Stolen Car Insurance Claim Investigation

Stolen car insurance claim investigation is the process of investigating your car theft claim by the insurance company. It’s just a harmless process to find out more about your claim.

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Before filing an insurance claim for your stolen car, you must know about the stolen car insurance claim investigation. Otherwise, you might have to take a lot of stress.

However, don’t worry. In this post, I am going to provide every little detail about the stolen car insurance claim investigation, the stolen car investigation process, how long does a stolen car investigation take, and why the stolen car insurance claim is denied?So, stick here till the end.

Check Out Does Auto Insurance Cover Non-accidental Repairs?

Let’s start by finding out if your car gets stolen does insurance cover it?

In This Post

Do Insurance Pay For Stolen Cars?

Yes, insurance pays for stolen cars. However, there is a catch. Not all insurances pay for stolen cars. So, what insurance covers if your car is stolen?

Insurance companies only pay for stolen cars if you have a comprehensive car insurance plan. Comprehensive car insurance covers damages to your car that are not the result of a collision. For example, it pays for

Theft

Vandalism
Natural disasters and other similar incidents

So, to file a claim for a stolen car, you have to have comprehensive coverage.

On the other hand, if you have only liability insurance for your car then your insurance company will not cover the losses for your stolen car.

So, now we know the answer of, if my car is stolen will insurance cover it? At this time let’s look at the stolen car insurance claim investigation process.

How To Claim Insurance for Your Stolen Car

So your car’s been stolen and you have comprehensive car insurance. But how to perform a stolen car insurance claim?

Well, follow the below process carefully.

Firstly, you must call the police and report the crime as soon as possible. They’ll take down all the details and begin their investigation.
After reporting the stolen car to the police, you can contact your insurance agent.

To claim insurance for your stolen car, you’ll need to submit a police report and strong evidence of the theft.
You will also need to provide your insurance company with a copy of the car’s title, registration, and proof of insurance.
Then you need to outline the damage to your vehicle and submit it to your insurer.

You will be asked a few questions. Answer them properly and your insurance company will then work with the police to start the investigation process.

Just remember to call the police and report your insurance company as soon as possible. Because many insurance companies have a limited time frame to finalize the claim.

Now that we know about the stolen car insurance claim. So, it’s time to find out about the stolen car insurance investigation process.

As there are a lot of false car insurance claims, so every stolen car insurance claim gets investigated thoroughly.

The process of a stolen car insurance claim investigation can be long, complicated, and frustrating. So, you need to be really patient. Let’s have a look at the investigation process.

The first thing you need to keep in mind about a stolen car insurance claim investigation is, that you will be the prime suspect in the crime. As a result, the insurance investigating agent/adjuster might ask you many uncomfortable questions. Your statement will also be recorded. So, be prepared for them. Now let’s look at stolen vehicle investigation questions.

Stolen Vehicle Investigation Questions

The questions your insurance agent asks during a stolen car insurance claim investigation will depend on your specific situation. However, below here is a list of possible questions for the stolen car investigation process

When have you last seen your car?

When did you discover your car was stolen?
Where was your car stolen?
Is the area of the incident CCTV covered?

Is there any evidence of the car being stolen?
Was there any spectator?
How long was the car situated at the spot?

How long did you take to report the incident?
What is your Police report number?

Moreover, there can be may more questions related to the below topics

A thorough description of the stolen event.
Date, possible time, and location of the car before it went missing.
Your Car Model, color, year of purchase, current mileage, and others.

Minor details of the stolen car like the doors locked or not, alarm engaged or not, etc.
Questions related to the police report.

The questing and investigation process might vary depending on your insurer’s policy.

While answering the question, be very patient and careful. As the adjuster has already talked to the police and knows about the police report. As a result, all of your answers have to match the police report.

If you tell them the absolute truth while cooperating with the police and insurance company then the insurance authority will remove you from their prime suspect. Otherwise, they have an entire department to investigate you.

After questioning you the insurance company will try to find the stolen car with the police. This will take a few days.

What Not to Say to an Insurance Investigator?

First of all, you should never lie to your insurance investigator. However, there are some other things that you must not say to an insurance investigator. Some of them are

Never speculate or guess about the cause of the incident in front of the investigator.
Don’t admit fault or liability.

Never inflate the value of any items that were in your car when it was stolen.
Don’t provide any misleading information.
Never discuss any confidential information or personal details that are not directly relevant to the investigation.

These are the things you must not say to your insurance investigator during stolen car insurance claim investigation. So, what happens if you lie about your car being stolen?

What Happens if You Lie about Your Car Being Stolen?

When you lie about your car being stolen you commit hard car insurance fraud. If an auto theft expert investigates and find your claim to be false you will be charged with insurance fraud.

Find Out Car Insurance fraud Punishments

The insurance companies are the most to lose when your car is stolen. Because they have to pay for it. So, they appoint an auto theft expert to investigate your claim. When you lie they will most probably catch you and depending on the severity of the lie you will be charged with insurance fraud.

So, if you lie about your car being stolen, you will most likely end up paying a fine or in jail.

What is an Auto Theft Expert?

An auto theft expert is a person who has specialized knowledge and training in the investigation of vehicle theft crimes.

Most auto theft experts have a background in law enforcement or private investigation. So, insurance companies use their expertise to investigate and in some cases recover stolen vehicles.

Stolen Car Insurance Claim Investigation Process Infographic

Here is a short infographic of the entire process

But What are the steps of claim investigation?

What are the Steps of Claim Investigation?

The steps of claim investigation is quite similar to any other investigation. But the investigation will be done regoriously. Because the insurance company will be paying you are large sum. Here are the steps of a claim investigation

First, the insurance investigative agent will talk with law enforcement and take note of the essential details.
Then they will ask you questions about the incident in detail.

After that, they will visit the crime scene and look for any CCTV footage and witnesses.
They will analyze the CCTV and witness statements.
Lastly, after looking at all the proofs they will come to a conclusion.

But Who does the investigation of loss is done by?

What is the Name of the Insurance Investigator?

The investigation is done by Insuarnce Investrigation officers. They are mostly retired law enforcement officers. So, insurance claim investigation is done in a pretty meticulous way. Becuase these investigation officers are paid well and they will receive good incentive if they can find false claims.

So, all information is processed with absolute priority. As a result, do not hide any detail from your insurance investigation officer. So, how long does a stolen car investigation take?

How Long Does a Stolen Car Investigation Take?

Normally, an insurance company takes at least 30 days for a stolen car claim investigation. However, it depends on multiple factors. Because an insurance company will investigate until they get satisfactory results or they get proof that your car is truly stolen.

Moreover, different states have different laws regarding this and different insurance companies have different policies.

As a result, a stolen car insurance investigation process can take as much as 3 months depending on your state law.

Stolen Car Insurance Payout Calculator

As there are thousands of car models and insurance companies. Moreover, every car has different history and condition. So, it’s near impossible to make a stolen car insurance payout calculator. However, I can help you with How does an insurance company determine the value of a stolen car?

How does an Insurance Company Determine the Value of a Stolen Car?

After the insurance company finds your claim for a stolen car to be true. They start to determine the value of the vehicle. Here are some of the factors that may be considered

Actual Cash Value

The insurer will usually calculate the ACV of the stolen car, which is the fair market value of the car just prior to the theft. They will take into account factors such as

The make
Model of the car
Its age

Mileage
Condition
Aftermarket upgrades or modifications.

Comparable Sales

The insurer might also look at the sales of comparable vehicles in the area to determine the value of the stolen car. They may use databases or online resources to find sales of similar cars in the same geographic area and adjust for differences such as mileage and condition.

Vehicle History Reports

The insurer may also look at the vehicle history report to determine the ACV of the stolen car. This report can provide information on the car’s ownership history, accident history, and other factors that can affect its value.

These are some factors upon which your stolen car value will be determined.

But what happens after the investigation process? And my car was stolen how long before insurance pays?

let’s find out how long does it take for insurance to pay out on a stolen vehicle?

How Long Does Insurance Take To Pay For A Stolen Car?

After the investigation process generally it takes 10 days for the adjuster to determine your loss and start negotiating with you. After you come to an agreement with the adjuster, you will be paid for your stolen car insurance claim.

So, in total it can take an insurance company 40 days for a stolen car insurance payout.

However, the time frame depends on your state law, the insurance company policy, and the investigation result. As a result, there is no fixed time frame for the entire investigation and payout process. It can take as low as 10 days or as high as 3 months.

Now let’s look at What happens if stolen vehicle is recovered after insurance payout?

What Happens When Your Car Is Stolen Then Found After Insurance Claim?

If your car is found during the investigation process then your comprehensive car insurance will pay for the damages done to the stolen car. On the other hand, if your car is found after your insurer has paid you then you need to settle with your insurance company.

But what about personal belongings?

Comprehensive car insurance does not cover the damages to the personal belongings inside the car. However, if you have a homeowner’s or renter’s insurance then you will be paid for the personal belongings too.

The insurer will still pay for the damages done to the car but you need to pay back the rest of the money you got from them.

By this time we have got an idea about the entire investigation process.

If my car was stolen and recovered do I have to take it back?

Yes, in case your car is stolen then you have to take it back even if the insurance paid you. You need to pay back your insurance provider and take the car back. However, any damage to the car will be covered by insurance.

Does Insurance Cover Stolen Car Parts?

Yes, full coverage auto insurance and comprehensive car insurance will pay for your stolen car parts. However, different insurance companies have different policies regarding stolen car parts.

So, before purchasing a comprehensive or full coverage insurance premium make sure your policy pays for stolen parts. But what if I have full coverage and my car is stolen?

What Happens if Your Car Gets Stolen and You have Full Coverage?

If you have full coverage insurance and your car gets stolen then you will be fully paid for your stolen car. However, before that, the insurance company must investigate your claim. When the insurance company finds your claim to be true they will set an adjuster to determine your car price. Then you will be paid.

Why My Stolen Car Insurance Claim Denied?

There can be many reasons behind getting your stolen car insurance claim denied. Some of the reasons can be your claim not being covered by the policy, a false claim, does not comply with the insurer’s policy.

The first one can be you have only liability insurance for your car, not comprehensive car insurance. If this is the case, you will never get paid for the insurance claim.

The second reason can be your insurance claim does not comply with your insurer’s policies.

The last reason might be your adjuster suspects you of a false car insurance claim. If this is the case then you have to be careful and tell them anything you haven’t told them yet. Moreover, if your claim is not true then you must withdraw your false car insurance claims.

False Car Insurance Claims

According to a recent article by Friss

“In 2022, 20% of all the insurance claims in the US are fraudulent“

So, you might get an idea of how much car insurance fraud happens every year. This is the reason many genuine claims even get rejected. On the other hand, submitting false insurance claims can lead you to pay 2-3 times the amount you got plus a heavy fine and jail time depending on your state law.

Now there comes a question: can you cancel a car insurance claim under investigation?

Can I Cancel A Car Insurance Claim Under Investigation?

Yes, you can cancel a car insurance claim under investigation. You just need to talk with your insurance adjuster and tell him everything clearly. Then your adjuster will take steps according to the company policy.

If you cancel a false claim during the investigation then you will not be charged under any law. Moreover, withdrawing a claim that is under investigation will not cost you anything. Your insurer will just close your claim files and won’t pay you anything.

In Summary

Both stolen car insurance investigation and your car getting stolen can be tiring for you. But if you are honest and patient then you don’t have to worry about it. You’ll get paid.

Lastly, if your claim is denied then please talk to an insurance expert for more help. Because only an expert can suggest you the next moves based on your state laws.

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Stolen Car Insurance Claim Investigation – Secrets You Must Know In 2024