What happens to insurance when the stolen car is recovered?

Want to know what happens to your insurance when your stolen car is recovered? Keep reading this article and find out the answer to this and other related questions.

Everyone knows that when an insured vehicle is stolen or robbed, the first step is to file a police report, and the second is to activate the auto insurance.

However, not everyone knows what happens when the vehicle is found or not. In other words, what to do with a damaged car.

Did you have your vehicle stolen, you activated the insurance, it was recovered and now you don't know what happens to the insurance in this situation?

Don't worry, this is a very common question and it will be solved in this article, follow along.

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Find out how theft or robbery claims work

Everyone who has insurance knows that if their car is stolen or robbed, they need to file a police report and then activate the insurance.

In these cases, when the vehicle is not found within a certain period, which is normally around five to seven days, the insurer will have a maximum period of 30 days to compensate the insured as provided for in the policy for car theft.

When the vehicle is not recovered and the insured is fully compensated, the car insurance is canceled.

This happens because the insured asset (the car) is no longer the responsibility of the policyholder.

However, when we talk about cases of theft or robbery, that is, of a recovered vehicle, the car needs to undergo an assessment so that the best solution can be found.

If it is damaged and the repair value is equal to or greater than 75% of the current purchase value of the model on the market, the vehicle will be considered a total loss and the insurer must pay full compensation, as in cases where the vehicle is not found.

In this situation, as in the previous one, the insurance is cancelled.

However, in cases where the car is found with damage that does not reach this margin of 75% of its purchase value, it is sent to a workshop, repaired and returned to the insured.

It is worth remembering that this procedure takes place upon payment of the deductible.

What should I do when a stolen vehicle is recovered?

When your insured vehicle is stolen or robbed, you need to file a police report, contact the insurance company and wait.

The deadline given by the insurance company for the car to be found is usually between five and seven days, and it usually varies from one company to another.

This rule is common among companies, whether Suhai Insurance Company, MAPFRE Seguros, Allianz and others.

After this period, if the vehicle is not found, you must provide some requested documents to the insurance company.

Only then does the 30-day period begin for the company to pay the insured the full amount of the car theft compensation.

During this 30-day period, a process is opened to transfer ownership of the insured's car to the name of the insurer.

Only after this process is completed will the insured be able to receive full compensation.

What happens when the car is stolen but found before the compensation is paid?

In the case of vehicles recovered before this transfer is completed, the process is cancelled and the payment of compensation for the car theft is suspended.

The car goes to the workshop if it needs repairs and is then returned to the insured.

In this situation, the insurance policy remains valid as normal. However, if the vehicle recovered from theft has damage that characterizes it as a total loss, then compensation must be paid to the customer and the policy will be canceled.

If the car is found after the transfer of ownership process is completed, the customer will remain entitled to receive full compensation for the vehicle, and the policy must be cancelled.

The stolen vehicle is transferred to the insurance company and, now in the company's possession, it is called a damaged vehicle.

How does the insurance inspection for stolen and recovered cars work?

When taking out insurance for your car, you need to do a simulation and this is a general rule, regardless of the case, such as whether the car has been in an accident or not.

In addition, insurance companies carry out an inspection of the vehicle before accepting or not accepting protection for the asset.

During this inspection, insurance companies analyze all the details of the vehicle, especially if it has been in an accident. In fact, for recovered vehicles, they tend to be even more careful in this analysis.

Therefore, insurance companies analyze the bodywork, engine, chassis number, accessories, seats and other details.

Therefore, the inspection of a recovered vehicle is carried out with even more attention and care. After that, all you need to do is present the DMV report to the insurance company.

However, it is important to know that the cost of insurance for a car that has been involved in an accident can be higher. Even so, it is worth paying for the protection rather than running the risk of having your vehicle stolen by thieves and losing out.

Understand better what a damaged car is

Every time insurance is activated and pays full compensation, whether due to total loss in a collision or fire, or in the event of theft or robbery.

From the moment the compensation is paid to the customer, the car becomes the property of the insurer.

In these cases, the cars are considered to be in an accident, which means that if the vehicle is found, it will be sent directly to one of the Detran vehicle auction yards, where it may or may not be recovered, and recovered vehicles will be sold at a price well below the list price.

It is important to contact your insurance company, whether it is Allianz, MAPFRE Insurance, Suhai Insurance Company, SulAmérica and others, to answer your questions.

Does a stolen vehicle lose value?

If you have been robbed or stolen and intend to sell your recovered car after this event, be aware that yes, a vehicle recovered from theft loses value.

Vehicles recovered from accidents can cost up to 30% less than their market value.

So, if you are hoping to sell your stolen vehicle, be prepared to ask for much less than it is actually worth!

Just as there are other factors that devalue a car, theft and robbery also devalue it.

In other words, if your question was how the insurance works when the stolen car is recovered, the answer is: it depends.

If it can be recovered, it should be returned to the policyholder, where the auto insurance policy will remain intact.

In this case, it is important to check how to remove the claim from the vehicle's documents. That is, in the event of a recovered claim.

However, if it is not recovered, or only after the process of transferring ownership to the insurer's name is completed, then the customer should receive compensation in full, and the policy should be cancelled.

Is repossessed car insurance more expensive?

Many people wonder whether it is easier to get insurance for repossessed cars than for auctioned cars. But it depends a lot, since insurance companies will carry out an analysis to determine the risks that they will have to assume.

Therefore, the less damaged your stolen and recovered car is, even in the case of theft or robbery, the greater the chances that the insurance company will accept to protect you.

However, there are other issues that insurers consider, many of which are the same as for auction cars. So, all of this influences the price of car insurance.

However, it is still important to know that the price of car insurance depends on the assessment of risks assumed by the company. Therefore, regardless of whether you are going to hire the insurance company MAPFRE, SulAmérica, Suhai Insurance Company or others, if it is a car that has been in an accident, the chances of the insurance being more expensive are greater.

If I have problems with the insurance company, how can I resolve them?

In the event of a covered claim, but which the car insurance company does not want to pay, you can contact Susep or your lawyer.

Regardless of the problem, for example, if the company does not want to compensate the value of the Fipe Table in the event of theft and robbery or even total loss, and this is stipulated in the contract, you have rights and it has a duty.

However, pay attention to what is stated in the contract, as each car insurance company must follow what was agreed. If in doubt, speak to your lawyer or even your insurance broker.

If you still have questions about insurance when your stolen car is recovered, speak to your insurance broker.

* Published on: 04/16/2019 and updated on 10/28/2022.

* Afrilatest is not responsible for the amounts mentioned here, as the price of insurance may vary depending on each driver's profile.