What to Do if Your Financed Car is Stolen Without Insurance

Only comprehensive insurance covers theft and provides compensation for a stolen vehicle. If your leased or financed car isn’t insured or isn’t insured enough, you still have to pay for everything, even if you don’t get the car back.

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Comprehensive insurance is the only type of coverage that includes car theft. If your car is stolen and you don’t have insurance, you can only get money back if the thief is caught and sentenced.

If youre financing or leasing a car, youre typically required to have full coverage insurance. However, if your insurance coverage falls short, youll be responsible for paying the difference. Whether you have the car or not, the obligation to repay the finance company remains.

If your car is stolen, report it immediately to the police, DMV and your insurer. Prompt reporting increases the chances of recovery, with statistics showing significant recovery rates within the first two days.

Comprehensive insurance is the only policy that covers car theft. With it, you can claim the vehicles value.

If you finance or lease a car, you still have to make payments, even if your insurance doesn’t cover the full amount or if you don’t have insurance at all.

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Having your financed car stolen is an incredibly stressful and challenging situation. Without comprehensive insurance coverage, you won’t receive any compensation for the stolen vehicle itself. However, even uninsured, you are still responsible for repaying the auto loan or lease. This article will walk through the key steps to take if your financed vehicle is stolen without insurance, your obligations, and tips to avoid this predicament.

Reporting a Financed Car Stolen Without Insurance

If you discover your financed car was stolen and you don’t have comprehensive coverage, take the following steps

File a police report right away providing all relevant details about the stolen car
Inform your state’s Department of Motor Vehicles (DMV) to have the car listed as stolen in their database.
Contact your lender or leasing company to notify them the car was stolen. Discuss potential next steps for repaying the loan or lease.
Consider consulting a lawyer regarding legal action if the thief is apprehended and convicted. You may be able to recoup losses through restitution.
If the car is recovered, you’ll likely need to pay any impound and storage fees to regain possession. Look into local groups that may help with these costs.

Though reporting the theft won’t get you insurance money for the stolen car itself, it maximizes the chances of recovering your vehicle and aids investigation and potential prosecution.

Your Repayment Obligations for a Stolen Financed Car

Though unfair, the hard truth is you remain fully responsible for repaying the auto loan or lease even if your financed vehicle is stolen and you lack comprehensive coverage. Here’s what you need to know:

Loans: You must continue making monthly payments as required by the original loan agreement, even without possession of the vehicle. Defaulting could lead to legal action, wage garnishment, and damaged credit.
Leases: Your lease obligations remain unchanged. You’ll need to continue payments through the full term of the lease. Penalties may apply for ending early or defaulting.
GAP insurance: This optional coverage pays the difference between the vehicle’s value and remaining loan balance. If you have GAP coverage, read your policy to understand how it handles theft.
Loan collateral: Lenders require you to maintain insurance on collateral like financed cars. Not doing so is breach of contract. Expect penalties.
Subrogation: If the thief is convicted and ordered to pay restitution, the lender may be able to recover some losses through subrogation. But this is not guaranteed.

While this outcome is extremely unjust, lenders must be made whole per the original finance agreement, even in cases of theft. That’s why maintaining comprehensive coverage is essential.

Avoiding a Stolen Financed Car Without Insurance

Here are some tips to avoid finding yourself in the nightmarish scenario of having an uninsured financed auto stolen:

Get comprehensive insurance: This is your only protection if your car is stolen. It’s typically required by lenders too.
Review policy limits: Ensure your coverage limit is sufficient to pay off the full loan balance. If not, consider GAP insurance.
Use anti-theft devices: Alarms, vehicle tracking, immobilizers and other anti-theft tech make your car less enticing to thieves. Score discounts for them too.
Don’t leave valuables visible: Stowed gadgets and gear won’t tempt break-ins. Never leave spare keys or vehicle paperwork inside either.
Park carefully: Use well-lit areas and garages when possible. Steer clear of high-crime neighborhoods.
Keep it locked: Always lock doors and close windows when your car is unattended. Take the keys with you. Don’t leave it running unattended.

Following these precautions and maintaining adequate insurance is key to avoiding major liability if your financed vehicle is stolen. Comprehensive coverage plus GAP insurance provides the most complete protection.

Recovering a Stolen Financed Car Without Insurance

If your uninsured financed vehicle ultimately gets recovered, here are some steps to take:

If damaged, work with your insurer if you have coverage for repairs like collision or under/uninsured motorist coverage.
Pay any impound and storage fees to reclaim your recovered car. Ask for help from local non-profits if you can’t afford these costs.
Review the car for signs of abuse, odometer tampering, or hidden mechanical issues caused by the thief.
Document damage with photos. File a police report if the car was vandalized.
Ask the court about possible restitution if the thief is convicted. Consult a lawyer for guidance pursuing compensation.
Notify your lender immediately that the vehicle was recovered. Keep making payments per your agreement.
Consider selling the car and buying an affordable replacement to lower payments going forward.

Though getting your car back seems lucky, you may be left with a damaged vehicle you now owe even more on. Avoid getting upside-down by keeping comprehensive insurance to get properly compensated in a theft.

Final Thoughts

Having an uninsured financed vehicle stolen can spell financial disaster through little fault of your own. Protect yourself by maintaining adequate insurance, employing anti-theft measures, and never leaving your car unattended with the keys inside. If the unthinkable happens, act swiftly to report it, then explore all options for continuing payments or recovering losses. With preparation and diligence, you can minimize this risk.

How to Report a Stolen Car Without Insurance

Please let the police know as soon as possible after you are sure that your car was stolen. Next, let the Department of Motor Vehicles (DMV) know. That being said, you should still let your insurance company know that your car was stolen in case the thief damages or wrecks it. Otherwise, your insurance company won’t pay for it. If the vehicle gets damaged while stolen, your liability insurance won’t cover the repairs. 1.

Before assuming your car is stolen, double-check to make sure its not a misunderstanding. Think about whether you parked somewhere else or whether a family member or friend borrowed it without telling you. 2.

If you confirm the car is stolen, immediately report it to the police. When reporting, provide them with the following details:

The Vehicle Identification Number (VIN)
Make and model of the car
The color and any distinctive features
The last known location of your car
License plate number
Approximate time of theft

Obtain a copy of the police report for your records.3

Report the theft to your states Department of Motor Vehicles (DMV). The DMV maintains a database of stolen vehicles and works with the police to recover them. 4.

It’s still a good idea to let your insurance company know about the stolen car, even if they don’t cover it. This can be helpful in case the thief causes damage or gets into an accident with your car. 5.

If your car is recovered, you might have to pay impound and storage fees. Look into local resources that might assist with these expenses.

Reporting your stolen car to the police, the Department of Motor Vehicles (DMV), and the National Insurance Crime Bureau (NICB) as soon as possible greatly improves your chances of getting it back.

According to the NICB, in 2022, law enforcement recovered over 85% of stolen vehicles, including full-size pickups. Actively reporting boosts recovery rates, with 34% of vehicles found on the theft day and 45% within two days.

Most Stolen Car Models

People in the United States love pickup trucks, but they are also the most common type of vehicle to be stolen.

Car Model	Number of Thefts	Model Most Stolen	Starting Price
Chevrolet Full-Size Pickup (2004)	49,903	2004	$28,728
Ford Full-Size Pickup (2006)	48,175	2006	$28,433
Honda Civic (2000)	27,113	2000	$21,824
Honda Accord (1997)	27,089	1997	$25,036
Hyundai Sonata (2013)	21,707	2013	$23,172
Hyundai Elantra (2017)	19,602	2017	$19,295
Kia Optima (2015)	18,221	2015	$18,417
Toyota Camry (2021)	17,094	2021	$26,283
GMC Full-Size Pickup (2005)	16,622	2005	$31,669
Honda CR-V (2001)	13,832	2001	$25,377

Notably, some Hyundai and Kia models lack an engine immobilizer, a key anti-theft feature. This absence contributed to a surge in thefts of these models in 2021, as reported by Kelley Blue Book. Ensuring your vehicle is equipped with effective anti-theft technology, like engine immobilizers, can significantly deter theft.

What Happens When Your Car Is Stolen Without Insurance?

Should I get car finance if my car is stolen?

If there’s a shortfall between the amount you paid for your car or owe on finance and the settlement figure offered by your insurer if your car is stolen, then Guaranteed Asset Protection (GAP) insurance could cover this. Although this insurance isn’t a legal requirement, it is worth considering if you get car finance to buy a vehicle.

What happens if a car is stolen if you’re uninsured?

If your car is stolen and you’re uninsured, financial compensation is only possible if the thief is caught and convicted. If you’re financing or leasing a car, you’re typically required to have full coverage insurance. However, if your insurance coverage falls short, you’ll be responsible for paying the difference.

Do I need car insurance if my car is stolen?

Financed or leased vehicles usually need full coverage insurance, including comprehensive theft coverage. If your car is stolen, insurance pays its current cash value. But, if this is less than your loan or lease balance and you lack GAP insurance, you must cover the shortfall.

What happens if a stolen car is found and returned?

If your stolen car is later found and returned to you, you’ll need to get a letter from your insurance company confirming this. However, if your car isn’t recovered and returned to you, you’ll need to pay off the remaining balance on your PCP finance car loan or HP finance with the insurance payout amount.