What Happens if Your Car is Stolen and Never Found? 

Car theft is an unfortunate reality that many people face each year. In 2022, over 1 million vehicles were reported stolen in the United States. The sudden disappearance of a vehicle not only brings about stress, but also raises many legal and financial questions. For instance, what happens if your car is stolen and never found?

Reporting the Theft to Law Enforcement

When you discover your car has been stolen, promptly contact your local police department to file the theft report. This report is an important document that both law enforcement and insurance companies use to decide if your claim is valid. Always give them accurate information about the make, model, year, color, and any unique features of your vehicle.

Additionally, be ready to share details about the circumstances of the theft, including when and where it occurred, along with any potential witnesses. Your vehicle’s identification number (VIN) and license plate number should be included in the report so they can search for that specific car.

Reporting the theft to local police is required for insurance claims, and it also increases the chances of your vehicle being located and returned.

Reporting to DMV and Updating Records

Informing the Department of Motor Vehicles (DMV) about the theft of your vehicle should be done as soon as possible. This helps keep accurate records and prevents potential issues related to the stolen vehicle, such as fraud or disputes over ownership. After reporting the theft to the DMV, you should update your vehicle registration and other records. Additionally, if the stolen vehicle is later recovered, notify the DMV promptly and follow their instructions regarding the necessary steps for re-registering the vehicle.

Insurance Coverage

Comprehensive and collision coverage are two different types of auto insurance policies. Comprehensive coverage insures against non-collision incidents, including theft, vandalism, or natural disasters. On the other hand, collision coverage applies to accidents with other vehicles or objects. With a stolen car, comprehensive coverage can potentially provide financial relief for the loss.

Before filing a claim, it’s important to know your insurance policy and promptly notify your insurance provider about the theft. Be prepared to provide details and evidence surrounding the incident, including the police report, the circumstances surrounding the theft, and any additional information requested by your insurer.

Declaring a Total Loss

In the wake of a stolen car, one term that often surfaces is “total loss.” When a stolen vehicle is not recovered, or if it is found but has sustained irreparable damage, insurance companies may deem it a total loss. The insurer will typically offer a settlement based on the vehicle’s pre-theft market value, taking into account any applicable deductibles.

At this stage, the owner can decide to accept the settlement the insurance company offers. By doing so, they give up any remaining claim to the stolen vehicle. However, it’s important to note that in some cases, insurance policies may have specific clauses regarding what happens if a stolen vehicle is recovered after a payout has been made. These provisions can vary, so policyholders should carefully review their insurance policies to fully understand their options in different scenarios.

Financial Obligations: Outstanding Loans and Lease Agreements

Suppose the stolen vehicle was under a loan or lease agreement at the time of the theft. In that case, informing the lender or leasing company about the incident and following their instructions regarding the next steps is essential. Often, the owner is legally obligated to pay for the losses, even if the car is never found. This means continuing to make payments on the loan according to the agreed-upon terms. Failure to do so can result in financial penalties, damaged credit, and potential legal action from the lender.

Navigating Legal Avenues

When a car vanishes due to theft and is never recovered, certain situations can leave victims with little to no relief. These people may not have the right insurance coverage or may have unexpected delays in the claims process, from an inability to commute to work to the emotional toll of losing the car they loved. Additionally, the financial strain of replacing a stolen vehicle can add further hardship.

However, when insurance coverage cannot be relied upon, victims may have to  rely on:

• Negligent Security Claims: If the theft occurred on someone else’s property, like a parking garage, it could be argued that inadequate security measures contributed to it. In these cases, you may be within your rights to file a negligence claim against the property owner.
• Product Liability Claims: If a vehicle was stolen due to a defect or design flaw that made it easier to steal, filing a product liability claim against the manufacturer may lead to compensation for the victim.
• Third-Party Liability Claims: If the theft was facilitated or enabled by a third party (like a valet service or a repair shop), victims may be able to file a claim against the at-fault party for their negligence or role in the theft.

Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

Years of Experience: 30+ years
LinkedIn Profile: Richard Barnes