A stolen vehicle needs to be reported immediately to both the car insurance company as well as the police. The theft incident gets noted on the title record of your vehicle so that whoever has stolen the vehicle cannot sell or apply for title on the stolen vehicle. In most cases, the car insurance premium would not escalate once you have filed a claim. However, in certain instances the rates could go up.
Once your vehicle has been stolen it is crucial that you report the incident to the police. The police enter this information to the state and national computer records on auto theft. It is also important to report regarding the stolen plates on your vehicle. Make sure the police complete MV-78B form also known as Report of Lost or Stolen Motor Vehicle Items for the stolen vehicle plates. This form will be available to you only from the police department and not DMV. Make sure to have a copy of the form and report for your personal records. Take along the form in original to the local DMV office in order to surrender the registration.
In case your vehicle does not get recovered, you would need to hand over ownership of the vehicle to the insurance provider by using the title certificate. In case you no longer have the certificate you would need to make an application for duplicate title. This kind of title gets issued when the stolen vehicle is marked and duplicate title will be only valid during insurance transfer. In case the vehicle gets recovered prior to title transfer you need to ensure the police cancel the report for stolen car and subsequently send in your title to Title Bureau along with a letter mentioning the fact that your vehicle has been recovered after which DMV would issue you the car title. In most instances, car insurance premium will not go up if the insurance company has a policy of forgiveness for first accidents.
In case the vehicle has been stolen prior to being able to register the vehicle and apply for a title, you need to make a title application on your name to ensure ownership transfer to the insurance provider. Make sure to get a letter from your insurance provider on the company letterhead with the statement that ownership proof is needed for the purpose of insurance transfer. Make sure to send in this letter along with the Title Only MV-82TON form. The DMV issues a form MV-907A on your name which represents ownership transfer to the insurance provider.
Car insurance premium rates tend to escalate post theft, especially if this is the second or third time the vehicle has been stolen.