How do insurance companies determine compensation for a stolen car?

My car was stolen last week. It sucks but I do have car insurance for it. How does my car insurance company figure out how much my car was worth? It was a few years old, but in pretty good condition.

Answer

If a car is stolen, usually they will figure out its depreciated value based on age, mileage, or whether there was any previous damage to the car. That is the amount you would receive, minus any possible deductible for your comprehensive coverage.

However, if you have replacement cost or new car replacement coverage on your policy, then you would get as much as you paid for the car or however much it costs to buy that car new today.

Savannah Grabek

Answered on Mar 12, 2021

Savannah Grabek is an expert in Personal Lines insurance. She has 5 years experience in the insurance industry. Savannah began her carrier working with just property insurance and is now tenured in all personal line including home, auto, motorcycle, boat and umbrella. She previously worked for GEICO and has now been working with Jerry insurance for the past year. Savannah lives in New York with her son, fiancé, and puppy Bear. In her free time she enjoys spending quality time with her family and hiking with her dog.

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