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?"
“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.”
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Browse by topics
What others are asking
Does Liberty Mutual offer classic car insurance?
Can I add my classic car to my Liberty Mutual policy? I just inherited a classic car and I need to insure it. My own car is insured through Liberty Mutual.
Jul 14, 2021
How often should I review my policy with State Farm?
Should I wait for renewal when they might change my rates or review it sooner? I haven't renewed my policy yet, but I'm wondering when a good time is.
Jul 22, 2021