What should I do if my financed car had liability-only insurance and it was stolen and totaled?

"My financed car was stolen and found totaled. I still owe $7,000 on my loan.

They found the person who stole and damaged the car, but they don't have insurance. What should I do? Do I need to sue them?"

“What you should do next depends on the type of car insurance you have. If you have uninsured motorist coverage on your policy, you may be able to submit a claim for the damage.
However, if uninsured motorist coverage isn’t required by state law, it most likely won’t be included on your policy as you stated that you have liability car insurance only. If this is the case, you’ll want to consult a lawyer to see what your options are.
Without any type of collision car insurance, you are responsible for covering the remainder of your loan. If you pursue the person in court, you may be able to recover some of the damages to your vehicle and possibly pay off your loan. “
Emily Maracle
Answered on May 17, 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.

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