How Insurance Companies Handle Theft Claims

The first thing your auto insurance company will do isIf they do not find any information that exempts
review your policy to confirm that it even coversthem from payment they will now pay you. After
theft. Not all policies do. If yours does not, you areaccepting payment you surrender all rights to the
out of luck. Often, only plans with comprehensivevehicle if it is recovered. If the car is found, the
coverage will pay theft claims. However, if yourinsurance company will sell it to recoup their losses
policy does cover these claims, your company willfrom paying your claim.
move on to the next step.What about stereos and CD players? These items
If your policy does cover theft, your insuranceare common targets for thieves, but if you have one
company will contact either you or the police tostolen the insurance company might not be able to
obtain a copy of the police report. Always reporthelp you for a number of reasons. First, most police
theft to the police because they will not pay yourdepartments will not send an officer out to your car
claim without it.to make a written report unless you have a good
Next, the insurance company will likely want toidea of who stole it. Second, the fine print of most
conduct their own independent investigation. They willinsurance companies excludes claims for personal
want a statement from you, and they will willitems inside a car that are stolen. Finally, even if your
attempt to interview any possible witnesses orpolicy does cover CD players there is a good chance
anyone else who may know something about thethat the deductible will be higher than what they will
theft. They are trying to find information that maypay you since insurance companies will claim that the
exempt them from having to pay the claim under theCD player has greatly depreciated in value since you
policy, such as negligence on your part.purchased it.