car got stolen. insurance company wants me to give them power of attorney. why?

Insurance companies ask for power of attorney in order to legally move the vehicle's title without having to get the owner's explicit permission each time the company needs to fill out a form, or so the company can sell the totaled vehicle to a salvage yard to compensate the driver. Reassurance for Policy Holders

Full Answer

How does a power of attorney work in a car accident claim?

Jan 27, 2010 · If you do not give them the info you could lose coverage for the theft. The response given is not intended to create, nor does it create an ongoing duty to respond to questions. The response does not form an attorney-client relationship, nor is it intended to be anything other than the educated opinion of the author.

What do insurance companies do when your car is stolen?

If your stolen vehicle is found, immediately notify your insurer. Comprehensive will pay to repair your vehicle if the thieves managed to put in a few fresh dents. You would owe the deductible amount. Most insurance companies have a waiting period of …

Why do insurance companies ask for power of attorney?

Oct 15, 2014 · The insurance company wanted me to sign a power of attorney and it says they would be poa to execute and sign my name to assignments of titles, transfers of titles, applications for titles or any other forms involving title to the motor vehicle until the title is out of my name, ratifying and confirming all the said attorney or substitutes ...

What happens if your car is stolen and you still owe money?

Feb 07, 2013 · They call me down to there fraud department asking me for my car key and phone records. My cell phone was in my car when my car was stolen, and they told me they needed my car key so when they find my car they can search it. My aunt gave me a phone after my car was stolen and now they want her phone records. Me and my friend has been supena.

How do you fight your insurance company?

Why would an insurance company give you money?

What happens when someone claims insurance on you?

Do insurance claims follow you?

How long does an insurance company have to settle a claim?

When an insurance company needs to provide a payout?

Can you contest a car insurance claim?

Do insurance companies go after uninsured drivers?

Can someone claim on my car insurance without me knowing?

How do car insurance companies know about previous claims?

Do insurance companies talk to each other?

What information do insurance companies have access to?

Make Sure It's Really Gone

Confirm your vehicle has actually been stolen. Rack your brain and make sure you are standing exactly where you parked your vehicle. Are you on the...

Ask Your Car Where It's Located

New cars are loaded with technology, and many of them can help the police locate your vehicle. General Motors’ OnStar system or Toyota's Safety Con...

Call Your Insurer and Lender

This should be your very next call after the police. "Call right after making the police report," advises Penny Gusner, consumer analyst with Insur...

Find Out If You’Re Covered

Comprehensive coverage will pay to replace your vehicle."Comprehensive is much, much cheaper to buy than liability or collision,” says Des Toups, m...

Prepare For The Third Degree

Expect some tough questions if your claim appears even slightly suspicious. Don't take it personally.Roughly $80 billion in fraudulent insurance cl...

What to do if your car is stolen?

Report the stolen car to the police. Once you have confirmed that your car has been stolen, call the police immediately to report the theft. Not only will you need the police report later, but it will give law enforcement officers an opportunity to keep an eye out for the stolen vehicle.

How long do you have to wait to declare a stolen car?

You would owe the deductible amount. Most insurance companies have a waiting period of 30 days before declaring the car gone for good.

How often is a car stolen in America?

A vehicle is stolen every 43.8 seconds in America. Here’s what to do if yours is one of them.”. Your car is no longer where you left it. It’s just… gone. A million questions probably went through your mind all at once.

Do you have to make payments if your car is financed?

If your car is financed, as noted, notify your lender as well. It’s just a good idea, though, um, yeah, you’ll still have to make your payments. Sorry to tell you that, but theft doesn't affect what your bank is owed. That’s why lenders require that you purchase comprehensive and collision coverage.

How long do you have to wait to pay deductible on car insurance?

You would owe the deductible amount. Most insurance companies have a waiting period of 30 days before declaring the car gone for good. After that point, your insurer will pay out the "fair market value" of your car – the price an identical car would bring on the open market.

Does comprehensive insurance drive up your car insurance?

Most comprehensive claims won’t drive up your rates, Megna says. Unfortunately, any valuables left in your vehicle, like a cell phone or laptop, usually aren't covered. But your homeowner's insurance or renters insurance might kick in. Your car may be found after you settle the claim.

Can you use a claims check to pay against a gap?

If your insurance claim payout is approved, you can use the claims check to pay against any amount owed. If the payout amount is less than the amount financed, it will be your responsibility to pay the difference. If you have gap insurance, check with your insurance agent to see if it will cover the difference.

Brian Heath Crockett

It sounds like your claim has been transferred to the insurance fraud department. Unfortunately, under your insurance policy, they probably have a right to obtain this information. If you don't comply with their request they will likely deny your claim for refusing to cooperate.

James T. Weiner

Actually this is quasi legal.. its legal if they have a reasonable suspicion that you have made a fraudulent claim. The key question is what is "reasonable" suspicion? However, some Michigan insurance companies are using allegations of fraud to delay, or eliminate, paying a claim.

John S. Fason

There is no clear answer to your question. The insurance company has the right to conduct an investigation before paying your claim. You have the obligation under your insurance policy (contract) to cooperate and assist in the investigation.

Can insurance do anything about a stolen car?

Your insurance company cannot do anything about your stolen car until it knows it's been stolen. Therefore, you must contact your insurance company and file a theft claim. Your insurance company will ask for a variety of information, including when and where you last saw your vehicle, what police department took your theft report and ...

What happens if you get your car stolen and you return it to the police?

Car Recovered and Damages Repaired. If the police recover your car and return it to you, you must notify the insurance company. If your car was damaged as a result of the theft, the insurance company will pay the repair costs minus any deductible you have.

What happens if you recover your car from insurance?

If your car is recovered, your insurance company will pay for any damages or issue a payment for your car's value if it's not, minus your deductible.

What happens if your insurance covers a rental car?

If your policy covers rental car coverage, your insurance company will provide you with a rental car or help you pay for one. You'll have use of the rental car until your car is either found or the insurance company pays you for the loss.

What happens if you get a car stolen?

If your car was damaged as a result of the theft, the insurance company will pay the repair costs minus any deductible you have. If you had personal items in the car and they were not returned with your car, it is unlikely your auto policy will cover this loss.

What does the insurance company issue you a check for?

Typically, the insurance company will issue you a check for the actual cash value of the car. This is the purchase price of the car minus depreciation and deductible. If you still owe money on a car loan or lease, this payment may go to the finance or leasing company first.

Does a power of attorney cover car insurance?

Additionally, the power of attorney granted to insurance companies is generally limited and covers only the necessary activities for fulfilling a car insurance claim.

Why do insurance companies ask for power of attorney?

Insurance companies ask for power of attorney in order to legally move the vehicle's title without having to get the owner's explicit permission each time the company needs to fill out a form, or so the company can sell the totaled vehicle to a salvage yard to compensate the driver.

What happens if you get ruined in a car accident?

If their vehicle is completely ruined in a car accident, they will have to work with their insurance company to get their total loss claim processed.

What is the process of getting compensated by an insurance company for a wrecked vehicle?

The process of getting compensated by an insurance company for a wrecked vehicle often involves the driver giving the insurance company some form of power of attorney.

What happens when an insured vehicle is totaled?

When an insured vehicle is totaled, the insurance company is basically forced to "buy" the vehicle from the owner. The amount they pay is the amount of compensation the driver receives, minus any fees, taxes, etc.

What happens if a car is ruined?

If their vehicle is completely ruined in a car accident, they will have to work with their insurance company to get their total loss claim processed. The process of getting compensated by an insurance company for a wrecked vehicle often involves the driver giving the insurance company some form of power of attorney.

How to notify insurance company of stolen car?

Once police are on the scene, you should notify your insurance company immediately of the situation by contacting your insurance agent or calling your insurance carrier’s customer service number.

Can you file a stolen car insurance claim?

It can be very embarrassing to file a stolen car insurance claim and police report just to realize it wasn’t stolen after all. Once you have worked through alternate reasons for your vehicle to be missing and determine your vehicle was stolen, it is time to start the car insurance claim process.

Why do insurance companies have a waiting period after a claim?

After you make a claim, some insurance companies have a waiting period because they want to see if the stolen car can be recovered. Any personal items inside your stolen car will not be covered by auto insurance—you would need a homeowner's or renter's insurance policy.

Does insurance cover a stolen car?

Does Insurance Cover Your Stolen Car? Typically, you must hold comprehensive coverage on your insurance policy to have coverage for a stolen vehicle. Even if your car was stolen from your residence, only an auto policy with comprehensive coverage will cover your loss, not your home insurance policy. 1 2.

Does auto insurance cover a car stolen from your home?

Even if your car was stolen from your residence, only an auto policy with comprehensive coverage will cover your loss, not your home insurance policy. 1 2. It is a common misconception that a home policy will cover a vehicle. When establishing your auto insurance policy, consider whether or not you should have comprehensive coverage.

What to do if your car is stolen?

Dealing With a Total Loss Claim. If your car is stolen, you have a total loss claim on your hands. You will need to come to an agreement with the insurance adjuster as to the current value of your vehicle minus your deductible. After an agreement is made, you will need to have your lender, if you have a loan, sign off on the title.

What happens if you get a stolen car?

If your car is stolen, you have a total loss claim on your hands. You will need to come to an agreement with the insurance adjuster as to the current value of your vehicle minus your deductible. After an agreement is made, you will need to have your lender, if you have a loan, sign off on the title. Finally, you need to sign the title ...

What happens if you disagree with the insurance company's valuation of your vehicle?

If you disagree with the insurance company’s valuation of your vehicle, you have the right to an objective, third party determination of value of that vehicle. In fact, the law requires that each side hire their own appraiser. THE APPRAISAL PROCESS: Your insurance company will hire an appraiser to appraise your vehicle.

Can you trust your insurance company?

You Cannot Trust Your Insurance Company! Car owners who have lost their normal (and often sole) means of transportation are in an extremely vulnerable position. They usually have no way to get to and from work and, of course, they have yet to be paid any money by their insurance company.

What is ACV in insurance?

ACV is the market value of the vehicle taking into consideration pre-loss condition, options, and mileage. To determine the amount it will pay you, your insurance carrier researches your vehicle’s market value by comparing your vehicle to vehicles that are for sale in your local area. The California Department of Insurance forces ...

Do you have to hire an appraiser for insurance?

In fact, the law requires that each side hire their own appraiser. THE APPRAISAL PROCESS: Your insurance company will hire an appraiser to appraise your vehicle. If you do not hire your own appraiser, then the insurance company will pay you what they deem is appropriate. In effect, you will be stuck with the insurance company’s valuation ...

How long does a rental car insurance policy last?

Even if the insured’s policy provides for rental car coverage, that coverage is usually limited to a maximum of 30 days, seldom long enough to resolve a total loss claim, especially where the insured can’t accept the insurance company’s offer.

How many days does an insurer have to pay a claim?

The Department of Insurance’s regulations make it clear that every insurer shall immediately, but in no event more than thirty (30) calendar days later, tender payment of the amount of the claim which has been determined and is not disputed by the insurer.

Can an insurer issue a partial settlement check?

Moreover, an insurer may not issue a check in partial settlement of a loss or claim that contains language releasing the insurer or the insured from total liability unless the policy limit has been paid or there has been a compromise settlement agreed to by the claimant and the insurer. [ 10 Cal. C. Regs. § 2695.4 (f)]

What happens when you file a claim on a car?

After you file a claim, your insurer will consider the value of your vehicle and the estimated costs of repair. If the costs of repair exceed a certain percentage of the car’s value, your insurer will declare the car a total loss. Some states also set what’s called a total-loss threshold, meaning a set number at which the car must be declared ...

Can you keep a car after it's been deemed a total loss?

If you elect to retain salva ge, i.e. choose to keep your car after it’s been deemed a total loss, you’ll still be paid out the car’s ACV, ...

What does total loss mean on auto insurance?

If your car is severely damaged in an accident, your auto insurance company may declare it a total loss, commonly referred to as “totaled.” This usually happens when the damage to the car would cost more to fix than the car is actually worth, or would cost more than a certain percentage of the car’s value. If you have comprehensive and collision coverage as part of your car insurance policy, a total loss will be covered, and you’ll be paid the actual cash value (ACV) of the vehicle.

How to get a car worth more than what your insurance company decided?

If you’re arguing that your vehicle was worth more than what your insurance company decided, you’ll need evidence, like recent photos of your car, proof that it was well-maintained and data about what price cars of the same make and model sold for in your area. Step 2. Get an independent appraisal.

Can you dispute a total loss settlement?

Your insurance company will generally declare your car a total loss if the cost to repair it exceeds a certain percentage of the car’s value. You can dispute a total loss settlement, but you’ll need lots of evidence to back up your dispute. Usually, a totaled car goes to a salvage yard, but you can choose to keep your vehicle.

Can you drive a car after it has been totaled?

However you cannot legally drive it until it’s fully repaired and declared a rebuilt.

What happens if you don't turn your car into scrap?

Generally, if it’s not turned into scrap, the totaled car goes to a salvage yard and the car’s title becomes a salvage title , marking it as a damaged car.