How does Total Loss insurance work in case of theft?
The term Total Loss in vehicle insurance refers to the situation where the car was so damaged that its repair exceeded the established commercial value, the insurer is responsible for compensating the driver providing that value, so that you can acquire a new one instead of repairing it.
Coverage applies to crashes and other types of accidents
Many know that this coverage applies to crashes and other types of accidents, but it is also a coverage that is valid in case of theft. Although it does not necessarily work the same way. If your vehicle is taken by friends of others and had a Total Loss coverage, you can receive the commercial value after the process is completed.
So how does the total loss work in case of car theft? Although it may sound complicated, it is a process that does not involve obstacles for the insured.
Your insurer will initiate an investigation based on the documents presented
The first thing to do is make the complaint to the police. After that, you must submit the necessary papers for the insurance claim.
Your insurer will initiate an investigation based on the documents presented. It is mandatory that a period of 30 days is fulfilled in which everything possible must be done to recover the car. If the days pass and the vehicle is not found, the insurer will proceed to pay the amount established in the contract.
One point to keep in mind is that before paying you
The insurer will deduct the outstanding insurance fees. For example, if you took out insurance in January and your car was stolen in June, before paying the insurance company, you will deduct the remaining fees, since this type of coverage is used only once.
In addition, do not forget that when hiring it you can also access a range of benefits, just before making any deal, it is advisable to compare the different alternatives using web comparators such as Good finance.