ONE of the yearly struggles of being a car owner is choosing the right car insurance, and with an overwhelming number of policies, it’s not easy.
Even if you have chosen your policy, your car may not be insured against theft unless you have comprehensive coverage in your car insurance.
Car theft rates in the UK have fallen since 2002/03 when over 300,000 cars were reported stolen.
In 2013, car thefts hit their lowest point at around 70,000 thefts, but that number has been rising again in recent years.
Almost 90,000 cars were reported stolen in the UK last year.
According to a study by Consumer Intelligence, around one in three drivers expects their car insurance to pay out the purchase price for their car if it is stolen or scrapped.
But the misunderstanding can mean Brits are very unhappy once a claim is settled because some insurance policies don’t cover theft.
Be sure to check your own policy to understand exactly what you are insured for so you don’t waste money.
There are many policies to choose from and it’s all up to you the color of the car about your driving history can affect how much you pay.
Are stolen cars fully insured?
For the majority of motorists, insurance providers only pay the current market price of your car at the time of a theft or accident write-off, less any depreciation.
Even if your engine is brand new, it’s lost about 20 percent in value once you put it on the road.
Any gap between the amount you pay and the amount awarded by the insurer will be at your expense when it comes to buying a replacement – or just mean taking a few thousand pounds out of your pocket.
With such a significant write-off, you could lose an incredible amount in a write-off or theft.
On average, cars with 10,000 kilometers per year lose 60 percent of their value after three years, which makes the gap in purchase and market value enormous.
How can I avoid losing money if my car is stolen?
There is a policy add-on you can select to help prevent you from losing money if your engine is stolen.
Guaranteed Asset Protection (GAP) is one of the only ways to ensure your insurance coverage is likely to pay the full purchase price.
In most cases, GAP coverage will pay the full purchase price of your engine if it is written off or stolen, including the cost of any financing deals.
But despite the potential to save drivers thousands of pounds, figures show that just one in eight Britons chose not to buy their vehicle.
John Blevins, insurance pricing expert at Consumer Intelligence, said: “Suffering a theft or write-off is bad enough, but having to deal with financial worries about getting a replacement as a result adds to the pain at.
“GAP insurance can be very valuable and it’s a shame motorists are being put off buying it because they don’t trust dealers to get them a good deal.”
Collision Damage Waiver should pay off if your car is stolen, but check the details of your agreement before you pay.
Do I lose my no-claims bonus?
A no claims bonus (NCD) is a great way to reduce the cost of your car insurance.
Every year that you drive damage-free, the costs of your insurance for the following year are reduced.
Unfortunately, if your car is stolen and not returned by the police, your no-claims bonus will suffer.
Every time you are forced to make a claim with your insurer that results in a payout, your NCD is affected.
Many insurers will make you pay extra to protect your NCD, but if you’ve had a few years without a claim it could be worth it.
Does my insurance cover the rest of my financing?
According to Consumer Intelligence, nearly 80 percent of owners believe their insurance company will pay their outstanding loan if they bought their car on a finance basis.
But for most policyholders, ongoing financing deals aren’t included in the final payout.
However, if you have GAP insurance, your provider should cover the outstanding costs of your financing business.
As with all insurance claims, check with your insurer what they are willing to cover before committing to an agreement.
What are the chances that my car will be found again?
Around 917,000 cars were stolen between 2011 and 2021, but only 28% of stolen vehicles are returned to their owners.
Most of these are damaged and often unusable, so you may not be able to use your car even if you get it back.
The car that gets stolen the most is the Ford Fiesta, with 3,392 vehicles stolen in 2020 alone.
Other popular destinations include the Range Rover, the Volkswagen Golf and the Ford Focus.
As many as 101 John Deere vehicles were stolen in 2020, including tractors, lawn mowers and buggies.
Some police forces are more likely to find your car than others, with Merseyside Police recovering 75 per cent of their stolen vehicles.
But it’s bad news if you live in the West Midlands, as police have only recovered 12 per cent of reported stolen cars in the area.
https://www.thesun.ie/motors/3637935/insurance-payout-car-cost-stolen-no-claims-replacement/ Are stolen cars insured, won’t you lose claims and can you avoid losing money if your car is stolen?