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How Does Car Theft Affect Insurance Premiums?

Car theft can occur anytime, and this can happen to anyone. The impacts of car theft are many and may include an increase in your auto insurance premium.

Car theft usually happens at night in private driveways but can also happen during the day at shopping centres and busy parking lots. Thieves will search for cars whose owners will be away all day, which will give them more time to operate discreetly, and the theft will not be reported until several hours later. 

The newer a vehicle, the higher the risk of theft, and insurers will consider this information. They will assess risk factors, including the theft potential of your car’s model and make, and will provide you with a rate based on this information. 

What to do:

It is recommended that you install a tracking system to counter theft and prevent premium increases with an insurer. A wireless identification and tracking device can be installed in your vehicle so that the devices can be traced within a very wide radius if it’s ever stolen. Parts can also be marked or identified, especially ones that are popular for resale, so it would be easier to identify a stolen part. 

The insurer can ask that a tracking system be installed for certain vehicle types when insuring a vehicle. If you agree, you will experience several advantages, including a significant decrease in the risk of theft and fewer inconveniences following the theft. There will also be a greater chance of locating your vehicle, so it’s a step worth considering. The reduction in premium often compensates for the purchase cost of the device, and you will always have peace of mind.

Before a tracking system is installed, ensure it is recognized by your insurer as there are a number of systems in the market, but not all of them will be accepted. Your insurance discount will be applied once you confirm the installation with your insurer, so don’t forget to contact your insurance company immediately. 

If your car is stolen:

Call the police as soon as you realize your car is no longer in the area where you parked it. You will have to report the theft scene, and a police report will be required before contacting your insurer. You will then have to call your insurance company to tell them where the theft occurred and provide them with the police report number. You can also provide them with contact information for any witnesses to the theft, along with your insurance policy or car insurance certificate number. Look around and see if there were any cameras in the area that may have captured the incident. 

Once you have contacted the insurance company, they’ll proceed with the claims process and arrange a rental car for you.

If you are looking for car insurance, Leibel Insurance can help. We specialize in auto insurance, and our brokers will ensure you have the coverage you need, so contact us today for more information!

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