Are stolen cars covered by insurance and do you lose your no claims bonus?
ONE of the yearly struggles as a car owner is choosing which car insurance to buy and with an overwhelming number of policies, this is not easy.
Even once you have chosen your policy, your car might not be covered for theft unless you have comprehensive cover on your car insurance.
The number of car thefts in the UK has fallen since 2002/03, when over 300,000 cars were reported stolen.
In 2013, car thefts reached their lowest with around 70k thefts but this number has risen again in recent years.
Last year almost 90,000 cars were reported stolen in the UK.
Around one in three drivers expect their motor insurance to pay out the purchase price of their car if it's stolen or written off, according to a study by Consumer Intelligence.
But the misconception can see Brits left very unhappy once a claim is settled because some insurance policies do not cover theft.
Be sure to check your own policy to understand exactly what you're covered for so you don't waste money.
There are a lot of policies to choose from and everything from your car's colour to your driving history could impact how much you pay.
Are stolen cars completely covered by insurance?
For the majority of drivers, insurance providers will only pay the current market price of your car at the time of a theft or accident write-off, minus any depreciation.
So even if your motor is brand new, it will have depreciated by around 20 per cent as soon as you took it out onto the road.
Any gap in the amount you paid and the amount awarded by the insurer is at your expense when it comes to purchasing a replacement - or will just mean you are a few thousand pounds out of pocket.
With depreciation so significant, a write off or theft could see you lose an incredible amount.
On average, cars with an annual 10,000 mileage lose 60 per cent of their value after three years, making the gap in purchase and market value enormous.
latest on car insurance
How can I avoid losing money if my car is stolen?
There is a policy add-on you can select that will prevent you from losing money if your motor is stolen.
Guaranteed Asset Protection (GAP) is one of the only ways to make sure your insurance cover likely to pay out the full purchase price.
In most cases, GAP cover will pay out the full purchase price of your motor if it's written off or stolen, including the cost of any finance deals.
But despite the potential to save drivers thousands of pounds, figures show that just one in eight Brits took it out when they bought their vehicle.
John Blevins, Consumer Intelligence insurance pricing expert, said: "It is bad enough to suffer a theft or a write-off but having to also deal with financial worries about getting a replacement in the aftermath adds to the pain.
"GAP insurance can be very valuable, and it is a pity that motorists are put off buying it because they don’t trust dealers to offer them good deal."
Comprehensive cover should pay out if your car is stolen but check the details of your agreement before paying up.
Will I lose my no claims discount?
A no claims discount (NCD) is a great way of reducing the cost of your car insurance.
Every year you drive without claiming, the cost of your insurance for the following year is discounted.
Unfortunately if your car is stolen and isn't returned by police, your no claims discount will suffer.
Any time you are forced to make a claim to your insurer that results in a pay-out, your NCD will be affected.
Many insurers will let you pay extra to protect your NCD, if you have a few years of no claims under your belt this might be worthwhile.
Will my insurance cover the rest of my finance deal?
Almost 80 per cent of owners believe their outstanding loan will be paid off by their insurance if they bought their car on finance, according to Consumer Intelligence.
But for most policy holders, ongoing finance deals aren't included in the final pay-out.
However, if you have GAP insurance, your provider should cover what's still owing on your finance deal.
As with all insurance claims, check with your insurer what they are willing to cover before committing to an agreement.
What are the chances of my car being recovered?
Around 917,000 cars were stolen between 2011 and 2021, but only 28% of stolen vehicles are returned to their owners.
Most of these are damaged and often unusable, so even if you do get your car back you might not be able to use it.
The car which gets stolen the most is the Ford Fiesta with 3,392 of that model being stolen in 2020 alone.
Other popular targets are Range Rovers, the Volkswagen Golfs and Ford Focus.
In 2020 there were even 101 John Deere vehicles stolen, including tractors, lawn mowers and buggies.
Some police forces are more likely to find your car that others, with Merseyside Police recovering 75 per cent of its stolen vehicles.
But it's bad news if you live in the West Midlands as police only recovered 12 per cent of reported stolen cars in the region.