Does Insurance Protect Stolen Cars In Canada?

Over the previous year, Canada’s growing vehicle robbery problems have captured foreign concentration, and when you check the numbers, you can see the reason. With vehicles stolen every minute, there has been a 138% rise in theft claims over the past years and a 442% rise in the worth of said claims.

Though Ontario and Quebec have been the most brutal hit until now, they have also invested heavily in battling car theft. Because of this, the Insurance Bureau of Canada advises that their concentration could now adjust toward the western and Atlantic regions due to the prospective nature of vehicle thefts.

This means that if you have a car, no matter where you reside in Canada, it is time to check your auto insurance policy to ensure it covers vehicle theft. If you are unsure what to look for, this article will help you discover what protection to look for in your policy documents and provide hints that can help decrease the risk of your vehicle becoming a statistic.

Does Insurance Protect Stolen Vehicles?

Vehicle insurance protects stolen vehicles, but only if you have comprehensive protection. If you have it and your claim is endorsed, your insurance will pay you for the worth of your stolen car. In an attempted robbery that allows your vehicle to be destroyed, such as broken windows, you may as well be rewarded for repairs up to the limits stipulated in your policy for such harm.

On the contrary, without comprehensive protection, you would be entirely financially responsible for replacing your car, which could cost you a lot of money, especially if you bought it recently.

Unlike some kinds of compulsory protection, like third-party liability, comprehensive protection is an alternative. This implies that you must select and have it detailed in your policy to qualify for payment. Suppose your vehicle is rented or funded, though. In that case, you may need to include it, as your lender or renting firm has a financial interest in the vehicle and requires coverage for their investment.

What Takes Place If Your Vehicle Is Stolen And You Still Owe Money?

Suppose your stolen vehicle still has an outstanding debt, but you have a vehicle insurance policy with comprehensive protection. In that case, the insurance firm will automatically pay you for the car’s real cash value. Hence, based on your policy caps, the payout may not completely protect the remaining loan balance. If this is the case, it will be your duty to reimburse the difference.

Suppose you do not have comprehensive protection and your vehicle with funds still owing is stolen. In that case, you will be responsible for reimbursing the loan out of your pocket without any support from insurance. This can become a severe financial drawback, as you must protect the remaining loan balance on the stolen vehicle and bear the expenses of replacing it.

This is why comprehensive protection is crucial, mainly if you still owe a significant sum on your vehicle.

How To Stop Your Car From Being Stolen

Notwithstanding whether you decide to get a vehicle insurance policy that attaches comprehensive protection, there are so many things every car owner can and is required to consider to decrease the threat of their vehicle being stolen. Below is an easy checklist that should be observed to assist in deterring your vehicle from being stolen:

• Make sure the doors and windows are properly locked
• Ensure you park in well-lit, high-traffic regions whenever possible.
• Install anti-theft tools like steering wheel lock, vehicle alarm, or GPS tracking system.
• When you leave your vehicle, you often take out or hide valuable items such as bags or private belongings.
• Do not leave your keys in the ignition, even for a second.
• Contemplate including a security camera or dashcam for additional coverage and proof of theft.
• If you park in the driveway, improve security with motion-activated lights or a strong security gate.