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After your car is stolen.

James Goldsmith once said "If you pay peanuts, you get monkeys." If you got cheap and did not get theft coverage, you will not get anything from the car insurer if your car is stolen. Hopefully before your car is stolen you had theft insurance, esp. if your car was newer and still had book value. Comprehensive coverage (with theft) is rarely worth it if you have an older beater. Anyway, after your car is jacked:

Call the police (I know, duh).
Call your auto insurance carrier.

Now if you have theft, you will have to co operate with insurance investigators. Failure to do so could have your claim denied for fraud. Give them:

• Location and time you last saw your car
• Year, make and model
• VIN #
• Which police department you filed the report
• The police report number
• And your contact info

Ask the insurance company about how long it will take to resolve your stolen car claim. Consider the possibility that the police will recover the car in a few days. Of course the thief is not covered in your car because he took it without permission and it was done while committing a crime. You don’t need to continue insurance for the stolen car unless you get it back. If the theft is properly reported and the thief is in an accident, you are in no way liable.
Notify the bank financing or leasing your car. The company financing the stolen car will probably expect to receive car payments until they are compensated by your insurance company.

But, if the delay in settling the claim results in overpayment of car payments or insurance premiums, you can expect refunds of the overpayment plus interest. Discuss the specifics of your situation with the bank and the insurance company.

Some insurance companies wait 2-4 weeks if the stolen car is not found before authorizing the purchase of a new car. That means you could end up paying $50 per day to rent a car during the interim if you don't have rental car coverage or a car you can borrow.

If you don't have theft protection:

Give the insurer the policy number and have them cancel the insurance. Do not expect to get any money for the car.

Auto insurance; Stolen car links:
Top ten stolen cars
Vehicle Theft Insurance
Most stolen collector vehicles
Car Theft Hot Spots
Rental car insurance
Before your car is stolen
After your car is stolen

Written by Craig J. Casey

Financial Writer helping people with their insurance problems on the net since 1998.

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