How Does Car Theft Affect Insurance Premiums?

How Does Car Theft Affect Insurance Premiums?

Car insurance companies calculate the cost of car insurance policies based on risk factors. Car theft affects insurance premiums if the risk of car theft is high in the area where you live then you may pay higher car insurance premiums. Car insurance companies charge lower car insurance premiums from the people who live in areas where the risk of car theft is low. Drivers who live in areas where the risk of car theft is high are more likely to file claims and these drivers are considered as high-risk drivers for the car insurance companies. According to the data gathered by the MyMoneyMyQuotes team every year more than 1 million cars get stolen in the USA.  

What kind of insurance coverage do you need to cover the damages caused due to car theft?

You need comprehensive coverage as a part of your auto insurance policy to cover the cost of the damages caused by car theft. Car insurance companies assess car theft crimes in your area before calculating the cost of car insurance policy because car theft affects the insurance premiums. 

If you have comprehensive coverage then you can file a car insurance claim with your car insurance agent to recover the losses incurred by car theft. You can file a car insurance claim by informing your car insurance agent about the car theft. You should also call the police if your car gets stolen and file a report of car theft. You should keep a copy of the car theft report. It is required at the time of filing a car insurance claim. 

After assessing the situation and calculating the cost of damages, car insurance companies compensate you to cover the loss. If you found your stolen car then you should assess the condition of the car carefully. If your car gets damaged then you can file a car insurance claim to cover the cost to fix the damages. Car insurance companies pay you to cover the losses caused due to car theft up to the coverage limit of your comprehensive coverage. 

When you file a car insurance claim to cover the damages caused by theft then it will increase your car insurance premiums. If you file more than one car insurance claim to cover the damages due to car theft then the car insurance companies can cancel your car insurance policy or your car insurance rates can increase at a significant rate. In this manner, car theft affects insurance premiums.

You are not able to file a car insurance claim if you do not have comprehensive coverage in your car insurance policy. It will be expensive for you if you do not have comprehensive coverage in your car insurance policy in case of car theft. It is a good option to carry comprehensive coverage insurance in your car insurance if your vehicle is new. If your vehicle gets old then you can skip comprehensive coverage from your insurance policy because it will just increase your car insurance cost.

Useful Insurance tips for you : What Happens If You’re Car Insurance Lapses?

Tips to protect the car from theft

You can do the following things to protect your car from getting stolen:

  1. Do not leave keys in your car

You should not leave the keys in your car if you park your car anywhere. It can increase the chances of car theft if you leave keys in your car. According to data gathered by our team most of the vehicles get stolen with keys left in them. 

  1. Install anti-theft devices in your cars

Car theft affects the insurance premiums so you install anti-theft devices in your cars. You can get anti-theft discounts if you installed anti-theft devices in your vehicles. Anti-theft devices such as tracking devices, anti-locks, alarms, etc. protect cars from theft. You can also track your theft car with the help of installing tracking devices in your cars.

  1. Do not leave expensive items or wallets in your car

You should not leave your wallet or other expensive items in your vehicle because it can increase the chances of car theft. You should keep your car clean.

  1. Park cars in safe areas

You should park your cars in safe areas to protect your car from theft.

At MyMoneyMyQuotes.com, consumers can shop and compare auto insurance quotes online for free and find the best and cheap rates for their coverage needs for an auto insurance policy.

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