insurance provider and let them know about the vehicle theft. They will provide you with a claim form.
Fill in the claim form and attach all the documents that you have. The important documents include the Registration certificate of the vehicle, copy of FIR and policy documents. Once the documents are submitted and once the police submit a non-traceable report, the insurance firm will release the funds to compensate for the loss.
Comprehensive Auto Insurance covers for vehicle theft and hence you must always stick to the comprehensive policy.