What happens to my car loan if my car is stolen?

"My car was stolen a few days ago and it hasn't been recovered yet. What will happen to my car loan?"

Answer
“You should keep making payments on the vehicle until the situation is resolved, as you’re obligated to do so by the terms of the loan.
A resolution usually shouldn’t take more than 30 days, but if it does, don’t halt your payments. Doing so can create even more problems with your lender, as well as derogatory marks on your credit.
As far as the vehicle itself goes, your comprehensive coverage should cover the vehicle whether it’s recovered in the same condition, a total loss, or never found.
If it’s a total loss or never found, the insurance company will pay you the cash value of the vehicle before the theft, which you can then use to pay off the balance of your loan.”
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Eric Schad
Answered on Jul 27, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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