My car has been stolen about 7 days ago and still has yet been recovered. My insurance company wants to wait 30 days before paying out. I want to know if I can keep my title even though the car has not been recovered?
It took me 5 months to find my GC8 coupe and I had to go to the East Coast from CA to buy my GC. At least when the car does get recovered I will already have the car paid off and can put a STI motor in :)
Sure. Don't accept the insurance payment. What do you think they are paying for? Just like when they total your car, they are buying your car so it is then their property. If they pay you for the stolen car, it is their property if found. You have the title now. If you don't accept their payment for purchase of the vehicle, you still keep the title. You want them to pay and you get to keep the car? When totalled, you can choose to keep the car but they will deduct the salvage value (i.e., they then pay only for the loss in current value of the car). For a stolen car, they are paying the value of your car and there is nothing for you to keep. What, are you going to give them back their payment should the car ever show up? I really doubt they are setup to pay up front for a car that they won't get to keep if found.
Hi,
From my experience (personal vehicle stolen, co-workers' cars stolen), I'd suggest you take the money, sign over the title and go find another car.
After a week I doubt you could recognize what's left of your car if they parked it right on your driveway!
Rick
I don't how this might work out, since my car was recovered the day after it was stolen and declared a total loss after way too much stuff got stripped. My insurance adjuster told me that they probably couldn't get in back for the price the car was worth. They also said that the payout was probably more than I could have sold the car.
I think you have to wait until it gets recovered or the insurance company declares it not recovered.
Excuse me for asking a potentially insulting question, but what would stop the insurance company from thinking that you stashed the car in a friend's garage and faked the police report?
I'd not go there if I were you...
You know - I'm not even sure exactly what the original question is. If it's not recovered before the insurance company decides to declare it a total loss, then you have to turn over the title as part of the settlement, unless you negotiate something else. Assuming the settlement is accepted and it is recovered after that point, it belongs to the insurance company.
There's no way the insurance company is going to pay out for an unrecovered car unless the title is turned over.
It might be legal for you to buy your car back at a salvage auction. I'd be wary that the insurance company doesn't think it's a scam to get their payout while getting the car back at a reduced price.
The reason why I want to keep the salvage is because in Washington State, buying or even finding a good clean RS25 coupe is hard. I had to go to the east coast to buy mine (not really was there for work and found one at a very cheap price).
Anyways I put way too much money into it already and if the car does get recovered I don't mind having just a shell.
Also I didn't get to transfer the title into my name yet. So I don't know if they will pay me or my lein holder or the original title holder.
I am pretty sure the lien holder gets paid first as they usually hold the title. Normally the lien holder is listed on the insurance policy. They own the car until they are paid in full.
Blair
Hi,
I'd guess most states have uniform laws on this. Here in California, the lien holder (who also holds title) gets the first payment, then the registered owner "gets the crumbs" if any are left after the lien's satisfied. Title then transfers from the lienholder to the insurance company. In this case the R/O is out in the cold for all practical purposes. If the R/O also holds title (no liens), he has to transfer it to the ins. co. to get paid--at least that's how it was when my vehicle was stolen. I doubt it's changed.
Rick
Rick Courtright wrote in news: snipped-for-privacy@iname.com:
That's the way it works here in Wisconsin as well. The insurance co. pays out fair market value to the lien holder. If there's anything left after the lien is satisfied the lien holder cuts a check to the R/O. Sometimes the loan is structured in such a way that for a time the vehicle is depreciating faster than the R/O is reducing the principal. If the vehicle is a total loss at that point the R/O not only doesn't get a dime, they have to finish paying the balance or get their credit rating trashed. :-(
We have an added twist here. If your stolen car is recovered after the insurance company has cut a check and you've signed off on the claim it's usually sold at auction. Licensed buyers only, no retail customers allowed. Lets say you buy a new car for $19,000 with EZ-Credit super low payments and a five year note. The car gets stolen a year later. the lions share of your "low monthly payment" has been covering the interest and you've only managed to knock $2,000 off the principal. Meanwhile the first year depeciation is a killer and fair market value on the car is down to $13,000. You have no wheels and the note holder is telling you that you still owe them $4,000. Not only that, most notes have fine print that says if you can't come up with collateral to cover the balance, the entire amount is due and payable right away.
While you're busy letting the note holder put a lien on your motorcycle and jetski to cover the loan for a car you no longer own, I'm down at the city impound putting a $1,300 bid on a $13,000 car they towed in two months ago. If the insurance company discovers it before the auction closes I might buy it off their lot. If I get it from the impound they sell it on a quit claim form I take down to the DMV where they issue a clean new title in my name with no liens. It may take anything from cutting a key to replacing the drive train before its ready for resale. I'll flip it at a dealer auction for $4,500 to $5,500. If you're really lucky, by the time you're shopping for another car some dealer will be able to offer you one just like you had, right down to the VIN. If you can show him you're already making payments on that car you might get the retail price all the way down to $10,000. Don't bet on it though, most car salesmen put their heart in the freezer when they leave for work in the morning.
It isn't how you play the game, It's knowing what game to play.
Later, Joe
Regardless of all this, I would be very wary that your insurance company is watching what's going on. They are very paranoid about insurance scams. There are cases where owners have arranged to have their cars "stolen" after which accomplices help sell or stash the parts and the owner buys back the recovered shell.
If the car comes back as a shell, there is no way they're going to let you keep the title AND get a monetary settlement. If it's going to cost more to repair it than the value, they car is theirs to sell for salvage, unless you turn down the settlement. Of course you could refuse any settlement, keep the recovered shell and work from there.
I went throught HSBC where they provided me with a car loan but they don't keep the title. I get the hold onto the title, kind of weird. I have dealt with my bank where they hold onto the title and give me the title once the car is paid off.
I am just going to take the money if I get any after they pay off the car. Since I got the loan but never transferred my title I don't know who they will pay. Also it's expensive for me to transfer the title. The DMV wanted something like $1000 for a new title transfer due to out of state and for the amount I bought it.
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