Insurance For Cars And Motorcycles In Case Of Theft

- by Sarah Connelly
Protecting Your Property And Savings From Thieves – Chapter 26

Do you know the basics of insurance for cars and motorbikes in the case of theft? If your car gets stolen, how can you replace it – will you need the help of same day loans? Find out all you need to know here with this easy Cashfloat guide.

Learn about insurance for cars - Cashfloat

Car Insurance Types

After the purchase of a house, a car or a motorcycle will probably be the most expensive possession you will ever buy. How much is your car or motorcycle insured for in case of theft? Would you get a reasonable price for it? By law, all vehicles must have at least Third Party insurance. However, this type of insurance does not cover you if someone steals your vehicle. It will also not cover you if it’s damaged when a thief steals personal possessions from a car.

For this reason, you should think about taking out a Third Party, Fire and Theft policy or a Comprehensive policy. You should check with your insurer as you might not be able to get Comprehensive cover. This may be if you do not have a no claims bonus or your postcode shows that you live in an area where there is high-risk of crime.

This article aims to examine the topic of vehicle insurance as regards theft.
  • What the different types of insurance are
  • How companies set premiums and how you can reduce them
  • No claims bonus and which conditions to check on your policy
  • Whether you need GAP insurance
  • How to make an insurance claim

Car Insurance Quotes – How they Work

Insurance companies look at a number of factors before setting your insurance premiums, and these factors balance how likely you are to have an accident and/or have your vehicle stolen.

Vehicle insurance policies usually run for a year. Although your company might send you a notice of renewal, it is your responsibility to make sure your cover is kept up to date.

Whether it is insurance for cars or motorcycles, they will consider the vehicle’s following features: Make, model and manufacturer, its engine size, how often/when you use it, its age, when you bought it and for how much. As well, they will need to know the postcode and information about the registered owner. This information would includer age, points on licence or previous claims.

Learn about insurance for cars - Cashfloat

Reductions On Vehicle Insurance

Certain factors could mean reductions in the size of your premiums. Most of these concern the security of your car or motorcycle. If you keep it in a locked garage or even on your driveway, you will pay less than if you park by the side of the road.

The other key consideration is the security devices which the vehicle has and which could deter the would-be thief. For motorcycle security, this could be mechanical devices such as disc locks, padlocks and ground anchors. For cars it could be Class 3 devices such as steering wheel locks. Any such mechanical immobilisers entitle you to a 2.5% reduction in your premiums.

Cars manufactured after 1998 have an immobiliser installed as standard. This prevents someone from hot-wiring the car as they would need the right key/fob. Later models might have had security devices added later. You should always check your car since your premiums could reduce by as much as 5%.

Learn about insurance for cars - Cashfloat

Nowadays, there are also a wide variety of alarms and tracking devices which aid in the recovery of a stolen vehicle. These will also lead to a reduction in your premiums of at least 10% but only on two conditions:

  1. The first is if they have passed the rigorous testing of a body like Thatcham.
  2. The second is that you always engage any security devices when leaving the vehicle. Failure to do so could mean that your claim is declared invalid.

No Claims Discount for Vehicles

Reductions in your vehicle insurance could go down as much as 30% if you do not make a claim against the company in the first year. After 5 years of no claims, it might be as much as 65%.

Conditions To Check On Your Vehicle Insurance Policy

Like any insurance for cars, you should always check the amount of your excess, which is the amount of money that you are expected to pay towards any claim. You may need to take a quick loan to cover you until payday, but it could be worth it.

Seeing as many incidents are opportunistic thieves stealing belongings from cars, you should check if your insurance will cover you for the theft of personal possessions from the car. In most policies, this is only valid for items that are kept locked in the boot and not things that are clearly visible through the window. Check the total value as you might only be insured for as little as £200. Alternatively, you might be able to claim on your home contents insurance. Of course, you cannot claim on both policies. Your insurance would not cover you for the loss of money and/or credit cards from the car.

Finally, you should check to see if you are entitled to a replacement vehicle while you handle your claim, so you are not left without a car. This can help you ensure that you aren’t left frantically searching for for online loans with flexible repayment terms to cover an expensive car rental. You might be able to add it to your policy if it is not standard. However, you should know it is only available for a limited time period (usually 2-28 days).

Do You Need GAP Insurance for Cars or Motorcycles?

Vehicle depreciation means that a car or motorcycle loses its value as soon as it leaves the showroom. The rate of depreciation is around 60% in the first 3 years. You should only consider GAP insurance for cars or motorcycles if you own the dealership more than the car or motorcycle is now worth. This insurance policy will cover the difference between what the insurer will give you and how much it would cost to replace the car/motorcycle.

What to do if Your Car Or Motorcycle Is Stolen

You should report the theft of any vehicle to the police immediately. Whether you report it on 101 or online, the Police will give you a crime reference number. Keep it safe, as it will be needed by your insurance company. You should contact them as soon as you have made the police report.

Learn about insurance for cars - Cashfloat

With the theft of a car or motorcycle, you might that the claim settling process is quite slow. This is because the insurance company is waiting to see if the vehicle is recovered. Generally, the FCA (Financial Conduct Authority) recommends that your insurer should make a reasonable offer of settlement within three months.

Your insurance company will pay the market value of the vehicle. I.e. the price you could have sold it for second-hand. If you are not satisfied with their offer, then it is up to you to prove it was worth more. You would then need to supply proof, such as car and motorcycle price guides or small ads in the local newspapers.

If you are in dispute with your insurance company, then you should keep a record of all your dealings with them. Note down the times, dates and contents of all telephone conversations as well as any correspondence by mail. This will be needed if you later need to go for arbitration.

So, is car insurance worth it?

It depends. If someone steals your car or motorcycle, could you afford to replace it? Or would you be left looking for a loan till payday? And would you be able to survive without your ‘wheels’? If not, then you should think about having it insured for theft. With the depreciation of most vehicles and the excess you pay, you will never get the full price of the vehicle. With insurance, at least you’ll get something towards the purchase of a new one. Insurance for cars and motorcycles can be pricey, but more often that not, they are worth it!

Learn about insurance for cars - Cashfloat

About The Author
Sarah Connelly
Sarah is an enthusiastic writer, blogger and an eager agent of change. After completing her degree in Computer Science in one of London’s esteemed universities, Sarah’s early career in programming left her creatively frustrated. Looked for a way to combine her creative and analytical side, Sarah’s search led her to Digital Marketing and now she writes content and code for Cashfloat. Sarah enjoys spreading awareness about common financial issues and the importance of money management. With her STEM background, Sarah believes strongly in ethical business management and consumer protection. in her free time, Sarah enjoys reading, watching movies and eating out. After all, #YOLO!
Blog disclaimer

We do all we can to bring you interesting, practical and valuable information. However, please understand the following:

Information and data on this blog are for information purposes only. While we work hard to ensure it is accurate, we cannot accept responsibility for the accuracy, completeness, suitability or validity of any information provided on the blog. We will not be liable for any errors, omissions, losses, injuries or damages arising from its display or use. All information is provided with no warranties and confers no rights.

If you feel that any of the information published on our blog is not accurate, please notify us via email at

Cashfloat is rated 4.82 stars by based on 607 merchant reviews

4.82 / 5 Rating
607 Reviews
Very helpful and I love their site. Very straightforward. Highly recommend.
As the new app so easy to use thank you for the friendly team , Who help me during my difficult time i definitely recommend this 😊
Found from start to finish very easy. When I phoned everyone was really helpful.
Bottom content

Cashfloat is a trading style of Western Circle Limited - Company Registration Number: 7581337. We are fully authorised and regulated by The Financial Conduct Authority. FCA full permission license: 714479. ICO Registration Number: Z3305234

* Cashfloat terms and conditions apply. Applicants must be 18 or over. All loans are subject to affordability, applicant verification and traditional credit checks via various national databases by Cashfloat responsible lending policy. In most cases, loan decisions may take up to 30 minutes during office working hours. If your bank does not support Faster Payments, funds will be sent to your account the same day as approval so long as you’re approved by 16:30.

Representative example: Borrow £500 for 4 months. First monthly repayment of £172.09. Second and third monthly repayments of £229.45 Fourth monthly repayment of £114.75. Total repayment £745.74, interest rate p.a. (fixed) 226%. RAPR 695%. Our APR includes all applicable fees. Daily interest is capped at 0.75%.

Warning: Late repayment can cause you serious money problems. For help, go to

This site uses cookies. Find out more.