It’s difficult to say why your claim was denied because it’s very fact-specific. However, there are some common reasons stolen car insurance claims are denied, including the following:
All insurance policies have limits on how much they will pay out if you need to file a claim for an accident or a stolen vehicle. If your claim is higher than the coverage limit you purchased, then your claim could be partially denied. The insurance company might agree to pay an amount up to but not greater than the policy limit, but then you could be stuck with the rest of the balance.
Another possible reason that your claim might be denied is based on your policy coverage. All auto insurance policies are different, which is why it’s so important to read through your policy, including the fine print, before you decide which one is the right policy for you. If you only have collision or personal liability, and you didn’t choose a policy that included coverage for a stolen car, then you could be out of luck if you end up in that unfortunate situation.
Arguably, the most important thing you can do when it comes to your car insurance is to make sure you always pay your premiums on time. If you fail to pay on time, you could be penalized and face increased premiums. Even worse, if you’re involved in an accident but you let your policy lapse by not paying your premiums, you won’t be covered for your loss. The same is true with a claim for a stolen car. It doesn’t matter if you previously had insurance for a stolen vehicle, if you haven’t been paying your premiums and let the policy lapse, you could find yourself on the hook for the entire cost of your stolen car, with no help whatsoever from your insurance company.
- Misleading Information/Failure to Disclose
It's vital that you keep all of your information up to date with your insurance company. If they believe you lied about something—such as your address or other personal information that could affect the price of your premiums or eligibility—your insurance company could leave you without coverage if they discover this. Even if you’ve been paying your premiums and you had theft insurance, you could end up out of luck if they find out you lied or didn’t disclose important information.