This can’t be happening.

It’s happened to all of us.  We walk out of the mall and head directly to the spot where we know we parked our car only to find it’s not there.  Oh wait, maybe it was a couple rows over.  You start to feel this heavy weight on your chest and heat rises to your face.  You locate your keys and click the fob only to hear the most beautiful sound on earth.  BEEP.  You feel an immense sense of relief as you turn on your heal and head in the opposite direction to locate your car.  A couple more beeps and you’re reconnected with something that, until a few panicky minutes ago, you didn’t realize was so important to you.

What if it is?

But what if clicking your key fob doesn’t produce a reassuring beep and you eventually come to realize that your car has been stolen!  What do you do?

First things first.

Call the police immediately.  Once they have completed their report the second thing you do is call your insurance broker. Once your broker has confirmed that you have comprehensive coverage on your vehicle they will then take down all the details of the theft and contact the insurance company to get your claim started.  They might even be able to directly link you in on a call with an adjuster (the person handling your claim).  The insurance company then writes you a check, which you take to a local car dealer who arranges for you to purchase the car of your dreams, right?  Not quite.  There’s a little more to it but hopefully understanding the process will take a little of the stress out of things.

The claims process.

First of all, everyone is hoping your car will be quickly found and returned to you in the shape you left it.  Hopefully you purchased rental car coverage when you bought your policy.  Your broker can confirm if you have this coverage.  Assuming you do, the Ontario Auto Policy actually has a clause in it requiring 72 hours to pass before the insurance company is required to provide you with a rental vehicle.  We agree that this is a little strange which is why some insurance companies may waive this requirement but you should be prepared to make arrangements for alternate transportation for a few days.  If you haven’t purchased rental car coverage sorry but you will need to come up with another way to get around until the claim is settled.  Keep in mind that even if you do have rental car coverage there is a limit to either the length of time you can have a rental car or the amount of money you can spend on one.  If it takes longer to settle your claim and your rental coverage runs out you may find yourself without a car for a while.

How long will this take? 

You can start doing your research on a new car but don’t go ahead and buy one just yet,  your car may still show up.   The insurance company will also require a certain amount of time to let the police investigate before they determine that your car is gone for good.  Different insurance companies will have different amounts of time before they are ready to settle your claim as a total loss.  At the time of writing this we are seeing anywhere from 15 to 30 days for this to happen.

So what happens if your car is found?

Well, if it was just a joy ride and your car doesn’t have any damage it will be returned to you and you’re on your way.  Don’t forget to let your insurance company know so that they can close their file.  If it came back with some fresh new dents or even major damage your insurance company will direct you to a local body shop where the adjuster will make an assessment of the value of the damage.  The adjuster may visit the body shop to do this or they may even accept photos and an estimate from the body shop.  You are allowed to take your car to the body shop of your choice but the insurance company will likely recommend one of their preferred shops.  These preferred shops usually have agreements in place with the insurance company that can help to streamline the claim and make things move a little quicker.

Once the insurance company has approved the repairs they will be completed by the body shop and paid for by the insurance company minus your deductible which you have to pay directly to the shop.  Beware, you may also have to pay depreciation on tires and some parts that are subject to wear and tear.  “Betterment” charges may apply if the repairs to your vehicle make it significantly better than it was before the accident!

What happens if my car is never recovered?

Once the required time has passed your insurance company will advise you that they are going to consider the theft of your vehicle as a total loss.  At this point they will offer you a cash settlement based on the Actual Cash Value (ACV)* of your vehicle  and you will be responsible to purchase a replacement vehicle.  If you purchased the Limited Waiver of Depreciation endorsement on your vehicle make sure your adjuster has taken this into consideration when calculating the amount they offer as it will result in a higher payment (generally only vehicles that you purchased new qualify for this coverage and only for 2 years after purchase with an option to buy up to 5 years).  Remember that your rental car coverage ceases as soon as the insurance company has made this offer so it helps to have done some research on the vehicle you want to purchase in advance.

Coverage will be left on your stolen vehicle while it’s either being repaired or while the insurance company is determining if there will be a total loss.  If it is a total loss you will receive a refund on your premium from the time of the disappearance of your vehicle to when you replace it with a new one.

Some of the small print

* “Actual Cash Value” (ACV) = The amount necessary to replace your vehicle with a comparable used vehicle. (The total mileage, age, overall condition and average retail selling price of your vehicle will all be considered in determining its actual cash value.) + applicable sales tax.

Note: If you’ve recently completed work on your vehicle that you think would increase its actual cash value, tell your claims adjuster. He or she may ask you to provide receipts to help the insurance company determine your cash settlement.

Recognize that repairs needed to maintain your vehicle in good running order may not increase the actual cash value of your vehicle.

Your insurance company will not pay more to repair your vehicle than its actual cash value at the time it was damaged, less the deductible specified on your Certificate of Automobile Insurance.

Colley Insurance is by your side

If you have any questions throughout the process please contact your broker and we will be happy to help.

Disclaimer – The above information is for descriptive purposes only.  In the event of a claim your policy wordings will apply.