If your stolen vehicle is financed or leased, you’ll need to contact the financing or leasing company. In this scenario, the insurance company pays a claim out to the financing or leasing company and you’re no longer be liable for payments.
Do you still have to make payments on a stolen car?
In case your car is stolen while you are still paying the loan that you availed for it, you must still continue paying it. However, the process of repayment might change and differ based on whether you have a car insurance or not.
What to do if your car is stolen and you have car insurance?
You are still responsible for making car payments on the stolen car. Continue to pay for insurance coverage until the car is either recovered or considered a total loss by the insurer. Take proper precautions to avoid making your car an easy target for theft. What happens when I report my car stolen? Does car insurance cover theft?
Do you still have to pay your car loan if your car is totaled?
If you have “gap” insurance, this type of insurance coverage might pay the difference between the amount of the insurance company’s check and the amount you still owe on the car loan. To determine if you have gap coverage, consult the language of your insurance policy or speak with your insurance agent.
What to do if you owe a lienholder on a car?
If you want to get the lienholder’s name off of the title but don’t have the money to pay off the loan, consider obtaining a low-interest loan with a short repayment term, then pay it off after receiving funds from the sale of the vehicle.
What should I do if I owe money on a car?
The specific course of action you take will depend on several factors, including where your loan is held and whether the purchaser is a dealer or a private buyer. It’s a good idea to start out by checking with your lender for guidance and to find out exactly how much you owe. To make it official, get a payoff letter from your lender.
