Do I still have to pay my car if it gets stolen?
Asked by: Prof. Euna Will Sr. | Last update: July 15, 2025Score: 4.3/5 (67 votes)
What happens to car payment if car is stolen?
Unless you take out GAP insurance when financing a car, you will have to continue making monthly payments when the vehicle is stolen. However, you will be free to sign a new agreement once you have paid off the remaining balance on your auto loan.
What happens if your car gets stolen from a dealership?
The dealer's insurance should cover this loss. While the car is in their possession they must take care to prevent damage or theft. So, Monday morning make a claim to their insurance and if they do not offer a reasonable settlement then you will have to sue them.
What usually happens when a car is stolen?
After you've filed a report with the police, the next call you need to make is to your insurance company. They will guide you through the process of filing a claim. Be prepared to provide them with information such as your policy number, the police report number and any other relevant details they may require.
Who is responsible if your car is stolen?
Explanation of Liability
When your car is stolen, the thief usually takes on the liability for any accidents they cause. However, certain situations might complicate this general rule, making it essential to know the specifics.
What Happens if the Car I'm Financing Is Stolen? : Personal Finance & Insurance
Does insurance pay you if your car is stolen?
Stolen vehicles are protected by comprehensive coverage
If someone steals your vehicle and it's not recovered, your insurer will cut you a check for your car's current value if you have comprehensive coverage. This may be true even if the car was stolen with the keys in it.
What happens if your car is stolen and you still owe money on Reddit?
You'll still owe the remainder of the loan. With theft coverage? If you had GAP insurance, you'll get whatever is owed on the loan. If you didn't have GAP insurance, you'll get the actual cash value of the car, and you'll owe whatever the difference is between what is owed on the loan and the ACV.
Will my insurance go up if my car was stolen?
Claiming a stolen vehicle becomes a part of your insurance claim history. While comprehensive claims are generally not viewed as negatively as at-fault accidents, multiple claims, including theft claims, can still affect your premiums. Location Matters: The area where your car was stolen may influence your rates.
What are the odds of getting your stolen car back?
According to Progressive Insurance's report, the US average rate for car theft recovery is 46%, but the rate varies greatly among states. For example, the stolen car recovery rate in Washington was 71%, in Utah was 63%, but only 28% in Alabama. All in all, the chance of finding a stolen car is quite high.
What happens if your car gets stolen and you have no insurance?
Unfortunately, if your car is stolen and you don't have insurance coverage, you may be responsible for the full cost of replacing your vehicle. When a car is stolen, the owner typically files a police report and notifies their insurance company.
Do police do anything about stolen cars?
Once the police receive the report, they will investigate and check for any leads or surveillance footage that could help identify the thief. They may also notify surrounding law enforcement agencies and other organizations specializing in stolen vehicle recovery, such as the National Insurance Crime Bureau (NICB).
What happens if you don't report your car stolen?
For one thing, the car could be used in a robbery, and the plates or VIN would come back to you. Same applies re a murder. And, of course, the odds against recovering it increase. Then, of course, your insurance company could find out you didn't properly report the stolen car, and NOT pay off.
What do thieves do after stealing a car?
Chopping up cars and selling the parts
Many criminals send stolen cars to chop shops, which provide lucrative opportunities for car thieves. Once a car is stolen, chop shop operators strip them for parts and sell them to other people who need parts for crashed cars.
How long does it take to recover a stolen car?
If you report your car as stolen immediately to police, there's a better chance it will be recovered. In fact, according to NICB data, 35% of recovered stolen vehicles are recovered on the same day as the theft, and 45% are recovered within two days.
What happens if I stop paying my car loan?
If you default on your auto loan, your lender will likely repossess the vehicle unless you surrender it voluntarily. A repossession can compound the damage done to your credit by your late payments and make it difficult to get approved for another auto loan for a while—or other types of financing like a home loan.
What happens if your car gets stolen and you have full coverage state farm?
If you have collision or comprehensive coverage, your auto insurance policy may cover a totaled or stolen car. In the case of a covered loss, you will typically be paid the actual cash value of your car minus your deductible.
What happens if your car is stolen and you still owe money?
What happens if your car is stolen and you still owe money? Unfortunately, when your car is stolen, you are still obligated to make payments on it. If your insurance claim payout is approved, you can use the claims check to pay against any amount owed.
Does insurance pay for a stolen car?
Does Liability Insurance Cover Theft in California? Every driver is legally required to carry liability insurance, which is designed to cover the other party if you cause an accident. Liability insurance doesn't cover theft, just damage and bodily injury to the other party caused by an accident where you are at fault.
Can a dealership track a stolen car?
GPS tracking devices allow dealerships to monitor these vehicles, ensuring they know where each asset is at all times. In cases where vehicles are stolen, dealerships can rapidly recover them thanks to SVR (Stolen Vehicle Recovery) systems.
Does a car being stolen decrease value?
As long as a vehicle has a clean title, its resale value shouldn't change purely based on the theft. Depreciation would come from your insurance company and whether it places a salvage title on the car.
What happens when someone steals your car?
If your car is stolen, you should file a claim with your insurance company. As long as you have comprehensive coverage, vehicle theft should be covered. If the car is later recovered after the claim has been paid, it's the insurance company's property.
How long does insurance wait for a stolen car?
To give you a short and sweet answer: Insurance companies typically wait 30 days before issuing a payout for a stolen vehicle, in case it is recovered by police before then. However, if you've experienced a vehicle theft, there's a few more things you should know.
Do I have to pay a deductible if my car is stolen?
You will get paid MINUS your deductible. So if you have a loan on that car, then you would likely owe that deductible amount to your lienholder. But if you own your car free and clear, then there's no one you'd owe that deductible to.
Does your car insurance go up if your car is stolen?
Claim History: If you have filed claims in the past, adding another claim for a stolen vehicle could be seen as increasing your risk profile, which might lead to higher premiums. Insurance Coverage: The type of coverage you have can also play a role. Comprehensive coverage is what typically covers theft of a vehicle.
How does GAP insurance work if your car is stolen?
So, if you took out a loan or leased a car, and the car is totaled or stolen before you can pay off the loan, GAP insurance will cover the difference between what you owe on the loan and the car's resale value.