What happens if my financed car is stolen?
"My car was stolen and I still owe money on my loan. What can I do?"
Answer provided by
Answered on Jul 28, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
“Since your vehicle is financed, you likely have both comprehensive insurance and collision insurance.
Comprehensive insurance will cover costs if a vehicle is stolen. Since your vehicle hasn’t been recovered, your insurance will likely pay you the actual cash value of your vehicle. Depending on your loan terms, this may or may not cover the remaining balance on your loan.
If you have gap insurance and still owe money on your loan, it will cover the difference.
Unfortunately without gap insurance or comprehensive insurance, you would be responsible for your loan balance. Even if your car is not recovered, you’d still be required to make payments on your loan or it could go to collections.”
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