What Do You Do When Your Stolen Vehicle Is Recovered After Insurance Has Paid It Off?

If your car is stolen and your insurance company pays you for the loss, you are no longer the car's owner. As a condition for paying you for the car the insurance company typically requires that you sign the car title over to the company. However, each insurance company is different and has different policies so ask your insurance company if you have a specific question about policy details.

Stolen Car

If your car is stolen and you have comprehensive auto insurance, your insurance company will typically reimburse you for the stolen vehicle. When the company does this and for how much depends on the terms of your insurance agreement. In general, your insurance company will reimburse you for the fair market value of the car. However, insurance companies typically delay payment for at least 30 days to give law enforcement a chance to recover the stolen vehicle, according to CompuQuotes.

Claim

Once your car has been stolen and you've filed a claim with your insurance carrier and they've agreed to pay, you typically no longer own the car. If you file a claim with your insurance company for a stolen car, the company will typically require you to sign ownership of the car over to the company before it reimburses you for the loss. Once you take the money and sign over the car to the insurance company, you no longer have an ownership interest in the vehicle.

Recovery

If your insurance company has already paid you for a stolen car and the car is later recovered, there is not much you can do. The company is now the legal owner of the car. You may be able to purchase the car back from the insurance company, but the company generally does not have to return it to you. You can talk to your insurance company and ask if you can buy the car back for the same amount as the company paid you for the loss, though this may not always be possible.

Terms

Auto insurance policies can differ significantly. It's always best to review the terms of your insurance before entering into an agreement with your insurance carrier. If you have questions about what happens in the case of your car getting stolen, make sure you review any stolen vehicle clauses and talk to your insurance company about the procedures you have to go through if this happens.