Can I claim car insurance for a lost car?

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Many people may not know that we can actually claim insurance in the event that our car gets stolen or lost.

It would certainly be a bad day if you wake up and find that your car is missing or got stolen, even worse if you rely on the car for work. The loss of income on top of losing your car is certainly bound to put you in a stressful mental state.

If your car is insured, however, don't worry because you can make a claim with the insurance company. (For only insurance class 1, 2, and 2+, class 3 insurance will not cover a lost car) So, if you are covered by insurance, get in contact with your insurance company with details of your situation so that they can help you out!

Let’s take a look at how different insurance classes protect your car in case of loss!

1st class insurance

The first-class car insurance will cover both you and the other parties' damages when you're involved in a road incident. This includes accidents, fire, and theft. You will be able to make a claim based off the original sum insured detailed in the insurance plan that you have chosen. Do remember that you must have proof that you are the real owner of the stolen car!

(Photo Credit: Freepik)

2nd class insurance

Second-class car insurance theft and fire. Only the other parties' damages to their vehicles will be covered in a road incident, however. You will have to cover the cost of repairs for your own vehicle yourself.

2+ class insurance

The second plus car insurance provides coverage is similar to first-class insurance but at a cheaper premium. It will cover the repair of your car and the other parties' vehicle damage for only car-car accidents while also maintaining fire and theft coverage.

(Photo Credit: Freepik)

If the car hasn't been fully paid for and the car gets stolen, will I be liable to continue paying its installments?

According to the law, if the car was stolen while paying installments, those leasing or installment contracts will be terminated immediately. There is no need to pay the remaining installments however, you should notify your insurance company of the situation in case of any technicalities that may arise!

If your sum insured is higher than the rest of the installment, you don't have to pay for it yourself. The insurance company will cover the cost of the outstanding installments. Any difference left will be refunded to you. But if the sum insured is less than the remaining installment, you will need to negotiate with the finance company how much to pay for the remaining installments.

If you want to know what is the value of your car, get a free car valuation at Motorist! You will receive the highest price within 24 hours!

Read More: Which Type of Car Insurance is Best for a Used Car?

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