There are many advantages of reporting a stolen vehicle to your insurance company. Apart from the obvious advantage of receiving coverage and compensation there are other benefits, too. Not reporting the theft can entail your having to continue paying car insurance premium among other drawbacks.
Missing Out on Coverage
One of the biggest drawbacks that can happen when you fail to report a stolen vehicle is the lack of coverage. Your vehicle maybe covered for theft if you have opted for a comprehensive insurance policy. However if you never report the theft to the insurance provider the company would never know and hence would not be able to begin its investigative process into the matter. Therefore even if you were covered under vehicle theft you would not be able to receive any compensation or replacement coverage in case you have this kind of coverage option in your policy. This means that you automatically end up bearing all the financial losses without any hope of compensation from your insurance company. Some car insurance policies even allow for sufficient compensation to the vehicle owner to be able to purchase a new car if the stolen vehicle cannot be recovered within reasonable time.
Recovered Car No Options
If you were to report the theft to your car insurance company you would have the biggest advantage of monetary compensation to help you get a new car or at least a rental if your policy permits this option. If the vehicle has been recovered within reasonable time but the car cannot be used any more your insurance company can find ways to fund you for a rental car to enable you to get on track within the shortest possible time. Not reporting the theft means having to pay your car insurance premium even though you are not using the vehicle.
Coverage for Items Stolen from Vehicle
In several instances, car insurance policies can offer coverage for specific items that may have got stolen from the vehicle. Typically, items that have been permanently attached on the vehicle are covered by the policy. The question of whether you will receive coverage for such items would also depend on the particular type of car insurance you have. Certain car insurance policies provide coverage for theft and in such cases you will receive compensation for stolen items from the vehicle as well. However if you fail to report the vehicle as stolen to your insurance company you will miss out on compensation and continue to pay your car insurance premium as well. This can result in huge financial losses and inability to recover your car on time further creating a dent in your finances.