Stolen car? Here’s how insurance can help

Buying a car is a great deal in itself; so much effort, time, money, and sentiments are involved in one investment. Now imagine a scenario where your beloved four-wheel companion is no longer with you; it was stolen and nowhere to be found. Depressing, right?

While you can do your part by filing a stolen car report with the police, it is also necessary to register the matter with your car insurance provider. Why? They might be able to help you by offering financial assistance. Yes, that’s true and it comes out as a strong reason for every car owner to get car insurance. You can find top car insurance providers in the Philippines here.

Also Read: No car insurance? Here’s what all wrong can happen in the Philippines

In this article, we are discussing car theft and how insurance helps minimise the impact of loss. So, without wasting any more time, let’s dive straight into the topic.

Understanding the basics of Car insurance

Car theft is not an uncommon crime in the Philippines. Though we do not have the exact statistics it is an issue without any solution. However, the severity of the situation can be lowered with the right car insurance policy on your side.

What is car insurance?
It is a type of investment that offers financial protection against car-related costs such as medical fees and damage incurred from accidents.

When we say the ‘right’ car insurance policy, we mean having coverage that offers financial aid in case of car theft. To understand this, you need to first understand the basics of car insurance.

In the Philippines, the government mandates that vehicles have CTPL (compulsory third-party liability) coverage before they are registered in the LTO. After fulfilling this requirement, car owners have the option of getting comprehensive car insurance that offers broader coverage.

CTPL	Comprehensive Car Insurance
A government-mandated insurance policy that protects the insured against third-party bodily injury or death liability arising from a car accident.	Offers greater financial protection regarding several possible risks that come with owning a car like damage to natural disasters, fire, theft, vandalism, bodily injury due to accident, etc.

Therefore, to get coverage against car theft you need comprehensive car insurance, CTPL alone is of no good in this situation. In case you have the former but aren’t sure as to what it covers, it is a good time to check.

Also Read: Compulsory Third-Party Liability Insurance (CTPL) vs. Comprehensive Insurance

Car insurance & theft

Does your car insurance offer coverage against car theft? It is a very important question for a car owner. Car theft coverage depends on the type of insurance policy chosen by the insured.

Comprehensive insurance coverage includes protection against car theft. This one goes far beyond covering accidents and offers financial assistance in events including natural disasters, fire, vandalism, and theft.

However, if you just have the basic insurance for your car, i.e., third-party liability coverage, your investment is not protected, meaning no compensation in case of theft. With this one by your side, you are only covered against the damages you have caused to the third party in an accident. It doesn’t cover damages to your vehicle, thus leaving you unprotected in the event of theft.

Car insurance & damages caused in the attempt at theft

What if someone tried to steal your car and failed? In that case, the car will surely incur damages due to the multiple attempts to open and start the vehicle. There could be broken windows, missing components (like mirrors & infotainment system), damaged locks, and more. In such a case, is comprehensive car insurance of any use?

Yes, comprehensive insurance will help you pay the cost of repair to restore your vehicle’s condition.

Car insurance & personal items stolen

What if thieves were not able to steal the car but during the break-in, they took some of your personal belongings like wallet, laptop, smartphone, or any other valuables? Will your car insurance provide any sort of coverage in such a situation?

The answer would be NO. Generally speaking, comprehensive car insurance does not provide coverage for personal belongings that were present inside the car during break-in. If you wanna get such items covered, get a personal property insurance policy or other insurance that’s applicable.

Car stolen: What to do next?

In the unfortunate scenario of your car getting stolen, there are a few essential steps to be taken, including -

Informing the police: The first and most important step after your car gets stolen is filing a police report. When doing so, make sure to provide detailed information about the vehicle, making it easy for the authorities to search and find the missing unit. Also, inform them about the last whereabouts of the car.

Car details to provide  License plate number Car make, model Body colour Any distinguishing features like stickers or scratches

Contact the insurance provider: After informing the police officials, your next step should be to call your insurance agent or visit the insurance company’s office. Make sure to carry a copy of the police report, as it is needed to process the claim.

Details/documents required by insurance  Insurance policy number  Car details Vehicle registration documents  Proof of ownership  Value of the vehicle Recent upgrades

After you submit the required documents and file the claim, the insurance company will review your claim and calculate your car’s value. If your car insurance company covers theft, you will receive compensation after the deduction of the applicable fees or deductibles.

Also Read: A step-by-step guide on how to claim car insurance in the Philippines.

Bottom line

Car theft is no joke, and the situation gets worse if you do not have a car insurance policy. We are not referring to CTPL coverage, but here, what you need is comprehensive car insurance that will help minimise your loss by offering you financial support. The claim settlement amount can be part or full, depending on your policy, car’s value, and the insuree’s terms & conditions, however, it’s better to get something over losing everything, right? So, go check your insurance policy and make sure it includes car theft coverage; if not, get one today.