If your car is recovered, several different scenarios could unfold. Your car may be inspected and repaired or deemed a total loss and written off. Your insurer may keep the car as salvage if you’ve been issued an actual cash value settlement that transferred ownership to it.
The exact scenario that unfolds will depend on many factors, including:
- when you filed your theft claim relative to when the car was recovered
- how badly it’s damaged
- whose name the car is in
- what kind of physical-damage coverage you’ve purchased
This Ontario-focused guide draws on Ontario’s current Automobile Policy, FSRA’s optional auto-coverage guide, Équité Association’s current theft reports and Insurance Bureau of Canada’s theft-prevention guide.
What to Do as Soon as the Car Is Found
If the car is located:
- Contact your insurer or adjuster right away, even if no claim is filed, the car appears undamaged, or the settlement paperwork is underway.
- If you have GPS or another type of real-time tracking, give the location information to police. Do not go there yourself.
- Once police and your insurer clear access, take pictures of the vehicle’s exterior, interior, items inside and odometer without disturbing anything that may be evidence. Make an itemized list of missing personal property, car documents, keys and plates.
- Do not start or drive the car until police give the OK and a qualified repair facility determines it is safe to operate.
Does Car Insurance Cover Stolen Cars?
| Ontario coverage | Does it include theft? | Important distinction |
|---|---|---|
| Specified Perils | Yes, theft or attempted theft is one of the listed perils | This option does not provide Collision or Upset coverage. It is limited to the specified named perils. |
| Comprehensive | Yes | Coverage for losses other than those covered under Collision or Upset, subject to specific exclusions and policy language. |
| All Perils | Yes | Collision or Upset coverage coupled with Comprehensive coverage. Theft by certain employees and members of your household may be covered. |
| Collision or Upset alone | No | Collision insurance does not cover stolen cars. Collision coverage applies when you crash into an object or roll your car. |
| Mandatory liability and accident benefits | No physical-damage payment for the stolen car | Each covers a different aspect of car insurance; neither is the same as optional car theft insurance. |
Read More: See How Comprehensive Car Insurance Works in Ontario
What the Ontario Claim Can Include
| Claim item | How it is usually handled under the standard wording |
|---|---|
| Repair or total loss | The insurer has a choice whether it wants to repair, replace or rebuild the vehicle. However, it cannot pay more than the actual cash value less the deductible. |
| Rental, taxi or transit | Theft coverage also includes reasonable expense coverage. This coverage begins after a 72-hour waiting period following a report to either police or your insurer. The limit for reasonable expenses is $900 under the current standard OAP 1 wording. |
| Further damage protection | As the claimant, it is your responsibility to take reasonable steps to minimize any further losses. Do not perform any repairs, except those required to protect the vehicle, before a formal inspection or written consent. |
| Proof and documents | The claimant must give written notice of the claim within seven days. If the claimant was incapable of complying with this requirement, give notice as soon as reasonably possible. The insurer may require records or a statutory declaration. |
| Personal property | Check the terms of your home, condo or tenant policy for specific coverage and policy limits. Physical-damage auto insurance covers the vehicle and its equipment. Other property may be covered under home, condo or tenant insurance, if applicable. |
What Happens if a Stolen Car is Found Before an Insurance Payout?
If your stolen car is found before an insurance payout is distributed, your insurance provider will first assess the condition of the vehicle and document any damage sustained. If the loss is covered and repairable, the insurer may authorize repairs subject to the policy, deductible and claim process.
However, if the car is damaged beyond repair, your insurance company will declare it a total loss and compensate you with the fair market value of your vehicle. Depending on your specific policy, your insurance company may also cover the cash value of items left inside the vehicle and subsequently lost during the theft.
What Happens if a Stolen Car is Found After an Insurance Payout?
If your stolen car is found after an insurance payout, ownership depends on the signed settlement and transfer documents. Contact your insurer to confirm who owns the recovered vehicle. It’s important to contact your insurance provider as soon as your vehicle is recovered, ideally before they pay out the insurance claim.
Read More: Read How Car Insurance Write-Offs Work
Documents and Evidence to Keep
Save the following documents and evidence:
- police occurrence and recovery report;
- all keys;
- photos;
- vehicle purchase or lease contract;
- vehicle recovery and release documents and details from the tow yard;
- inventory of personal property;
- receipts for recently installed accessories or equipment;
- repair estimates;
- vehicle storage invoices;
- rental car or transit expense receipts; and
- offers of settlement.