An important headache can be caused by a theft claim. It is very difficult to dispute car stereo claims. You will be required to file a report with your insurance company. If there is reasonable suspicion that your stereo was stolen, most police departments won’t come on the scene to file a report.
Even worse, many auto insurance policies will not cover theft claims for personal property. To get personal property coverage, you would need to file a claim against the renters or homeowners insurance. If you don’t have one of these polices, any vehicle that was stolen will be exempted.
You will have to pay a deductible even if you file a claim against your homeowners or renters. These policies usually have high deductibles, and insurance companies will not pay for personal items. Before you file a claim, make sure that your renter’s or homeowners policy has a low deductible.
How can you file a claim for stereo theft and get paid? You will first need to file a “walk-in” police report. This is a complicated process as the police may not be able to come out. Next, you will need to file a claim with insurance. If you do not have complete coverage for a theft case, your stereo claim will be denied. Your stereo must also be worth more than your maximum deductible. If your stereo is $1,000 in value and your deductible $250, you will be paid $750 ($1,000-250). But, if your stereo is worth $1,000 and your deductible is $250, then you will get paid $750 ($1,000 – $250).
If your system is worth $200, and your deductible stays at $250, no payment will be made
Made to order
The problem is that you will only be liable to the insurance company for the actual cash value. What is the actual cash value of your stereo system? It is the stereo’s actual cash value minus any depreciation. Soon you will find out that insurance companies heavily depreciate electronics and other systems. Sometimes they will take as high as 40% per year. This is not a fixed rule, and it varies from one insurance company to the next.
If your stereo is less than three years old, your theft claim may be worth $0. This subject has been the subject of much litigation and dispute. The insureds argue that the stereo is not worth $0 or even close to it, as it still had an important purpose. (There is intrinsic value). Most stereo theft cases are small enough for lawyers to litigate and change the insurance policy.
Documenting the equipment you used can help protect your interests. Great evidence would be receipts from purchases. If you don’t have the receipt, take photos of the owner’s manual and the number of the person who installed the stereo.
You could be able to prove ownership of your equipment.
This is something you should never do. This is what I mean. Don’t try to exaggerate your claim. This is fraud. You will lose your rights under the policy if you are caught intentionally misrepresenting the stereo’s value. You can be turned over to the police by the insurance company and placed in the “black list”. It will be very difficult to find any type of insurance. Don’t risk it.
The best way to deal with a car stereo theft claim?
1. Even if the report is not a walk-in report, get a police report
2. If you have comprehensive coverage, file a claim.
3 Collect as much information as possible about you
equipment.
4. Check to make sure that the insurance company does not charge excessive depreciation.
5. Don’t exaggerate the claim.