Car theft is an unfortunate situation that many people find themselves in. For as much as people want to avoid theft, it can be difficult to predict when someone will steal a vehicle and use it to make money or use it as transportation to commit another crime. While there are clear steps to take when a person steals your vehicle, you may wonder what to do if your car is stolen with a title loan. Well, the process you must follow in that scenario is similar to a regular car theft, with one different step you must take as a responsible title loan borrower.
First, call the police immediately to file a report as soon as you discover that your vehicle was stolen. A police report won’t guarantee the recovery of your vehicle, but delaying your report could reduce the chances of getting your car back. Next, if your car is insured, you must report the incident to your insurance company to initiate a claim. If you have comprehensive coverage, the insurance company can provide financial assistance based on your vehicle’s actual cash value (ACV) to help you cover the damages of your stolen car or the payment of a replacement vehicle if you don’t recover your stolen car.
Once you complete the previous two steps, you must then speak with your title loan lender about the theft and provide the numbers for your police report and insurance claim. A title lender acts as the lienholder on your car’s title and has a legal claim to your vehicle, which is why they must understand what happened to the collateral they took to give you money in exchange. Depending on your insurer, they may issue a check directly to you or to your lender to cover the remaining balance you owe on your title loan. However, it’s worth noting that the amount your insurer will pay on your car title loan will depend on your ACV, so you may have to cover the remaining total if your vehicle’s ACV isn’t enough to pay off the loan.
Although it’s discouraging to read that your car’s value may not cover the entire loan balance, you can lessen the financial burden of repaying your loan by notifying your insurance company about the theft. It’s best to have all the assistance you can use to repay your debt after a person unexpectedly stole your collateral during the repayment process. If needed, you can try negotiating for payment options to help you pay back your loan if you have trouble covering your monthly payments. In the event that you matched with a lender with the help of Max CashⓇ Title Loans and someone stole your vehicle, you can always speak with a knowledgeable representative at 855-561-5626 about the incident to answer any questions you may have about what to do in your situation.² ⁵
Continue reading to learn the different outcomes of a stolen vehicle with a title loan and what you can do to protect your car from a potential theft.
What Happens if My Car is Stolen with a Car Title Loan and I Don’t Have Auto Insurance?
As mentioned previously, having auto insurance on your car can help you lessen the financial impact of a theft. If you have comprehensive insurance coverage, your insurer can help you cover the damages of your stolen car or the cost of a replacement vehicle if you are unable to recover your car. If your car is stolen with a title loan, your insurance company can pay the remaining balance of your loan based on your vehicle’s ACV. You’re responsible for the remainder of your loan total that your insurance company couldn’t pay for, but you may deal with a lower amount than you would have without your insurance’s payout.⁴
However, if your stolen vehicle doesn’t have insurance, you must pay off the entire loan balance on your own. If you recover your car and find damage, you won’t have any comprehensive coverage available to help you manage the costs of replacement parts. Additionally, you won’t have any financial assistance from an insurance company if you don’t recover your car and want to buy a new vehicle. If you’re able to get your car back, you will end up paying a lot more money out of pocket if you didn’t have insurance on your stolen vehicle, and you won’t have the financial aid to help pay for your remaining title loan amount.
Even if your car is insured, though, you may still be liable for the costs of replacement parts or a new car, and you’d be responsible for the remaining title loan balance if you only have liability insurance and no comprehensive coverage. It’s important to understand that liability coverage will only help you pay for any property damage and / or injuries you cause to another party, and not for the damages someone may cause to your car. If you have collision coverage but not comprehensive insurance, you will also pay for the damage or replacement of a stolen car since collision only pays for repairs to your vehicle or another person’s vehicle in case of an accident. Individuals with comprehensive insurance can receive a payout for their loan payments, with the money usually sent directly to a title loan lender as a check.
Before you decide to apply for an online title loan, ensure your vehicle has the right comprehensive coverage to help you during an unfortunate event, such as an auto theft. You may still have to cover the remaining loan balance, but your car insurance can make a major difference in the amount you’ll pay throughout the remainder of your repayment period.⁴ Make sure you review your insurance company’s policies carefully and determine how much they’d pay if someone stole your car while you had a title loan. Although you’re not legally obligated to have comprehensive insurance, your lender may require you to have this type of insurance to qualify for the funds you need to manage a sudden expense.⁵
Will I Still Pay for My Auto Title Loan After My Car Was Stolen?
Yes, you are still legally obligated to pay off your auto title loan, even if your car is stolen. Since your title lender has a legal claim to your vehicle, you are expected to fulfill the terms of your contract and continue making payments until your final due date.⁴ While it’s unfortunate that someone stole your car, the collateral you use to borrow money is your vehicle’s title and not the physical car itself. The lender has a lien on the title, and your obligation to repay the debt remains, regardless of whether you possess the car or not.
Keep in mind, though, that you can try negotiating with your lender about any pauses to your repayments until the police complete their investigation. It may be challenging to find a lender willing to make that decision, but you can attempt to speak with your lender about that potential solution as a result of your unfortunate situation. However, you can discuss more reasonable alternatives with your lender if you have problems covering your monthly installment payments. You can choose different options to manage your payment schedule, such as requesting a loan extension, loan modification, or potentially refinancing your loan with another lender that offers better loan terms and competitive interest rates.⁴
It’s essential to remember that your insurance company may help cover a portion of your loan payments if you have comprehensive coverage. Although you’re responsible for your loan payments, you can possibly work with a more manageable payment amount if your insurer sends a payout to your title loan lender.⁴ Review all of your available solutions carefully if you need help covering the rest of your loan payments after your car is stolen. Don’t hesitate to speak with a Max CashⓇ Title Loans representative at 855-561-5626 if you have questions about how to pay this type of secured loan if you match with a lender through them.² ⁵
What Happens if Your Stolen Vehicle is Recovered?
If you’re fortunate enough to recover your stolen vehicle, you must first notify your insurance company of its return and have them inspect it for any damage. You might have read how insurers can pay for repairs to your stolen vehicle if you have comprehensive insurance, so you might not have to worry about covering the full amount to fix your car. In the event that the police recover your vehicle before your insurance claim is settled, your insurer will typically stop the claim until they’ve completed their inspection. However, if the car is returned to you after you received your payout, the ownership of the vehicle may change to the insurance company because of the settlement agreement you made with them.
The payout an insurer would make to you if you didn’t recover your stolen vehicle can also occur if your insurance company declares your car as a total loss. Your insurer will pay you the amount based on your vehicle’s ACV, which you can then use to purchase a brand-new car. No matter what the status of your returned car is, you must speak with your lender about the police finding and recovering the stolen vehicle. Similar to a situation when your vehicle is stolen, you must still pay for the remaining balance on your loan if you recover your car, as you’re responsible for completing your payment obligations.⁴
If your stolen vehicle is recovered but you don’t have insurance, you may have to cover the full cost of any damage or a replacement vehicle. That’s why it’s important that your car has comprehensive coverage, regardless of whether you’re thinking of getting an auto title loan or not. If you’re considering applying for an online title loan, though, you may still need comprehensive insurance to get approved for fast money.⁵ It’s best to have all the necessary protections on your car to prepare yourself for any situation, especially if you use it as collateral for a vehicle title loan online.
How to Protect Your Car from Getting Stolen
While it’s difficult to predict a car theft, you can take measures to protect your vehicle from getting stolen. There isn’t a 100% guaranteed method to avoid a potential theft, but you can lower the chances of your car getting stolen if you implement some effective strategies to keep your vehicle safe.
Take a look at different preventive techniques you can follow to protect your car from possible theft:
- Lock Your Doors at All Times
- Do Not Leave a Spare Key Inside Your Vehicle
- Avoid Leaving Your Car Running and Unattended
- Close Your Windows
- Install a Tracking System in Your Car
- Park Your Vehicle in Well-Lit and High-Traffic Areas
- Turn On the Car Alarm
- Install Steering-Wheel Locks and Dash Cams to Scare Off Thieves
- Place Immobilizer Systems That Disable Your Car
While auto theft is not as common as it once was, it is unfortunately still something you need to protect yourself against. Regardless if you have a title loan on your vehicle or not, you must implement some effective measures to keep your vehicle safe from a potential thief. If you took out a title loan and later lost your vehicle, you must report the incident to the police and to your respective lender. In the event that you have comprehensive coverage, you can potentially access financial assistance to cover a portion of your remaining title loan balance.
Dial 855-561-5626 to ask any questions or concerns you may have about what to do if your car is stolen with a title loan. If you feel confident about getting money through an auto title loan, you can begin your loan process today by inquiring about financial aid with the help of Max CashⓇ Title Loans!² ⁵