A guide to stolen auto claims

It is essential to that you are aware, understand and stick with to the security demands, such as immobilizers or tracking devices, stated in the police when buying Car Insurance. Keep all certification to authenticate non-standard security items that have been added to your motor, such as a gear lock, alarm or tracking device. In the incident of your vehicle being stolen it could result in the denial of a claim if you do not meet the policy conditions.It is just as important to follow the correct procedure in the event of your car being stolen. It is required by all the insurers, that when you discover that your car has been stolen, that you at once report it the the police. As owner of the vehicle the responsibility is on you to prevent further loss and assist in the recovery of the car.A file number must be obtained by the police and a theft case have to be opened. Failure to do so could endanger your right to claim from the insurance company and could be construed as committing fraud. Any delay in notifying the police will increase the chances that the burglars will get away by giving them more time to get away with the motor.If your car was stolen from a parking lot where there is security then you have to report it to the security office so they can vouch that security was in place.Demand for written confirmation or this notification and then inform your insurer at once. Provide them with the appropriate documents for non-standard security items and if the car was driven by any other individual than the insured at the time of the theft provide them with a certified copy of the driver’s license and identity documentation of the driver.If your vehicle is subject to a purchase to hire or lease then you should notify the appropriate financial institution. You still have an responsibility to keep up the monthly repayments both on your vehicle debt and insurance policy until your claim has been settled in full so you will have to determine the outstanding loan in mind.If the insurance remunerate compensates you for your loss in the time that the motor is not found then you are no longer the owner of the stolen vehicle. The insurers would have noted their interest on the policy and would have to settle any unpaid debt before paying out the balance to you if the car was subject to a hire Purchase or Installment Sale.The stolen motor is now the property of the Insurance Company and if the car is found subsequent to your claim been paid the vehicle must be handed over to the Insurance Company. If you do not do this then it is considered as fraud and a criminal offense.Most insurers give the insured first option to buy back the stolen motor if and when it is found. If you are interested in going for this alternative then you should be conscious of circumstances that could significantly impact on the value of the recovered car.Before the insurance company paid our claim then the vehicle would have been scrapped. The car will need to be registered as a Code 3 car and identified as a Built Up car on the registration certificate if it has to be re-selled. If the VIN number has been tampered with then the police will assign a new VIN number beginning with AAPV. No dealer will pay the full market price for a vehicle and therefore you must ensure that if you buy back your vehicle that you get a considerable discount on the market value thereof. To avoid over-insurance this asset, make sure that you insurance the re-purchased vehicle at the price that you paid to buy it from the insurers.

31 January 2009 | Business