If someone steals your car and you still owe money on the loan or lease, your comprehensive insurance will cover the car’s actual cash value, or how much it was worth right before the accident. If you owe more than the vehicle is worth, you can use gap insurance to pay the difference.
Types of Insurance That Cover Stolen Cars
Comprehensive insurance covers your stolen vehicle’s value, minus your deductible. If you only have comprehensive insurance without gap coverage, you will be responsible for paying any remaining balance that exists after your insurer pays for the claim.
Many financed vehicles are required to have gap insurance. If you owe more than your car was worth, gap insurance will pay the remaining balance directly to your financier, and may even cover your comprehensive deductible, depending on the details of your policy.
If you have neither comprehensive insurance nor gap coverage, there isn’t much you can do about a stolen financed vehicle. You will not have any type of insurance to cover the vehicle’s actual cash value or your remaining loan or lease balance.
To learn more, check out WalletHub’s guides to gap insurance and comprehensive coverage.
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