Facts & Statistics
Often when we think of a stolen car, what comes to mind is a late night car jacking or the car being taken off a street or out of a parking lot. But, few people think of what happens when a car is stolen by the finance company. Can they report the car stolen? The answer is, yes, they can. The process is often complex and not as quick as a regular police report, but it is possible.
According to the National Insurance Crime Bureau, about 700,000 cars are stolen every year, which is about one every 45 seconds. Of those, only 66.9% are recovered. However, of those that are recovered, only 35% are recovered in their damaged state.
When a car is stolen by the finance company, it is considered the same as any other vehicle theft. This means that the insurance company, if applicable, will have to cover the car’s estimated value. An insurance company typically will not pay out if the car is stolen unless it is duly reported. This is where the finance company comes into the picture.
Process To Report
The process of reporting a finance company car stolen is as follows:
First, the finance company needs to file a report with their local police or sheriff’s department. This report needs to correctly identify the car’s make, model, and serial number. The finance company must also provide the police with any documentation they have attesting to the ownership of the vehicle, such as the registration paperwork and any paperwork related to the loan or lease agreement.
The police may have additional questions for the finance company in order to properly assess the situation. After the police have completed their investigation, they will provide a copy of their report to the finance company. This document is then sent to the insurance company as proof that the car has been stolen and the finance company has reported it.
Once the car has been identified by the police as stolen, it is placed on a national database of stolen cars. This means that any time an officer runs a car’s license plate or VIN number through their system, the car will be flagged for potential theft.
Recovering Stolen Car
If the car is located, the finance company will work with the police to arrange a release of the car. The police may have additional questions for the finance company when the car is already been located. However, once the car has been verified as legitimate, it is usually released to the finance company.
Once this has happened, the finance company will appraise the car for any damage it has sustained and contact the insurance company to determine what, if any, funds are available for repairing the vehicle. The finance company may also require additional funds from the insurance company in order to fully cover the costs of repairing the car.
Technology and Security
Technology has made it easier to locate stolen cars and to keep them safe from theft. Cars are now equipped with GPS tracking systems that allow law enforcement to find them more quickly and accurately. Additionally, advances in security technologies, such as keyless entry, have made it harder for thieves to access and steal vehicles.
These technologies help to reduce the risks of car theft, which is why they are being used more and more. However, it is important to remember that the best way to protect against car theft is to be cautious and aware of your surroundings.
Damage to Credit Score
If the car is not recovered, the finance company may file a claim with the insurance and have the policy pay for the car. This can have an impact on the consumer’s credit score, as the finance company may have to report both the stolen car and the insurance claim to the credit bureaus.
A bad credit score can have serious implications on a consumer’s ability to obtain financing and other services, so it is important to make sure that the consumer is aware of the risks before they sign up for a car loan or lease agreement.
The Legal Implications
When it comes to stolen cars, there are also legal implications. If a car is stolen, the owner may also be charged with criminal negligence or fraud in some cases. This is why it is important to be diligent in following up with the police when a car is reported stolen.
Furthermore, if a car is stolen and it is determined that the owner was not responsible, they may be able to pursue a civil case against the finance company for any financial losses they may have incurred. However, this is usually a difficult process and requires the assistance of a qualified attorney.
Alternatives for Owners
For those who are worried about the risk of their car being stolen by the finance company, there are some alternatives. One option is for the consumer to purchase a protection plan from the finance company or from an independent company. This type of plan offers protection from theft, which can be beneficial to consumers who are particularly worried about this risk.
These plans often provide coverage for any costs associated with recovering a stolen car and may even provide coverage for the consumer’s personal property that was in the car at the time of the theft. This can be a great option for consumers who are worried about the possibility of having their cars stolen, as it can provide some additional peace of mind.
Insurance Coverage
When it comes to insurance coverage, it is important to make sure that the policy covers any damage or theft of the vehicle. While the finance company may provide some coverage, it is often limited and may not be enough to cover the full value of the car. It is also important to make sure that the policy covers the theft of the vehicle itself, as well as any personal property in the car at the time of the theft.
By having adequate insurance coverage, consumers can make sure that they are protected if their car is stolen by the finance company. This can be a great peace of mind and can prevent a lot of headaches in the event of a theft.
Preventative Measures
When it comes to preventing a car from being stolen by the finance company, there are a few measures that can help. It is important to make sure that all of the paperwork related to the loan or lease agreement is kept up to date. This includes providing the address at which the vehicle is being stored.
Additionally, it is important to make sure that the car is regularly serviced and inspected, as well as regularly insured. This can help to keep the car in good condition, which can make it more difficult for thieves to access the vehicle. Furthermore, making sure to keep the car in a well-lit and secure area can also help to deter potential thieves.
Secure Financing Options
One other way to make sure that a car is not stolen by the finance company is to secure financing options that offer protection against theft. These options include things like GAP Insurance, which covers the difference between the car’s actual value and the amount due on the loan or lease agreement.
This can help to make sure that the consumer is not held responsible for any difference between the two amounts, in the event that the car is stolen. Additionally, some lenders may offer additional coverage in the form of theft coverage or personal property coverage. It is important to check with the lender to see what types of additional coverage they may offer.
Knowing the Risks
It is important for consumers to know the risks of a car being stolen by the finance company. There are steps that can be taken to reduce the risk of theft, such as keeping the car in a secure area and making sure to keep up with all of the paperwork related to the loan or lease agreement.
Additionally, there are financing options available that offer additional protection, such as GAP insurance or theft coverage. Lastly, it is important to make sure to purchase adequate insurance coverage. This can help to make sure that the consumer is not held liable for any losses incurred due to a car being stolen.
