My vehicle was stolen and my insurer refuses to pay — what are my options?

Who must prove what

Whoever seeks to enforce a right must prove the facts supporting it; whoever claims that a right is null or extinguished must prove the facts relied on (article 2803). In practice, it is up to you to establish the theft; it is up to the insurer to establish its reason for refusing to pay.

The standard is the balance of probabilities: a fact more likely than not (article 2804). And good faith is always presumed (article 2805). An insurer that suspects fraud must therefore prove it; suspicion is not enough.

First ground: a statement said to be false

Any false statement forfeits the right to indemnity for the risk it relates to (article 2472). In theft files, the recurring points are how many keys there were and where they were, when the vehicle was last seen, the mileage, and its condition before the theft.

These are details people often give from memory, under stress. Hence the importance of never stating as certain what is not, and of correcting any inaccuracy immediately, in writing.

Second ground: insurable interest

A person has an insurable interest in property when its loss may cause them direct and immediate prejudice; that interest must exist at the time of the loss (article 2481). Insurance on property in which the insured has no insurable interest is null (article 2484).

This ground arises when the vehicle is registered and insured in your name but the insurer believes it really belonged to someone else — who paid for it, who used it, or for whom you acted as a front. Insurable interest is not the same as registration: what counts is the prejudice the loss causes you. Proof of payment, use and possession then becomes decisive.

Third ground: misrepresentation at the outset

When the policy was taken out, you had to disclose the circumstances known to you that are likely to materially influence the insurer in setting the premium or assessing the risk (article 2408) — for example the principal driver, how the vehicle is used, or where it is kept.

But in damage insurance, a misrepresentation does not automatically mean a full denial. Unless bad faith is established, or the insurer shows it would not have accepted the risk, it remains liable for the indemnity in the proportion of the premium collected to the premium it should have collected (article 2411).

The investigation and the sworn statement

Almost every theft claim leads to an investigation, and often to a sworn statement (article 2471). That is when the contradictions that lead to a denial take shape. Better to prepare for it than to have to explain them afterwards.

Deadlines

The insurer must pay within 60 days of receiving the information and documents it requested (article 2473). An action against the insurer is generally prescribed by three years (article 2925) — a deadline that keeps running during negotiations.