Car Theft: Does Insurance Pay? How Much? And How to Handle It

(Photo Credit: freepik)

What to do if your car gets stolen? When the unexpected happens, like your car being stolen, apart from figuring out how to handle the situation, you might wonder, "Does insurance cover car theft?"

and "What should I do if I don't have insurance or if my policy doesn't cover theft?" This article will answer all your questions about handling car theft and what compensation you might be entitled to.

Does Insurance Cover Car Theft?

In the case of car theft, whether through robbery, burglary, or embezzlement, car insurance will pay full compensation as stated in your policy, unless it can be proven that the theft was due to the policyholder’s gross negligence. This is outlined in Section 879 of the Civil and Commercial Code, which states that the insurer is not liable for damages caused by the policyholder's fraud or gross negligence.

Which Insurance Policies Cover Car Theft?

• Comprehensive Insurance (Type 1): Offers the highest and most complete coverage, including accidents (with or without a third party), fire damage, natural disasters, and theft. Compensation is provided according to the agreed insured amount in the policy.

• Type 2+ Insurance: Covers both the insured's vehicle and third-party vehicles, as well as theft, fire, and natural disasters. Compensation is paid based on the insured amount.

• Type 2 Insurance: Similar to Type 2+ but with different coverage conditions. It covers fire, flood, theft, and loss, but only for third-party damages, not for the insured's vehicle.

(Photo Credit: freepik)

What to Do if Your Car Gets Stolen?

• Stay Calm and Gather Information

If your car was stolen in a location with security cameras, such as a shopping mall or apartment, contact the security personnel to review the footage and inquire about any suspicious activities. Gather all necessary details about your car, such as make, model, color, license plate number, and any distinguishing marks. Then, report the theft to the police.

• Notify the Finance Company (if the car is financed)
  

If you're still making payments on the car, inform the finance company about the theft. They will provide you with a power of attorney document to file a criminal report with the police and return the report to the finance company.

• File a Police Report

After gathering all the necessary information, head to the nearest police station to file a report. Provide all the details to help the authorities track down the thief and issue alerts to recover your car.

• Notify Your Insurance Company

If you have an insurance policy that covers theft, inform your insurance company immediately to begin the claims process. They will assess the incident and compensate you as per your policy.

• Spread the Word on Social Media

After notifying the relevant authorities, share the news of your stolen car on social media platforms like Facebook or X (formerly Twitter), using relevant hashtags to ask for help. In addition to the police, social media "detectives" can be a great resource in finding your car quickly.

• You can also contact the following agencies to report the theft and request assistance:
  • Traffic Radio Station (JS 100): Call 1137
  • Ruamkatanyu Foundation: Call 1677
  • Anti-Car Theft Center Hotline: Call 1192
  • S.W.P. 91 Radio Station: Call 1644

Staying calm and providing complete information will increase your chances of recovering your vehicle quickly.

How Much Will Insurance Pay for a Stolen Car?

If your stolen car cannot be recovered, you may claim up to 80% of the market value of the car, with about 20% depreciation deducted. The insured amount is based on the car's value when the policy was taken out. For example, for a car valued at 790,000 THB, the maximum compensation would be 632,000 THB, depending on the insured amount stated in your policy.

Do You Still Have to Pay for the Car if It's Stolen?

If the car is still being financed, many wonder if they must continue paying installments. According to Section 567 of the Civil and Commercial Code, if the leased property is lost, the lease contract is terminated. This means that the lease agreement is void, and you are not required to make further payments. However, this doesn’t mean you won’t have to compensate for the car, depending on the following conditions:

• If You Have Insurance Covering Theft

The insurance company will cover the remaining installments up to the insured amount specified in the policy. If the total remaining payments exceed the insured amount, you will be responsible for paying the difference.

• If You Don’t Have Insurance or Your Policy Doesn’t Cover Theft

You may choose not to continue making payments. However, the finance company can file a lawsuit, and the court will determine how much compensation is owed based on the case details.

While no one wants to face the distress of a stolen car, having insurance that covers car theft can alleviate a lot of stress. If your car is stolen, having proper information and following the right steps will help you handle the situation effectively and maximize your chances of recovering the vehicle or receiving compensation. Even if your car is not recovered, receiving financial compensation from insurance is better than losing everything.

Read More:  Driving Safely at U-Turns: Techniques and Precautions

Looking for a  car appraisal?  You can contact us for a free car valuation within 24 hours…