How to Collect Car Insurance After Your Car is Stolen

If you have ever come back to an empty parking spot where your car used to be, then you know that pit-in-your-stomach feeling when you find out that you vehicle has been stolen. After calling the police, your next step is to file a stolen car insurance claim. This can be a stressful process, but here’s some car theft insurance claims advice to help you through it.

Filing a Stolen Car Insurance Claim

Filing a stolen car insurance claim has been simplified by most insurance carriers because companies allow you to contact them 24/7 by a toll free number. After taking a stolen car insurance claim over the phone, the insurance adjuster will begin the stolen car investigation process by asking some of the following questions:

• Where did you park the car last?
• Did you file a police report? – Note that a police report is REQUIRED in a stolen car insurance claim
• They will verify they year make and model
• You may get asked if there are any security devices on the car just as Lo-Jack or other locating devices.

Most carriers have a waiting period (anywhere from 7 days to 2 weeks) to see if the car will be recovered. If it is not recovered, then you will be paid the actual cash value of your stolen car under the comprehensive coverage of your insurance policy after the stolen car investigation process is complete.

Getting the Best Stolen Car Insurance Payout

Your insurance policy should define Actual Cash Value (ACV) and explain how the company calculates your car’s ACV during the stolen car insurance claim process. Most polices state that the ACV of any vehicle is the market values minus depreciation, and if you are unfamiliar with that calculation than ask the adjuster to walk you through it. You need do some of your own research to double check the insurance company’s ACV calculation! The best way to to check your stolen car’s cash value is to consult many of the online sites such as Kelley Blue Book or Edmunds for pricing to make sure you’re getting the best insurance payout for a stolen car. Always use the most reputable resource in order to get the most accurate value.

Stolen car insurance claims adjusters will always start at the low end of their range, so don’t take the first offer without making sure you are getting full value! Slowly negotiate down from your offer to come to an agreement. Once you have accepted a stolen insurance claim settlement you will be asked to sign ownership of the car over to the insurance company. After you accept an offer, you cannot demand more money, so make sure your settlement is fair!

What to Do if You’re Unhappy With the Stolen Car Insurance Claim Offer

If you are dissatisfied with the offer to settle your stolen car insurance claim, it is your right to dispute it. You can try to get a higher stolen car insurance payout. Prepare yourself for a dispute by gathering detailed evidence – like the blue book value, information from independent appraisers or other details – to back up your valuation or your estimate. It is possible that the insurance adjuster may have missed several features of your vehicle thus explaining the lower offer. Make sure that adjuster has not made an error on the model of your stolen car (say an “EX vs. “LS”) which can also account for a lower offer. Point out any great perks of your perks of vehicle such as low mileage or an excellent condition, which will increase the valuation.

Stolen Car Claims and Bad Faith

All insurance companies will do their due diligence with a stolen car insurance claim investigation. This can include:

• Pulling credit reports to look for any signs of financial trouble and any evidence that you may have committed fraud,
• Looking at your current employment status
• Talking to friends, family or roommates that may know something about the theft to corroborate (or disprove) your story,
• Speaking with witnesses to determine the last time the car was seen,
• Reviewing every statement you make to the police to make sure you are saying the same thing to them.

Sometimes the insurance company’s stolen car insurance claim investigation can go too far, and make a leap in judgment that results in an unfairly denied claim. For example, insurance companies may deny a stolen car claim after drawing the conclusion that a person who recently lost their job and is one month behind on their car payment could have had something to do with its disappearance. Such a leap to judgment and to a denial could be deemed an act of bad faith on the part of the insurance company.

An insurance company must review a stolen car insurance claim fairly and in good faith, and if they are denying the claim unreasonably then you may be able to file a bad faith lawsuit. If you feel like your claim has been wrongfully denied, reach out to a bad faith insurance attorney for assistance. Before contacting an attorney however, pull together everything you will need to help them:

• A copy of your insurance policy
• Copy of the denial letter
• Any and all correspondence on the claim-emails, letters, transcribed recorded statements, etc.

If you believe your insurance company is low balling you with its actual cash valuation of your vehicle or if you feel you have a bad faith denial, it is always in your best interests to review your claim with an insurance lawyer who can deal with the insurance company.

Case Studies: Navigating Stolen Car Insurance Claims

Case Study 1: John’s Stolen Car Insurance Claim

John experienced the unfortunate event of having his car stolen from a parking spot. After contacting the police, he immediately filed a stolen car insurance claim with his insurance company.

During the investigation process, the insurance adjuster asked him detailed questions about the incident. Despite the waiting period to see if the car would be recovered, John’s vehicle remained missing. Eventually, he received a payout from his insurance company based on the actual cash value of his stolen car.

Case Study 2: Sarah’s Negotiation for a Fair Insurance Payout

When Sarah filed a stolen car insurance claim, she was dissatisfied with the initial offer made by the insurance company. She believed that the offer did not reflect the true value of her stolen car.

In order to dispute the offer and seek a higher payout, Sarah gathered evidence to support her valuation. She consulted reputable online sources like Kelley Blue Book and Edmunds to determine the accurate market value of her car. With this information, she negotiated with the insurance adjuster until they reached a fair settlement.

Case Study 3: Michael’s Bad Faith Stolen Car Insurance Claim

Michael found himself in a situation where his stolen car insurance claim was unreasonably denied by his insurance company. He suspected that they had acted in bad faith by making false assumptions and unfairly denying his claim. Michael decided to seek legal assistance and consulted a bad-faith insurance attorney.

Together, they reviewed his claim and gathered all necessary documentation to support his case. If the attorney finds evidence of bad faith on the part of the insurance company, Michael may have grounds to file a bad faith lawsuit.