If you live in a neighborhood with a high crime rate, it’s normal to worry about someone stealing your car. That is why you wonder if your car insurance covers theft and what you should do if it happens to you. Let’s check out this detailed guide on the specific insurance against car theft and how to activate it.
Does Every Car Insurance Cover Theft?
The answer is, no – not every car insurance in Malaysia covers theft. Ensuring your car against theft isn’t mandatory by the law. However, you can still pick to ensure your vehicle against someone stealing it.
Malaysian insurance agencies offer two different policies that include theft:
- TPFT – it is short for theft, fire, and third-party insurance. It is a medium-level policy that includes mandatory third-party coverage plus protection against theft and fire.
- Comprehensive – this is the most advanced insurance type to get, and also the priciest. Apart from theft and fire protection, comprehensive insurance also covers first-party claims.
Car insurance against theft is a smart idea to ensure peace of mind. It can be wise to get it if you live in an area with crime problems or driving a luxury car that costs a fortune. The critical thing to note is that you shouldn’t participate in the theft in any way. Apart from your car getting stolen, it is crucial that your negligence didn’t lead to it. Here is a negligence example – did you leave your car in a hotel and give the valet keys? The insurance company will consider that negligence and can refuse to pay compensation. You can encounter the same problem with a car wash service, and even if you give a key to a friend.
How To Make A Car Theft Insurance Claim
The first thing to ensure is that someone stole your vehicle. You don’t want to report a theft only to find out your son took the car for a drive. Make sure to confirm your suspicions about someone stealing the vehicle. Your initial step is to file a police report as soon as possible. Once you do that, it’s time to contact the insurance agency and file a theft claim. Now, it’s critical to arm yourself with patience. The police will investigate the issue, but that could take months whereas the insurance company needs to wait for the investigation to pay the compensation.
What Happens Once The Police Investigation Is Over?
The first thing that could happen is that the police find your vehicle. If that happens, they will return the car to you as soon as they confirm ownership. As for the damages to the car, it will depend on whether you have a first-party claim. If you are eligible for filing an own damage claim, you can submit one to receive damage compensation. However, please note you won’t be able to use your no-claim discount (NCD) after that. An alternative scenario is that the police don’t find your car. If that happens, the insurance company will pay out the agreed or market value. Check out your insurance contract to see if you agreed to a particular compensation if theft occurs. If that’s not the case, the company will determine the sum based on the current vehicle’s market value. It’s possible to appeal and try to increase the sum, but make sure to consult a legal professional before doing that.