In recent discussions about vehicle theft and insurance coverage, insurance brokers have emphasized a crucial piece of advice: vehicle owners need to have purchased Comprehensive Insurance to qualify for compensation if their car is stolen. A concerning trend has emerged in Southern California, where Chinese car owners have become victims of towing scams. One unfortunate owner witnessed her luxury vehicle, valued at nearly $300,000, being stolen right before her eyes.
I had the opportunity to speak with Angelina, a driver from Southern California, who recounted her unsettling experience following a hit-and-run accident. Upon the scene, she noted that three unrequested tow trucks suddenly arrived, insisting they needed to tow her vehicle. She described how a man, claiming to be a witness to the accident, asked for her contact information. Only minutes later, she received a call from someone claiming to be a representative of a roadside assistance program; however, Angelina realized that her vehicle wasn’t registered with any such service.
Law enforcement has indicated that scammers often monitor police radio communications to learn about accidents and swiftly arrive on the scene, impersonating tow truck companies dispatched by insurance firms. Police are warning victims to be cautious; if they allow these fraudulent entities to tow their vehicles, recovery may become impossible, and the car could end up at a junkyard or be subject to extortion.
In light of these alarming incidents, Jason Wang, the manager of the Auto and Home Insurance Department at Huaxing Insurance, offers some practical advice. He suggests that if your vehicle is stolen, the first step is to immediately report it to the police to see if recovery is possible. If recovery isn’t feasible, contacting your insurance company right away is critical. Insurance companies will evaluate the vehicle based on its year, mileage, and condition, then initiate the claims process. Importantly, all this hinges on the owner having Comprehensive Insurance, which is generally required for new cars or those with outstanding loans. This type of coverage includes protection against glass damage, intentional scratches, and theft.
Jason further reassured that typically, making a claim for a stolen vehicle shouldn’t affect the owner’s future insurance rates. However, he cautions that if the owner wants to switch insurance companies the following year, they may face difficulty obtaining coverage.
