a hands-on guide from filing a car theft insurance claim to getting your vehicle expunged. walks you through the process of filing a police report, notifying your insurance company, and collecting your money after a 30-day wait, complete with examples.
table of Contents
- my car was stolen, will my insurance cover it?
- what to do immediately after discovering the theft
- why you should wait 30 days
- when to register the vehicle for expungement
- how Much Insurance Money Can You Get
- frequently asked questions
- prevention is the best defense against theft
last month, my coworker Darryl Kim discovered that his car was missing from the parking lot at work. He was devastated because he'd been saving it for nearly a decade, but luckily, he had auto insurance and was able to file a claim. However, he didn't know the process and wasted time.
auto theft insurance is something that many people overlook. today, we're going to break down the details of what to do if your car is stolen and how to file a claim.
if Your Car Is Stolen, Will Your Insurance Cover It?
the bottom line is that if you have auto insurance, you're covered for car theft. about 73 percent of cars in the U.S. are insured, so most are covered.
however, it's important to note that you'll only be covered if the entire vehicle is stolen, not just parts like wing mirrors or tires. Also, if you're clearly at fault, such as leaving your car unattended or leaving the keys in the ignition, you may not be covered.
what to do as soon as you discover the theft
once you've confirmed that your car has been stolen, the first thing you should do is report it to your nearest police station or precinct. get a theft report confirmation from the police detective department, which is formally known as an incident report and will be the key document in all subsequent proceedings.
at the same time as filing a police report, you should also contact your insurance company immediately. article 657 of the Commercial Code stipulates that you must notify your insurer without delay when you become aware of an insured event. if you delay notification and your stolen vehicle is involved in an accident with a third party, the damages could be high, so it's very important to notify them quickly.
why wait 30 days?
a common question many people ask is this: why can't I get paid immediately after reporting my car stolen? The answer is because of the chances of the vehicle being recovered.
you have to wait 30 days from the date you report it stolen to the police before you can file a claim. during this time, the police have a chance to find your vehicle, and it's not uncommon for them to find it in as little as three or four days. If your vehicle is found within 30 days, you won't receive a payout, but you may be able to recover the cost of repairs if your vehicle is damaged.
to file a claim, you'll need to provide your insurance company with your theft report, ID, and proof of expungement. once the documents are received, the claim is usually paid within seven days, and the entire process takes two to three weeks.
when to register a vehicle expungement
you can apply for an expungement registration at your local DMV within one month of your vehicle being stolen. the expungement will stop charging car taxes and insurance from that day forward, saving you from unnecessary expenses.
to apply for an expungement registration, you will need a theft report certificate issued by the police chief, your vehicle registration, and an expungement registration application form. don't worry, it's a legitimate procedure based on Article 13 (7) of the Automobile Management Act.
if the vehicle is later found, you can reapply for a new registration within three months, and the registration license tax will also be exempted.
how much can I get?
vehicle theft coverage is a total loss, which means you'll receive the full value of your vehicle. the payout will be based on the base value of the vehicle as determined by the Insurance Development Institute at the time of the accident, or the market value of a used car if it's worth more.
however, depreciation applies, so it may be lower than the value at the time of the contract. it's also worth noting that there's no deductible when you file a theft claim.
if your vehicle is recovered after you receive a claim, you have two options. you can either return the policy and get your car back, or you can surrender the car to the insurer and keep the policy. if you have any remaining financing, the insurance proceeds will be used to pay off your loan first, so you'll need to consider that as well.
frequently asked questions
Q1. Can I get car theft coverage without my own car insurance? A. No. You can only be covered for theft if you have auto insurance. you cannot be covered by your personal property insurance alone.
Q2. What happens if I file a false theft report? A. Under the Misdemeanor Punishment Act, you can be fined up to 100,000 won or imprisoned, and criminally punished for innocence or obstruction of justice. in 2023 alone, KRW 570.4 billion was recovered from auto insurance fraud, and 155 suspects were arrested for intentional accidents.
Q3. How long is the statute of limitations for filing an insurance claim? A. You must file a claim within three years from the date of the cause of action.
Q4. What if my vehicle is used in a crime after being stolen? A. If the theft is properly reported and the insurer is notified, the owner is not liable. However, if the vehicle is found with drugs or other illegal substances, it may need to be scrapped.
Q5. Will my insurance premium be increased? A. There is no premium surcharge unless the vehicle owner is clearly at fault.
theft prevention is your best defense
reporting your car stolen can be a cumbersome and time-consuming process. prevention is key. always lock your doors when you park, don't leave your keys in your car, and consider installing a dashcam and GPS tracking device. Try to park in a controlled parking lot with CCTV rather than in a less populated area.
if you are unfortunate enough to have your car stolen, don't panic, just follow the steps outlined above. as long as you remember to file a police report, notify your insurer, wait 30 days, and register your vehicle for an expungement, you should be able to deal with a stolen vehicle without too much trouble.
if you need further advice, please contact your insurer's customer service or the Financial Supervisory Service Center for Insurance Complaints. keep your car safe and secure.