As an expert in the field of car financing, I have seen many people face the unfortunate situation of having their financed car stolen. It can be a stressful and overwhelming experience, but it's important to know what steps to take in order to protect yourself financially. The first thing you should do if your car is stolen is file an insurance claim. Your insurance company will then pay for the value of the car, minus your deductible. This means that you will still have to pay the financial company for the remaining balance on your loan or lease.
However, any amount left over after paying off the loan will be yours to keep. It's also important to notify your lender if your car is stolen. This is just a good practice to keep them informed and updated on the situation. Now, you may be wondering why you still have to make payments on a car that has been stolen. The answer lies in understanding the financial responsibilities that come with a car loan and the role of comprehensive auto insurance. If you have comprehensive insurance, it will cover the actual cash value of your car at the time it was stolen. This is determined by how much the car was worth just before the theft occurred.
However, if you do not have insurance, you will need to explore other options for purchasing a replacement vehicle. In some cases, there may be a deficit between the amount you paid for your car or owe on your loan and the settlement amount offered by your insurance company. In this situation, guaranteed asset protection (GAP) insurance may cover the difference. If your car is found before the insurance claim is resolved, your policy will cover the cost of repairing any damage caused by the thieves. If the damage is too severe, they will cover the total amount of the vehicle. However, if your car is not found within a certain period of time, your insurance company will pay the actual cash value of your car. This is the price that an identical car would have on the open market. It's important to note that comprehensive insurance only covers theft and damage caused by theft.
If your car is stolen and then involved in an accident, you will need collision insurance to cover the damages. In conclusion, if your financed car is stolen, it's important to file an insurance claim and notify your lender. You will still be responsible for making payments on your loan or lease, but any remaining amount after paying off the loan will be yours. Understanding your insurance coverage and options for GAP insurance can also help protect you financially in this unfortunate situation.
