In order to find the right auto theft insurance policy for your needs, you must first assess a few other details and circumstances. There are certain things you should think of before deciding on the sort of auto theft policy you require or whether you actually need one at all. This may sound unrealistic if you are worried about having your car stolen, but think about the following considerations first.
Tip 1 – Low Value
Assess the value of your car. How old is it and what is the book value? Check the Kelley Blue Book for the actual cash value of your car. Let's say you paid $400 for the car and it is around 10 years old. Is it worth paying an insurance policy that could work out to be 10 times the value of your car? Remember you are going to be paying in excess of $50 a month to insure a car worth only $400. After just ten months, you will have spent more protecting it than it is actually worth. You would be better off opening a savings account and putting that same amount of money away every month. If the car does get stolen, you can withdraw the money and buy a new one.
Tip 2 - Higher Value
Your vehicle might be worth in excess of $15,000, in which case you may feel it necessary to protect it in the event of any subsequent theft. Having a high value car warrants having an auto theft policy in place.
Tip 3 – Lease/Hire Purchase
If you lease a vehicle, it is always good idea to have an auto theft policy. No one likes the idea of having to pay monthly payments on car that they no longer have, so think about GAP and car theft insurance before leasing or purchasing a car using monthly payments.
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