- Basic auto insurance coverage isn’t enough to protect against theft
- How does car theft affect my auto insurance premium?
- How to report a stolen vehicle and file an insurance claim
- Preventing auto theft
Each year, the Insurance Bureau of Canada (IBC) provides data to Equité Association, which publishes the Top 10 Stolen Vehicles in Canada List.
That’s not a list you really want your vehicle to be on. Fortunately, there is auto insurance coverage available to protect against vehicle theft, or attempted theft.
If your vehicle is at a higher risk of being stolen, there are a few things you should be aware of when it comes to the coverage you require and how your car insurance rate may be affected.
Basic auto insurance coverage isn’t enough to protect against theft
The mandatory minimum insurance coverage (liability coverage) drivers have to carry unfortunately will not cover replacement costs if your vehicle has been stolen.
In order for your insurance company to cover the costs of replacing your vehicle after a theft, or attempted theft, you will need to add optional comprehensive car insurance, all perils, or specified perils coverage to your policy. These coverages will pay for specific losses beyond those covered by collision coverage. Keep in mind that a deductible may apply to these coverages when making a claim.
How does car theft affect my auto insurance premium?
Your vehicle model is assessed annually according to its theft and claim risk through the Canadian Loss Experience Rating (CLEAR) system. A model at higher risk of theft can play a part in a higher premium. You may also face a higher rate if the area you live in has a lot of vehicle theft claims.
If you choose to add comprehensive coverage to your policy, or if you’re dealing with a rate increase after buying a high-theft-risk vehicle, comparing car insurance rates and coverage options is the best way to find an affordable premium.
If your vehicle is stolen, your insurance premium shouldn’t increase dramatically just because you made a claim. However, making repeated claims in a short period of time can lead to a rate increase or, worse, the removal of theft coverage from your policy.
How to report a stolen vehicle and file an insurance claim
If your vehicle has been stolen, you will need to report it to the police immediately. When filing a claim, provide the police report number to your insurance provider along with your policy number.
Your insurance provider will also want to know where the vehicle was stolen. From there, your claims advisor will determine if you have the correct coverage and walk you through the claims process.
If your vehicle is stolen and you’ve filed a report and a claim, it may take a few days before the process gets underway. Time is allotted to determine if the vehicle can be found first. So, insurance payouts may take time to complete after the claim is initiated. During this process you would likely also have to pay your deductible. However, the amount of the deductible will vary based on each individual policy.
Preventing auto theft
If you drive a vehicle at high risk of theft, there are a few things you can do to help prevent it from being stolen.
Using anti-theft devices, parking your vehicle in well-lit areas, installing an immobilizer to prevent hot wiring, and installing a location tracker are all highly effective precautions you can take.
And of course, locking your windows and doors every time you exit your vehicle is always a great first defence against theft.
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Keyword: Can vehicle theft affect your auto insurance premium?