What to do if you are a victim of car theft

Car insurance serves to provide you with financial cover if your car gets stolen or hijacked, but what steps should you follow after suffering such a loss? Here’s a step-by-step guide, plus tips to reduce your likelihood of becoming a victim of car theft.

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My car has been stolen! Now what?

Many people become panicked and flustered when their car is stolen or hijacked, but it is, unfortunately, an all too regular occurrence in motoring life. Take a deep breath and follow these recommendations:

1. Contact your vehicle tracking company. If your car was bought through a vehicle finance agreement, many vehicles must have an anti-theft vehicle tracking device to qualify for car insurance.

2. File a police report. Remember that you must provide specific information, including the number of your driver’s license, vehicle registration details, the make, model and colour of your car, as well as the vehicle’s identification number (VIN). The best advice is to keep all this information in a safe place so you can easily retrieve all of it in case of an emergency, such as a car accident or vehicle theft/hijacking.

3. Notify your insurer. Once you’ve filed the police report, you must contact your car insurance company. The firm’s consultant will also require details from you, including the relevant police case number and ask for details such as where the car was parked/located and when it was stolen/hijacked.

4. Investigation. Once all the reports have been processed, the police and insurance company will investigate.

5. File a car insurance claim. You can file a theft-related car insurance claim if your vehicle is not recovered within the allocated time. Depending on your policy, your insurer will cover the trade, retail or replacement value of your stolen vehicle (if you own it outright) or settle your car-finance agreement based on the value of your car and pay the remainder of the claim into a designated bank account.

6. Excess and cover limits. Please note that you may be responsible for paying an excess before your insurer will pay out your claim. More: Car Insurance Tips: The Excess & Deductibles

Most car insurance policies cover car theft. More: How to Distinguish Between Types of Car Insurance

What will the insurance company pay out?

The sum that your car insurance company will pay out for a theft-related claim will depend on the value of your unrecovered vehicle (as stipulated in your policy) and your excess.

Therefore, be sure to read your car insurance policy thoroughly and speak to your consultant, if necessary, to understand your coverage and any potential payouts in the event of a theft.

The likely insurance payout for a stolen car will also depend on the type of car insurance policy you have. Comprehensive- and 3rd-Party, Fire and Theft car insurance cover theft, but 3rd-Party Only does not.

If your car is not recovered, your insurer will pay you out the stipulated value of your vehicle, minus the excess. The actual cash value is usually the market value of your vehicle when it was stolen. That value is based on factors such as the car’s age, its general condition and mileage at the time it was lost.

A new car will, for instance, receive a much higher payout than an older car. The excess refers to the amount you must pay out-of-pocket before your car insurance will pay out a claim.

More: How To Work Out Car Insurance Excess & Deductibles

Ways in which to deter car theft

Car theft remains a major worry for South African motorists and, therefore, the short-term insurance industry. There isn’t a quick fix for this problem, but being vigilant and implementing added security measures are probably the best ways to keep thieves at bay – the more deterrent there are, the better.

Following some of these safety tips and precautions can help deter car thieves:

Be aware of your surroundings. If you notice any suspicious activity or behaviour, leave the area immediately
Park in safe, well-lit areas that preferably have on-site security. Avoid parking in secluded places, even if you are in a bit of a rush
Don’t leave valuables in your vehicle. Laptops, phones or bags left in plain sight could be a target for thieves who make break your window to get in. If you must leave valuables in your vehicle, ensure they are stowed away from sight or locked in the boot/load bay
Invest in anti-theft devices, such as an alarm system, gear lock or immobiliser
Install a vehicle tracking system
Keep your keys secure. Don’t leave your keys in an easily accessible location
Repair broken windows or locks as soon as possible
Check that your car is locked. Be mindful of remote jamming, especially at busy malls and shopping centres
Make sure your vehicle’s doors are locked while you are driving it

Ensure your insurance policy is up to date

Do you want to learn more about car insurance or review your car-insurance requirements with the help of experts? Budget Insurance’s team is always ready to assist; contact them on 086 1600 120 or utilise their online car insurance calculator, which gives you an accurate and budget-friendly quote in minutes.