How A Car Theft Claim Affects Auto Insurance Rates
After filing a car theft claim, most insureds can expect to see an increase in their auto insurance rates as filing a claim usually has an impact on premiums. In some cases, filing an auto theft claim may not have a significant impact at all. Insurance companies take a variety of factors into consideration when considering whether an insured's premiums should be increased after an auto theft claim has been filed.
One factor that car insurance companies evaluate once a car theft claim has been filed is the likelihood that an insured's vehicle will be stolen once again in the future. If there is an increased probability that the car will be stolen in the future, insurance rates may be increased significantly. In addition, insurance companies also consider the make and model of the insured's new replacement vehicle and where the vehicle will be garaged at night and during the day.
Insureds can expect to see an increase even in cases where the vehicle has been stolen and recovered. Although insurance rates may not be as severely affected in cases where a stolen vehicle is recovered, there is still that chance the insured's auto insurance rates will be impacted after filing an auto theft claim. This is especially true if the stolen vehicle sustained a significant amount of damage. Once an insurance company has to pay a claim for damage, insureds can almost always expect to experience an increase in their premiums. In most cases, even when a stolen vehicle has been recovered, auto insurance rates will be affected because an insured has filed a claim for auto theft.
After filing a car theft claim most insurance companies always review the police report to determine where the vehicle was stolen. If the vehicle was stolen in a high risk zone and the zone happens to be where the insured resides or works, the insured can expect to experience an increase in their auto insurance rates. Insureds can expect an increase because there is an increased risk that the insured's vehicle will be stolen once again in the future. Clearly, filing an auto theft claim will have an impact on car insurance rates one way or another.
How much of an impact an auto theft claim will have on auto insurance rates depends on many factors, including but not limited to where the vehicle was stolen and what type of replacement vehicle the insured has purchased. Most insurance companies evaluate the entire picture when determining whether to increase auto insurance rates. In most cases, once a claim for auto theft has been filed, insureds can expect to see an increase in their auto premiums.