It might seem as if someone is playing a prank on you, but finding a car after it’s been stolen is quite common. While a car is stolen every 23 seconds in the U.S., and over 800,000 cars were stolen in the country in 2020, the recovery rate is also pretty high. Although the recovery rate varies across states and by type of car, in 2020 about 56.4% of cars were found overall.
If your car is stolen, then found, a few things could happen. Let’s say you did your due diligence and already filed a police report, and notified your lender and your insurance company. After filing a claim with your insurance company, you receive a replacement vehicle. If you don’t let your insurance company know right away that the stolen car was found, then the insurance company takes ownership of your vehicle.
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Should the police recover your car, they would contact you. If the insurer is now the owner, the police will reach out directly to them. Either way, the car will be held in the police department’s impound lot for safekeeping until the rightful owner claims it.
What happens if the insurance paid for your stolen car that is found?
As mentioned, let’s say you already filed the claim, and the insurance company provided a payout or a new set of wheels to replace your stolen ride. In that case, the insurance company would officially take ownership of the car. If the car is still in good condition, then they can sell it.
Here’s the kicker: most of the time, insurance companies won’t change the title to their name. Why’s that? In case the car never gets recovered, they wouldn’t have jumped through the hoops of transferring ownership and paying title transfer fees.
If that’s the situation, and the police found the car, they’ll reach out to the registered owner, which is you. Here’s the tricky part. If the insurance company doesn’t know the car was found—because nobody informed them of the change—it might go under the radar.
What happens if my car is recovered during the claims process?
If you’re in the middle of filing your claim and your stolen car gets recovered, notify your insurance company right away. If you’ve financed or leased your car, then you’ll need to report the stolen car to the leasing or financing company. The insurer will pay the claim to the company, and you won’t be on the hook for making further payments.
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Instead of submitting a claim for a car theft, you can use your comprehensive policy to cover any repairs. For instance, if your car is found and the transmission is stolen, or the windows are broken into, the comprehensive policy can foot the bill.
Liability insurance doesn’t cover a claim for a stolen car. Comprehensive coverage will. Comprehensive coverage will cover damage to your car for incidents other than collisions, such as a run-in with animals, theft, repairs and fallen objects. When you file a claim, comprehensive coverage would cover the value of the car in case repairs are needed, or if your car is stolen and never found.
While there’s a chance your stolen car might be recovered, it might be damaged or suffer vandalism. The average cost of damage and vandalism for a stolen car is $1,490.
If your car has incurred significant damages and is declared a total loss, your insurance company would pay the actual cash value of your car.
Let’s say items are stolen in your car. If so, your personal belongings generally aren’t covered by a car insurance policy. However, a renter’s insurance or homeowners insurance policy can help you cover items stolen in your car.
Does a car lose value after being stolen?
If your car is stolen and recovered, it might lose value. How much value is lost all depends on the specific situation.
If the car has been damaged and considered a total loss by your insurer, they will take repossession of the car. It’s then considered a salvage title car. A car that has been stolen with a salvage or total loss title is usually worth 20% to 40% less than the price of an unsalvaged car with a clean title. If a car dealership puts a “theft-recovered” stamp or decal on the car window, the price tag of the car can drop significantly.
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Besides damages to your car, your car could decrease simply in value based on mileage. The higher the mileage, the lower the value.
Who owns the items inside a recovered vehicle?
If the items in your car are recovered, and the car insurance has already filed your claim and the insurance company now is the owner, those personal belongings inside the vehicle are not the property of the auto insurance company.
As mentioned, if any items were stolen, then your car insurance carrier wouldn’t cover those lost belongings. Lost belongings are normally covered by renters or homeowners insurance policies. So, if your homeowners insurance has compensated you for loss of belongings inside the vehicle, you may want to check the fine print of your policy or simply call them and let them know that the property was recovered.
Frequently asked questions (FAQs)
What happens once the police recover your stolen car?
When police locate your stolen vehicle, they’ll input your vehicle identification number (VIN) and license plate into the stolen vehicle system (SVS) and National Crime Information Center (NCIC). The police department will try to match the information to a name in the system. If a match is made as the registered owner of the vehicle, the police department will reach out to you. A pickup time and location will be scheduled, such as at the impound or police station.
Should I keep my recovered stolen car?
It depends on where your insurance company is at with the comprehensive claims process. If the claim has been submitted and not processed, you retain ownership of the car. If the claim has already gone through and you’ve received a payout, then the insurance company now owns the car. What happens when your car is stolen then found years later?
Should years pass before your car is found, then your car insurance company fully owns it. In that case, if they have already transferred the title to them, the insurance company can sell it if it’s in suitable condition.
Does having your car stolen affect your no claims discount?
While it’s not your fault, filing a claim when your car is stolen doesn’t impact your no-claims discount. Further, having your car stolen will most likely raise your insurance premiums, but not significantly.
Source: https://t-tees.com
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