Getting your car stolen is a nightmare. But the nightmare might add something new to your life when you do not insure your car with a trusted car insurance company. You might not lose your car, but also your money, as you could face legal trouble that drains your bank account.
In this guide, we explain what can happen in different situations, including if your car was financed, rented, or later found.
Immediate Steps to Take After Your Car Gets Stolen
Even if you do not insure your car, you should act quickly to get your car back. The faster you move, the better the chance of recovering it.
Call the police
As soon as you realize that your car has been stolen, call the police immediately and report that your car has been stolen. You might have to send additional documents to the police, the car’s registration documents, and also the last time you saw the car.
Contact the Lender or Car Insurance Company
If the stolen car is a rented car or still being financed, inform the lender ot the finance company immediately so they can take action. Many financed or leased vehicles come with built-in GPS trackers for recovery purposes, so ask if one is installed and whether they can activate it.
If you were financing the car, you may still be responsible for making payments, even if the car isn’t recovered, unless you had full insurance coverage. If you’re renting, check your rental agreement or insurance to see if theft is covered.
File a Stolen Vehicle Report with the DMV
In some states, it’s necessary to file a stolen vehicle report with the Department of Motor Vehicles (DMV). This step helps prevent fraud and protects you from any illegal activity committed with your vehicle while it’s missing. It can also help in clearing your name from potential fines or tickets issued after the theft.
Try Using a Theft Tracking Tool
If your vehicle had a GPS tracker installed, activate it and share the data with the police. You can also check the vehicle history report to see if it’s been reported or spotted. These tools can sometimes show updates or records that help in locating the car.
Financed Car Stolen, No Insurance: What Will Happen?
If your car is stolen and you have no auto insurance, especially no comprehensive coverage, you will not get your money back. Even if you have the basic coverage, it does not cover theft. That means you are responsible for replacing the car out of your pocket. Depending on the value of your car, this can be a very big loss.
If the car is never recovered, there is nothing more the police can do after some time, and you might be left without a car or money.
If You Have a Loan – Do You Still Owe Payments?
The short answer is yes, you do. If you bought the car using a loan, you must continue making your monthly payments, even if the car is stolen.
This is one reason why lenders usually require full coverage insurance. Without it, you are not protected. So if the car is stolen and cannot be found, you’re stuck paying off a loan for something you no longer own.
This leads to a common question: “If my car is stolen, do I still have to make payments?” The answer is yes—unless your insurance would have covered the loss, which doesn’t help in this case if you had no coverage.
What Happens if a Rental Car Gets Stolen?
What happens if a rental car is stolen? That depends on whether you bought insurance from the rental company or used your insurance.
If you don’t have any kind of insurance and the rental car is stolen, you could be held responsible for the full cost of the car. Some credit cards cover rental car theft if you used the card to pay, but not all.
Always check what kind of coverage you have before renting a car. Otherwise, a simple trip could turn into a financial disaster.
Read also: How To Find A Stolen Vehicle Using Detailed Vehicle History
Financed Car Stolen With No Insurance
If your financed car was stolen and you don’t have insurance, the situation will eventually become worse.
You may lose the car but are still obligated to pay the insurance, and if you miss the payment, your credit score may drop, and that could lead to another consequence. They could take legal action against you if you fail to pay the car loan.
What if the car is recovered without the damage?
Sometimes, the police may recover the stolen car and return it to the respective owners. In some cases, it might come back in good condition. The car was stolen and recovered, no damage, sounds like a lucky ending, but there may still be problems.
There may be hidden damage, or missing parts, and in some states, you may have to pay fees for towing or storage. The car might also have a theft record now, which can reduce its value if you try to sell it later.
Preventing a Car from Being Stolen
The best way to protect yourself from being stolen is to implement to get your car protected before it is stolen by irresponsible people.
- Always park in well-lit, secure areas.
- Use steering wheel locks or alarm systems.
- Install a GPS tracker to help recover it if stolen.
Before you buy a vehicle, make sure to check if the car has never been stolen. Insurance might be expensive for a vehicle, but it’s best to get car insurance before or after you buy a vehicle for extra protection.
Conclusion
If your car is stolen and you don’t have insurance, you could lose everything. You’ll have to replace the car yourself, and if you still owe payments, you’ll have to keep paying. Rental and financed vehicles come with even more risks.
That’s why it’s always better to protect your car and yourself with insurance. And don’t forget to run a theft check before you buy a used vehicle. It could save you a lot of money and stress in the future.
Frequently Asked Questions
Can I stop paying on my loan if my car is stolen and I don’t have insurance?
No, you still have to make payments. Your loan doesn’t disappear just because the car was stolen.
If the police find my stolen car in perfect condition, do I get it back?
Yes, the car will be returned to you if it’s in good shape. But check for missing parts or hidden damage.
What happens if a rental car is stolen and I didn’t buy insurance?
If a rental car is stolen and you didn’t buy insurance or use a credit card that covers it, you may have to pay the rental company for the full cost of the car. Always read the rental agreement carefully.
