It typically takes no more than 30 days for an insurer to pay out a client after their vehicle was stolen.
However, this applies to only the most simple and straightforward of cases, writes vehicles telematics firm Cartrack.
If the situation is more complex you can expect the payout to take much longer
Factors that can hamper the process include incomplete documentation, investigation delays, and miscommunication between yourself and your insurer.
Unpaid excess fees can also hinder the payout.
“The excess is the amount that must be paid out of pocket before the insurer covers the remaining costs of a claim,” said Cartrack.
“For example, with a R2,000 excess and a claim amounting to R15,000, the R2,000 must be paid first, which could hold up the process if you don’t have the funds readily available.”
Likewise, the cover limit on your particular contract could slow things down. If your claim exceeds this limit, you will only receive the payment up to the cover limit.
For instance, if the stolen vehicle is valued at R200,000 but the policy has a cover limit of R150,000, only the latter will be paid out in a total loss situation.
“This discrepancy can lead to disputes, causing further delays as the insurer assesses what portion of the claim is covered,” said Cartrack
It is furthermore important to note that during busy periods such as after a natural disaster, insurance companies will usually have a backlog which affects their ability to timely respond to claims.
“In this case, claims can take up to several weeks or even months before they are resolved and paid out,” said Cartrack.
How much you get
In the event of a total loss, such as when your car is stolen, you likely won’t receive the insured value of the asset into your bank account.
“If your car is not recovered after being stolen, your insurer will pay you the actual cash value (AVC) of the car,” said Cartrack.
The AVC is the market value of your vehicle, which considers its age and condition.
However, the insurer will subtract your policy’s excess from this amount, hence, you will receive the AVC minus the excess as your final payout.
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