Finding out that your car has been stolen can be devastating. Although it won’t change the situation, knowing you can file an insurance claim might offer relief, allowing you to recover financially and start moving forward.
Understanding the claims process is important so you don’t get frustrated if your payment takes longer than expected.
In this blog, we’ll break down the timeline of insurance payouts, the steps involved, and what factors can influence the duration of the process. We will also discuss how to maximise insurance benefits with Cartrack’s tracking solutions.
It’s important to understand your insurance coverage, especially how compensation works if your car is not found after being stolen. Knowing how your policy works can help you manage the claims process, ensuring you get the correct amount of money.
If your car is not recovered after being stolen, your insurer will pay you the actual cash value (AVC) of the car. The AVC is the market value of your vehicle, which considers its age and condition. However, they will subtract your policy’s excess from this amount. So, you will receive the AVC minus the excess as your final payout.
The timeline of your insurance claim depends on how simple or complex it is. If the claim is a simple, straightforward one, then it can take up to a month (30 days) to be processed and paid. In addition, some insurance companies have apps that clients use to submit the necessary information and get updates on the progress of the claim. Having this app helps accelerate the claims process for many claimants.
It is important to note, that during busy periods such as after a natural disaster, insurance companies will usually have a backlog, which affects their timely response to claims. In this case, claims can take up to several weeks or even months before they are resolved and paid out.
Let’s look at factors that may delay your payout when your vehicle is stolen.
Many factors can delay the payout of an insurance claim, such as incomplete documentation, investigation delays, or miscommunication between the insured and insurer.
Let’s discuss some of these factors:
Incomplete Documentation
It is important to produce the relevant documentation for both the police and the insurer. If the insurance company is missing these documents, then you can expect the insurance process to take longer.
Investigation Delays
Remember that insurance companies also conduct their own investigations. The more complicated your situation is, the more delays there’ll be in your claims being approved. If the insurer suspects that a claim is suspicious the investigation will take longer.
Communication Delays
Constant follow-ups with the insurer are essential. Reading emails and SMSs or answering phone calls at all times is important, as being unreachable could delay the payout process. An example of this is if the agent assigned to your claim calls or sends an email requesting banking details for the payment, failing to provide the correct information in time will result in a delay in the payout.
Insurance Terms and Conditions
Unpaid excess payments can delay the payout duration of an insurance claim. The excess is the amount that must be paid out of pocket before the insurer covers the remaining costs of a claim. For example, with an R2000 excess and a claim amounting to R15000, the R2000 must be paid first, which could hold up the process if you don’t have the funds readily available.
Delays can also be affected by the cover limit. This is the maximum amount your insurer will pay for a claim. If your claim exceeds this limit, you will only receive the payment up to the cover limit. For instance, if the stolen vehicle is valued at R200 000 but the policy has a cover limit of R150 000, only the latter will be paid out in a total loss situation. This discrepancy can lead to disputes, causing further delays as the insurer assesses what portion of the claim is covered.
This is why it is always important to read the terms and conditions of any contractual agreement. Understanding these factors is crucial for managing expectations and ensuring smoother claims experience.
Hijacking is one of the most concerning crimes in South Africa with approximately 65 vehicles stolen daily. This is why it’s helpful to know what steps to take right away if you discover your vehicle is missing.
These are the steps to follow when your vehicle has been stolen:
Contact your Tracking Company
Most tracking companies offer a Stolen Vehicle Recovery (SVR) service, if you have such a provider, this would be the ideal time to let them know. The first few minutes are crucial in SVR since criminals will first try to locate the tracking device and attempt to disable it, minimising the chances of vehicle recovery. Informing your service provider as soon as possible will help alleviate the chances of recovery.
Report the theft to the police
The next step is to go to the nearest police station to report the theft. This will help with the insurance claim. The authorities will flag the car registration number as stolen so they can look out for it at roadblocks and border crossings.
You need to have important information and documents with you, namely:
The police will also ask other questions such as the last time you saw the car. They’ll also ask you to disclose any markings, dents and any other modifications on the vehicle. This will help them identify the car easily on the road.
Get a case number
After filing a police report, you will receive the case number. Ask for a certified copy of the report, and ensure every detail is correct. Keep both the copy of the police report and case number safe, as this will be provided to your insurer.
Remember to note the name and rank of the police officer handling this case.
Notify Your Insurance Company
After visiting the police station, contact your insurer. The insurance company will need the same or similar details to those provided to the police. An assistant will help with the claims process.
Note that the type of insurance policy you have—whether Third Party Fire or Comprehensive Cover—will influence the claims process. For example, in a Comprehensive Cover, the insurer may require additional information related to any damages if your car is recovered. However, with a Third-Party Fire and Theft Policy, the focus will primarily be on the theft itself, as this policy does not cover damages from accidents.
If your stolen vehicle is recovered after receiving a payout from your insurer, the car belongs to the insurance company.
The insurance company therefore has a right to do as they wish with the vehicle since they have full ownership. However, all items found in the vehicle are still yours and will be returned to you.
Depending on the insurance company’s terms and conditions, you may be required to pay back the money since you were already compensated. You may also be able to buy back the car from them or they may choose to sell the recovered car as salvage.
If the car is recovered during the claims process, the insurer needs to be informed immediately. This allows the insurance company to assess the vehicle for any damage, so they can pay out the repair costs instead if they are needed. Remember, this is only applicable when you have a comprehensive cover.
Additionally, if the vehicle is recovered but declared a total loss, meaning the vehicle’s repairs cost more than it is worth—the insurance company will pay the actual car value like they would if your vehicle was not recovered.
Having a reputable tracking company along with a trustworthy insurance company, can result in seamless claims and payouts. Fortunately, Cartrack can offer you so much more if your vehicle is stolen.
Let’s explore some of the solutions:
Additionally, if you are struggling to choose an insurance that caters for your needs and budget, we can assist you with that. Cartrack Insurance Agency is an independent financial brokerage. We provide various insurance quotes from several trusted insurers that we have partnered with.
Taking into account all these services that we offer, you can have peace of mind that should the unexpected happen, you will have the necessary support to get through this traumatic experience.
Having a reliable tracking system can help speed up the recovery process, as insurance payouts can sometimes be delayed due to investigations surrounding the stolen vehicle. With Cartrack’s high recovery rate the chances of quickly finding a stolen vehicle increase but in the case that we are unable to recover your vehicle we are willing to supplement your insurance payout with a R150000 payout, Ts&Cs apply.
Don’t wait for the unexpected—contact Cartrack today for a free quote and take the first step toward securing your vehicle and ensuring peace of mind.
Q: Is it compulsory to have both a tracking device and insurance?
A: It isn’t compulsory to have insurance if you have a tracking device. However, given the high hijacking and vehicle theft numbers in South Africa, it is beneficial to have both.
Q: Why do I need a tracking device for my vehicle insurance?
A: Many insurance companies require a tracking device to be installed in a vehicle as it increases the chances of recovery if the car is stolen. It also allows insurers to assess risk more accurately, which can lead to lower premiums, saving you money in the long run.
Q: How does telematics data benefit my insurance claims?
A: Telematics data provided insurers with detailed information about driving behaviour and vehicle performance. This data can be used to access accidents accurately, leading to quicker and more efficient claims processing.
Q: Does having a tracking device guarantee that my stolen vehicle will be recovered?
A: While a tracking device increases the likelihood that a stolen vehicle is recovered, it doesn’t guarantee it. The effectiveness depends on various factors, including the time taken to notify the tracking company, and the response time of law enforcement and recovery teams.
Discover how long it usually takes for insurance companies to pay out on stolen vehicle claims. Explore the factors that affect payout times and tips for a smoother claims process.
