# Should I tell my auto insurance company that my car was stolen? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [April 12, 2005, 5:23pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995 "2005-04-12T17:23:51Z")\ **Posts on this page:** 17\ **Page:** 1
**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\ **Post date:** [April 12, 2005, 5:23pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/1 "2005-04-12T17:23:51Z")
My 1992 Honda Accord with 210K miles was stolen yesterday from the train station parking lot. The police said that the thieve(s) would probably strip it for parts. Should I tell the insurance company? The answer might seem obvious, but… It was very old and had no value. I only had liability insurance on it so there’s no chance of getting any money. I need to replace the car with another one. If the insurance company knew that it was stolen, they probably will jack up my premiums for the next car. I basically have nothing to gain by telling them. I’d probably just call them and tell them that I got rid of it and to cancel the insurance. My only problem is if they somehow found out that it was stolen. Do they have any way of knowing this? ---
**Author:** ![Phatlewt](https://avatars.discourse-cdn.com/v4/letter/p/a698b9/32.png) [@Phatlewt](https://boards.straightdope.com/u/Phatlewt)\ **Post date:** [April 12, 2005, 6:35pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/2 "2005-04-12T18:35:28Z")
If it’s not covered by them for theft, I don’t think it’s any of their business. ---
**Author:** ![gotpasswords](https://avatars.discourse-cdn.com/v4/letter/g/c57346/32.png) [@gotpasswords](https://boards.straightdope.com/u/gotpasswords)\ **Post date:** [April 12, 2005, 6:41pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/3 "2005-04-12T18:41:09Z")
Yes, you should tell them. What happens to you if the thieves have a hit and run accident with your car? Liability comes to you and will be hard to prove otherwise. And they will find out sooner or later - the VIN will appear in a national database called CLUE once the police report works its way through. And then, you’ll get a call from the insurance co. wondering why you didn’t tell them two months ago that your car was stolen. Also, if you get another car and you get a multi-car discount because the stolen car is still on the policy? You just stepped over a line called insurance fraud. ---
**Author:** ![Inigo\_Montoya](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/inigo_montoya/32/124_2.png) [@Inigo\_Montoya](https://boards.straightdope.com/u/Inigo_Montoya)\ **Post date:** [April 12, 2005, 6:49pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/4 "2005-04-12T18:49:59Z")
Theft is covered under Comprehensive. Comp claims are typically not surchargable and so don’t affect your premium. Make sure you file a police report ASAP if not sooner. This is your paper trail demonstrating when the car ceased to be yours. This will be important if your car becomes involved in mischief. If you’re geting a multi car discount from your insurer, yeah, tell them the car is gone and either stop the discount or replace the car. The F-word is a bad one to get associated with, but most companies give you more than plenty of time to let them know the story before they go after you. Just act promptly and reasonably, you’ll be fine. You may need to contact your DMV to let them know the car is stolen so they can ‘kill’ your VIN. What state do you live in now, and what state issued the title to your car? I can look up this info for you. ---
**Author:** ![Honey](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/honey/32/5074_2.png) [@Honey](https://boards.straightdope.com/u/Honey)\ **Post date:** [April 12, 2005, 6:52pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/5 "2005-04-12T18:52:21Z")
Are you planning to cancel the insurance entirely? If you are planning on getting a new car within a short amount of time, I’d keep it. It’s likely that the rates have increased since the inception of your current policy. I’d report it to the theft to the insurance company and the “lost” plates DMV, since the plates were stolen as well (I’m assuming). If you cancel the insurance and the plates aren’t turned in, you’d likely be charged a civil penalty. ---
**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\ **Post date:** [April 13, 2005, 3:47am UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/6 "2005-04-13T03:47:40Z")
Thanks for the good advice. The police filled out a report although I didn’t get a copy. I don’t know what a multi-car discount is. If I’m paying insurance on 2 cars, it’s still more expensive than it would be on 1 car without a discount. Also, I live in New Jersey. ---
**Author:** ![Inigo\_Montoya](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/inigo_montoya/32/124_2.png) [@Inigo\_Montoya](https://boards.straightdope.com/u/Inigo_Montoya)\ **Post date:** [April 13, 2005, 12:57pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/7 "2005-04-13T12:57:38Z")
Oh well, if you live in New Jersey the best thing you can do from a car insurance standpoint is move out of New Jersey or sell your other car and get a good bike. 🙂 > [@](#): > > N.J. Stat. § 39:10-32 (2001) > > § 39:10-32. Vehicle reported stolen or damaged; surrender of certificate of ownership; issuance of salvage certificate of title > > If a motor vehicle has either been reported as being stolen or suffered sufficient damage to render it economically impractical to repair, the person in possession of the certificate of ownership for the vehicle shall surrender the certificate of ownership to the director along with a statement setting forth how the person acquired the certificate of ownership. > > The director, after determining ownership, shall issue a salvage certificate of title to a person who surrenders a certificate of ownership pursuant to subsection a. of this section. > > **"Director"** means the Director of Motor Vehicles, his deputy or duly authorized agent. and > [@](#): > > § 13:21-22.4 Issuance of salvage certificates of title; fee > > (a)Whenever a motor vehicle is reported as being stolen or is damaged to such an extent that it is economically impractical to repair such motor vehicle, the owner, insurer or person in possession of the certificate of ownership shall, within 10 working days after the motor vehicle was reported as stolen or damaged, or within 10 working days after settling a total loss insurance claim, surrender the certificate of ownership for such motor vehicle to the Division. > > (d)A fee, set forth in N.J.S.A. 39:10-11, shall be charged for the issuance of a salvage certificate of title. Looks like you got smething to do this week. This is just the statute language. I sugest calling the DMV to find out if they really need you to get a salvage title for the car. And if you DO need to get a salvage title, what will you have to do to get a clear title if the car is recovered and is in good enough condition that you can still drive it. ---
**Author:** ![Otto](https://avatars.discourse-cdn.com/v4/letter/o/bbe5ce/32.png) [@Otto](https://boards.straightdope.com/u/Otto)\ **Post date:** [April 13, 2005, 2:10pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/8 "2005-04-13T14:10:55Z")
> [@Jackknifed Juggernaut](#): > > I don’t know what a multi-car discount is. If I’m paying insurance on 2 cars, it’s still more expensive than it would be on 1 car without a discount. But it’s probably less expensive than it would be to insure the same two cars separately. Many (most? all?) insurance companies give discounts if you have multiple policies with them (two autos, auto and home, home and business, etc.). It’s an incentive for you to keep your business with them and obviously a way for the company to generate additional revenue. ---
**Author:** ![Draelin](https://avatars.discourse-cdn.com/v4/letter/d/ce73a5/32.png) [@Draelin](https://boards.straightdope.com/u/Draelin)\ **Post date:** [April 13, 2005, 2:26pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/9 "2005-04-13T14:26:51Z")
> [@Inigo Montoya](#): > > I sugest calling the DMV to find out if they really need you to get a salvage title for the car. I would like to offer my sincerest condolences to _anyone_ who has to call the NJDMV for _anything_. And, sorry about your car. ☹ ---
**Author:** ![FordPrefect](https://avatars.discourse-cdn.com/v4/letter/f/e99b99/32.png) [@FordPrefect](https://boards.straightdope.com/u/FordPrefect)\ **Post date:** [April 13, 2005, 2:51pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/10 "2005-04-13T14:51:08Z")
> [@Phatlewt](#): > > If it’s not covered by them for theft, I don’t think it’s any of their business. Even if it is covered, as long as you are not going to make a claim it shouldn’t matter either. I have fire insurance on my house, if I decide to burn it down today, I won’t be in any trouble (assuming I haven’t left my bound up mortal enemy inside 😉 ) unless I file a claim. ---
**Author:** ![Inigo\_Montoya](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/inigo_montoya/32/124_2.png) [@Inigo\_Montoya](https://boards.straightdope.com/u/Inigo_Montoya)\ **Post date:** [April 13, 2005, 3:12pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/11 "2005-04-13T15:12:58Z")
As an aside, do NOT delay with this title business. Odds are your car has been stripped and is not something you will enjoy seeing when the police call you to come and claim your chunk of metal. If not, you will at least make it’s disposal more difficult as the VIN will reflect a stolen vehicle, and much penis will ensue for the person attempting to retitle the vehicle. The sooner you kill your VIN, the better the odds the thief will be caught (by better odds I mean from zero to maybe 3%). ---
**Author:** ![Jimson\_Jim](https://avatars.discourse-cdn.com/v4/letter/j/838e76/32.png) [@Jimson\_Jim](https://boards.straightdope.com/u/Jimson_Jim)\ **Post date:** [April 13, 2005, 4:47pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/12 "2005-04-13T16:47:19Z")
You’ll need to report this to your insurance carrier. After all you’re paying or you’ve paid a premium for the liability coverage. If you paid your policy up front and cancel early you will be eligible for a pro-rata rebate of premiums paid. You can apply this to new coverage for a new car. If you pay in installments you will owe up to the time the car was stolen. The coverage for the new car will be based on that car and your driving record. Your rates will change no matter what. Different cars have different ‘factors’ used to determine premium. In fact they will most certainly go up because you will most likely have a new if not newer car that you will want comprehensive and collision coverage on. ---
**Author:** ![Honey](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/honey/32/5074_2.png) [@Honey](https://boards.straightdope.com/u/Honey)\ **Post date:** [April 13, 2005, 5:20pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/13 "2005-04-13T17:20:46Z")
> [@FordPrefect](#): > > Even if it is covered, as long as you are not going to make a claim it shouldn’t matter either. I have fire insurance on my house, if I decide to burn it down today, **I won’t be in any trouble** (assuming I haven’t left my bound up mortal enemy inside 😉 ) unless I file a claim. Bolding mine. Unless a firefighter responding to the blaze is killed or injured. I then think you’d be in a world of shit. ---
**Author:** ![Jackknifed\_Juggernaut](https://avatars.discourse-cdn.com/v4/letter/j/9de053/32.png) [@Jackknifed\_Juggernaut](https://boards.straightdope.com/u/Jackknifed_Juggernaut)\ **Post date:** [April 13, 2005, 7:50pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/14 "2005-04-13T19:50:41Z")
Thanks for the advice. I’ll give my insurance company a call. ---
**Author:** ![FordPrefect](https://avatars.discourse-cdn.com/v4/letter/f/e99b99/32.png) [@FordPrefect](https://boards.straightdope.com/u/FordPrefect)\ **Post date:** [April 13, 2005, 8:14pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/15 "2005-04-13T20:14:04Z")
> [@Honey](#): > > Bolding mine. Unless a firefighter responding to the blaze is killed or injured. I then think you’d be in a world of shit. I should have been more specific. I live in the country, if I burn my house down there is no compelling reason for the firemen to fight the fire if I don’t call them. So, in my scenerio no firefighters get hurt. Plus, my point was in regards to fire insurance not overall danger to others. ---
**Author:** ![Honey](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/honey/32/5074_2.png) [@Honey](https://boards.straightdope.com/u/Honey)\ **Post date:** [April 14, 2005, 1:14pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/16 "2005-04-14T13:14:38Z")
> [@FordPrefect](#): > > I should have been more specific. > I live in the country, if I burn my house down there is no compelling reason for the firemen to fight the fire if I don’t call them. So, in my scenerio no firefighters get hurt. Plus, my point was in regards to fire insurance not overall danger to others. I actually knew what you meant. Just didn’t want the nutjobs getting any ideas. 😉 ---
**Author:** ![FordPrefect](https://avatars.discourse-cdn.com/v4/letter/f/e99b99/32.png) [@FordPrefect](https://boards.straightdope.com/u/FordPrefect)\ **Post date:** [April 14, 2005, 2:34pm UTC](https://boards.straightdope.com/t/should-i-tell-my-auto-insurance-company-that-my-car-was-stolen/298995/17 "2005-04-14T14:34:18Z")
> [@Honey](#): > > I actually knew what you meant. Just didn’t want the nutjobs getting any ideas. 😉 Got it! 🙂