Do insurance companies consider a stolen car a total loss?

Question

Stolen car was recovered, but I'm not sure that it may be repairable or if it would be worth it.

Answer 1

A car is considered "totaled" for insurance purposes if the cost to repair it is more than its current value.

Answer 2

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Answer 3

In some states, regardless of the amount of damage, if it was involved in a total theft it is considered a total. Ask your insurance adjuster if it's because of the damage or the state. My co considers a total when damages are around 60% of the vehicle's actual cash value. Hope you have GAP insurance if your loan is upside-down because a total loss offer will likely not be what you expect for your car. If it IS a total and you want to keep the vehicle, you will need to re-register it with the DMV as "salvage." This indicates you chose to keep a vehicle that was considered unrepairable (it'll cost you a couple hundred bucks), so if you were to try and sell it the next person will be aware. Best of luck.

Answer 4

generally they will wait 30 days before paying out the car. after 30 days the insurance company assumes the car will not be recovered. if it is recovered in less then 30 days you may get the car back. but many stolen cars a deemed a total loss due to damage or there use. i.e. if it was stolen and used in a crime even if recovered in a few days, there is little chance they will give you the car back. insurance companies pay the actual cash value (ACV) of the car at the time of the loss. the fair market value of the vehicle at the time of the loss. some states/provinces have laws that require an auto insurance claim to be settled in a time frame. i.e. in Ontario Canada they must settle the claim within 30 days.

Answer 5

The term "total loss" refers to the dollar amount of the damage (also known as the "loss") relative to the value of the car.

In the case of a theft, if the car is not recovered, naturally the amount of the loss IS the value of the car, so naturally, it is a "total loss".

In the case of a recovered theft, the value of the car at the time it is recovered is subtracted from the value of the car before the theft and the amount remaining is the "loss" amount.

If the amount of the loss combined with the value of the car after the loss exceeds the value of the car before the loss occurred, the car will be declared a total loss.

People usually don't consider the fact that the car belongs to them, not to the insurance company. Your insurance company can tell you how much they are going to pay you in the case of a loss, but they cannot tell you whether you can repair your car or not. It's YOUR car, and you can do with your car as you please.

YOUR insurance is nothing more than a financial arrangement you have made by contract (the policy) to help you defray the amount you must pay in the case of a covered event.

In other words, YOU are the one who decides what to do with YOUR property. YOU decide to repair or not to repair. YOU decide what do do with what's left of the car and YOU decide what to do with the money from the insurance company.

You may have already decided (by agreeing to the terms of the insurance policy) that the insurance payment will be made payable to both the shop and yourself, or to the bank and yourself.

An insurer has an obligation to make their check payable to the one with "an insurable interest". In other words, if a shop has already begun repairing it, they'll name the shop on their check. If your car has a lienholder, the check will be made payable to you and the lienholder.

You will often find that things don't go how you want because insurance companies know how to write that policy to cover THEIR butts . . . and you agreed to it when you bought it.

But they are there to protect your interests, just like a good parent won't let their kiddo eat chocolate for breakfast, lunch and dinner.

Answer 6

Was it damaged, stripped, etc? If the car is fine, or only has minor damage, then it will be handled like any other claim- if the cost of the repairs is less than ( on average, 75% of the cars value, varys insurer to insurer) then they will simply pay out the damages minus your deductable. If the damages exceed that threshold, they will declare it a total loss and you can either take the check, or buy back the car for its devalued amount, and pay for it with the check for your loss ( the idea is you keep the difference and fix the car with it)


....this all assumes you have comp coverage and your policy is in good standing

Answer 7

If the car is not recovered, yes it is a total loss. If the damages done to the recovered vehicle as a result of the theft are 75-80% of the Actual Cash Value (may vary depending on where you are, the company, etc) then it is a total. If that's not the case, then it is repairable, and the company won't total it just because you want to.

You'd have to ask them- talk to the adjuster after the vehicle is appraised.

Answer 8

Depends, they will send out an adjuster to evaluate the damage if it is more than the car is worth they will total it. The real problem is they probaly will not give you replacement value. you can end up not getting enough to even pay it off.