If your vehicle is stolen, your first call should be to the police and your second should be to your auto insurance provider. Most comprehensive policies protect against theft, which means your insurance company will reimburse you for the missing car so you can purchase a new one. But what happens when police find your vehicle and return it to you after you bought a replacement? The knowledgeable team at Kramer-Myers & Werring-Dickerson Insurance in Batavia, which has been helping southwestern Ohio residents protect their belongings since 1969, explains how this scenario might play out.

Understanding Auto Insurance

To determine what would happen if a stolen vehicle is returned to you, you need to know how auto insurance works. In general, an insurance company settles claims for stolen vehicles by giving the policyholder a check for the current value of their car — this means you probably will not receive enough money to cover what you paid for the vehicle.

If you took out a loan to purchase your car, there is a good chance it depreciated faster than you could repay the loan, which means the check from the insurance company might be less than the balance you owe. However, filing an auto insurance claim for a stolen vehicle is the best course of action under the circumstances because cars rarely are recovered in drivable condition.

How Vehicle Recovery Affects a Claim

If your car is found in good condition after the insurance company settles your claim, you can expect them to collect it. They probably will argue the stolen vehicle belongs to them, and you must arrange to have it sent to your insurer or buy it from them. In some cases, the insurance company will determine it’s not in their best interest to collect a recovered vehicle and will surrender it to you, which means you can keep it. Even if you think this is the route the insurance company will take after assessing the state of your car, you need to report its return to them or risk being charged with fraud.

Most insurance providers are reasonable when dealing with stolen vehicle claims because they understand the stress of the situation. To ensure you buy a plan from an agency that values its policyholders, turn to Kramer-Myers & Werring-Dickerson Insurance in Batavia, OH. Visit their website for information about auto insurance and other policies, including life and home insurance. Call (513) 732-1461 to discuss your coverage needs and follow them on Google+ for more advice from the agency.