Car Theft & Total Loss Claims
Has your car been stolen or declared a total loss? Learn what your car insurance covers, how to make a claim, what documents you need and how your payout is calculated.
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Can you claim insurance if your car is stolen or declared a total loss?
Yes, you may be able to claim if your car is stolen or declared a total loss, depending on your insurance coverage and policy terms.
For example, comprehensive car insurance generally covers theft and eligible damage to your own car. Third-party, fire and theft (TPFT) insurance covers theft and fire involving your car, but not accidental damage to your own vehicle. Meanwhile, third-party car insurance covers your liability to other people, not the theft or damage of your own car.
| Type of car insurance | Theft of your car | Accidental damage to your own car |
|---|---|---|
| Comprehensive | Generally covered | Generally covered |
| Third-party, fire and theft (TPFT) | Generally covered | Not covered |
| Third-party only | Not covered | Not covered |
Coverage is subject to the policy wording, exclusions and claim requirements.
What is a total loss car insurance claim?
A total loss claim happens when your car is stolen and not recovered, or when the insurer determines that it cannot be repaired or is beyond economical repair.
There are two terms you may come across: Actual Total Loss (ATL) and Beyond Economic Repair (BER). Learn more about what happens when your car is declared a total loss.
Actual Total Loss (ATL)
Actual Total Loss generally refers to a vehicle that has been completely destroyed or cannot be recovered. A stolen car that remains unrecovered may also be treated as a total loss, subject to the insurer's assessment.
Beyond Economic Repair (BER)
Beyond Economic Repair means the car may still be physically repairable, but the insurer determines that repairing it is not economically worthwhile under the applicable assessment and policy terms.
| Term | What it means | Example |
|---|---|---|
| Actual Total Loss (ATL) | The car is destroyed or cannot be recovered | A vehicle is severely damaged in a major fire |
| Beyond Economic Repair (BER) | Repairing the car is considered uneconomical | The estimated repair cost is too high compared with the car's value |
The insurer will assess the circumstances before deciding whether your car qualifies as a total loss.
How do you make a car theft insurance claim?
Finding out that your car has been stolen can be stressful. Taking the right steps early can help you provide the information your insurer needs.
1. Make a police report
Report the theft to the police as soon as possible. Provide details such as your car's registration number, make, model, location and when you last saw it.
2. Contact your insurer
Notify your insurance company and ask about its theft claim procedure. If you bought your policy through BJAK, you can read who handles your insurance claim: BJAK or the insurer to understand each party's role. The insurer or Takaful operator assesses the claim and makes the decision.
3. Prepare the required documents
Gather your police report, insurance policy and vehicle ownership details. Your insurer may ask for more documents or information during its investigation. You can refer to BJAK's guide to documents required for an insurance claim to understand what may be needed for a theft claim.
4. Cooperate with the investigation
The police and insurer may need time to investigate the theft. Respond to requests for information and keep copies of the documents you submit.
5. Wait for the claim decision
The insurer will assess your claim and determine whether compensation is payable under your policy. The timeline varies depending on the investigation, the documents required and the circumstances of the case.
For a broader overview of the process, read BJAK's Car Insurance Claim Process guide.
What documents do you need for a car theft or total loss claim?
The exact documents depend on your insurer and the circumstances of the claim. You may be asked to provide the following:
| Document | Why it may be needed |
|---|---|
| Police report | Records the theft or incident |
| Insurance policy or e-cover note | Confirms your insurance details |
| Vehicle registration details | Helps verify the vehicle |
| Owner's identification document | Verifies the policyholder's identity |
| Completed claim form | Records the details of the claim |
| Original and spare car keys, where requested | May be required during a theft claim investigation |
| Bank or hire-purchase documents, where applicable | Helps establish outstanding financing and settlement requirements |
Your insurer may request other supporting documents, so check its instructions before submitting your claim. BJAK's documents required for an insurance claim guide also covers the importance of preparing the right paperwork.
How much can you receive for a total loss claim?
The payout depends on your policy, the insured value of your car, the insurer's assessment and any applicable terms or deductions.
Your sum insured is the value stated in your policy. It can affect both your premium and the amount you may receive for a covered loss. Learn more in BJAK's guide to sum insured in car insurance.
Market value vs agreed value
| Policy basis | How the payout is generally determined |
|---|---|
| Market value | Based on the car's market value at the time of the loss, subject to the policy terms and applicable limits |
| Agreed value | Based on the value agreed with the insurer when the policy starts, subject to the policy terms |
For example, if your car was insured for RM50,000, that does not automatically mean you will receive RM50,000 if it is stolen or written off. Under a market-value policy, the payout may depend on the car's value at the time of the loss and the policy's limits.
To understand the difference, read BJAK's guide to market value vs agreed value car insurance.
The final settlement depends on the policy terms, claim approval and any applicable deductions.
What happens if your car is still under a bank loan?
If your stolen or written-off car is still under hire purchase, the insurance payout may be used to settle the outstanding loan first. The amount you receive depends on the approved claim payout and the remaining loan balance.
| Situation | What may happen |
|---|---|
| Claim payout is higher than the outstanding loan | The remaining amount may be paid to you after the loan is settled and applicable deductions are made |
| Claim payout is lower than the outstanding loan | You may still need to pay the remaining loan balance |
| Loan has already been fully settled | The payout may be made to the eligible policyholder, subject to the policy and claim requirements |
Important
Contact your bank and insurer to confirm the settlement process. Do not assume that an insurance payout will automatically clear your entire loan.
Does a total loss claim affect your NCD?
It can. Your No Claim Discount (NCD) may be affected when you make a claim, depending on the type of claim and your policy rules.
For example, an own-damage claim may affect your NCD at renewal. The effect of a theft claim depends on the applicable policy terms, so check with your insurer rather than assuming every claim has the same outcome.
Before renewing, you can check your current discount using the BJAK NCD Checker.
What should you check before buying car insurance?
The right cover can make a difference if your car is stolen or declared a total loss. Before buying or renewing your policy, consider the following.
Check the type of cover
Make sure your policy includes theft protection if you want to claim for a stolen car. Comprehensive and TPFT policies generally include theft cover, while third-party-only insurance does not.
Check the sum insured
Choose an insured value that reflects your car's value and the valuation basis offered by your insurer. BJAK's sum insured guide explains why setting the right amount matters.
Check market value or agreed value
Understand how your insurer calculates compensation if your car is stolen or written off. Read about the differences between market value and agreed value before choosing your policy.
Read the policy terms
Check the exclusions, claim requirements, excess and other conditions that could affect your claim.
Keep your documents updated
Keep your policy details, vehicle ownership documents and insurer's contact information accessible so you can find them quickly if an incident happens.
How to choose car insurance with theft protection
Different policies offer different levels of protection. When comparing quotes, look beyond the premium and check what each policy covers.
| What to compare | Why it matters |
|---|---|
| Theft protection | Helps determine whether a stolen car may be covered |
| Accidental damage cover | Matters if you want protection for damage to your own vehicle |
| Sum insured | Affects the premium and may affect your claim settlement |
| Market value or agreed value | Determines the basis used to calculate a total loss payout |
| Excess and exclusions | Helps you understand the costs and limitations that may apply |
| Claim process | Helps you understand the documents and steps required |
You can compare car insurance options on BJAK to review available plans and choose cover that suits your vehicle and needs.
Car Theft & Total Loss Claims FAQs
You may be able to claim if your policy includes theft protection, such as comprehensive or TPFT cover, and you meet the insurer's requirements. Third-party-only insurance does not cover the theft of your own car.
Report the theft to the police as soon as possible, then contact your insurer to report the incident and confirm the claim procedure.
There is no fixed timeline for every claim. The process depends on the investigation, the documents required and the insurer's assessment.
Comprehensive insurance generally covers eligible theft and accidental damage to your own car. Whether a loss qualifies as a total loss and how much is payable depend on the policy terms and the insurer's assessment.
The amount you receive depends on your policy's valuation basis, sum insured, your car's value and any applicable terms or deductions. For more information, read BJAK's guide to understanding sum insured in vehicle insurance.
The payout may be used to settle the outstanding hire-purchase loan first. If the payout is lower than the remaining loan balance, you may need to pay the shortfall yourself.
Third-party-only insurance generally covers your liability to other people, not theft or damage to your own vehicle. You would generally need comprehensive or TPFT cover for a theft claim.
It may. The effect depends on the type of claim and applicable policy rules. Confirm the impact with your insurer before your next renewal.
Start with the BJAK Car Insurance page to compare available options and review their coverage details.