Car theft is an unfortunate situation that many people find themselves faced with. If your car is stolen and you have a title loan, unfortunately you are still legally obligated to pay the remaining loan amount.
Car title loans are secure forms of funding that use the car title as collateral. If the vehicle corresponding with that collateral was stolen, your financial situation does not change. However, there are steps you can take that could help during this unexpected emergency.
File a Police Report if Your Car is Stolen with a Title Loan
As soon as you find out the car you used to get a title loan was stolen, contact local law enforcement. The longer you wait to make a report, the lower your chances of recovering the car.
Most people file a police report over the phone or in person. Although depending on your state, you may have the option of filing a police report online.
It will be helpful to police if you include the following details about your car:
- Make and model
- Vehicle year
- License plate number
- Vehicle identification number
- Color
- Distinctive features (dents, decals, etc.)
After completing the police report for your stolen car, ask for a personal copy for your records. You will be asked for contact information in case there are any updates on your stolen car.
File an Insurance Claim if Your Car is Stolen with a Title Loan
After you have filed a police report about your stolen car with a title loan, it is advised that you contact your insurance company and report the theft.
If you have comprehensive car insurance, you could get financial assistance to cover the stolen car. The amount you could get is dependent on the actual cash value (ACV) of your stolen car. If you don’t have comprehensive insurance, you should still contact your insurance agent about the stolen car.
You should have the following information ready to provide to an insurance agent:
- Car details and description (make, model, condition, etc.)
- Contact information of your leasing company (if applicable)
- List of personal items in the stolen car
- Location of all the car keys
Inform the insurance agent that you have a car title on the stolen car. They may ask to see the car title, which is likely in the hands of the lender.
If your car insurance plan includes rental reimbursement coverage, you could potentially get the cost of a rental car covered. Make sure that you ask the car insurance agent how long benefits will last and what your coverage limit is.
Contact Your Title Loan Agent if Your Car is Stolen
After you have filed a police report and talked to your car insurance agent, it’s time to contact your title loan company. Inform them of the police report number and the claim number of the car insurance company.
You could get a check directly from your car insurance company worth the ACV of your car. You could then use this money to help cover the cost of the remaining title loan amount.
Although if you inform the car insurance agent about your title loan when you make a claim about your stolen car, they may issue the check directly to the lienholder. This can be very convenient, as it removes any work on your end.
The ACV of your car may not cover the entirety of the remaining title loan amount, but it may be enough to lessen the financial burden of repayment.
What if My Car is Stolen but I Don’t Have Car Insurance?
If you don’t have comprehensive car insurance, or any car insurance, you may have to pay back your title loan without financial assistance. This can be hard, as you may have lost your main mode of transportation and you still have to continue making your monthly title loan payments.
To help ease the financial burden, you could try and work a side job for a little bit while the police investigate. You may even earn enough to help fund the price of a new used car! There are used cars on the market that cost less than $5,000!
These are some potential side jobs you could do to earn some financial relief when your car is stolen:
- Freelancing: If you have a writing, graphic design, or editing background, try freelancing on a website such as Upwork. You could choose the type of job you want to do and set your own hourly price.
- Selling Online: If you have any clothing or accessories you don’t want, try selling them online through sites such as Poshmark or eBay. You could also sell other items, such as collectibles, electronics, books, household items, and so much more!
- Babysitting: If you are good with kids, you could ask friends and family if you could babysit for them. Parents of newborns are sure to take you up on the offer so they can get some much needed rest!
- Renting a Room: If you have an extra room in your home orapartment, you could rent it out on Airbnb! You could set your own price and the max amount of time you want guests to stay.
- Completing Online Surveys: If you have the time, try completing some online surveys for cash or gift cards! You will be asked to complete reviews on stores, services, and more.
- Dog Walking: If you like dogs, you could sign up for sites such as Rover to become a dog walker! You could also sign up as a house sitter for dogs!
- Selling Handmade Goods: If you are creative in any way, try and make a profit using that talent.You could sell paintings, drawings, and other handmade goods online through websites such as Etsy.
How to Protect Your Car in the Future from Getting Stolen?
Getting a car stolen is sadly a common occurrence. According to FBI statistics, about $6.4 billion was lost to stolen motor vehicles in 2019 and the rate of stolen motor vehicles that year was 219.9 per 100,000 people.
To help prevent your car from getting stolen in the future, you could:
- Install a car alarm system or activate it every time you park
- Always keep your doors locked (even while driving)
- Install a GPS system
- Keep your windows firmly closed
- Hide any valuables in the trunk or glove compartment
- Park in public spaces with more foot traffic
- Don’t leave your car on and unattended
There are instances when car thieves may outmaneuver drivers through planned tactics. For example, the bump and rob is a tactic that involves hitting a car from the rear with another car and then stealing it once a driver gets out to check the damage.
If you are ever involved in an accident and you feel unsafe about a situation, call police and drive to a populated area.
If My Car is Stolen with a Title Loan, Will I Get it Back?
While it is a good idea to maintain optimism if your car is stolen, understand that it is also a possibility that you may not get your car with a title loan back. It is estimated that only 1 in 5 stolen cars are recovered, and if they are recovered, they are almost always returned damaged.
The types of cars that are stolen are not always high priced luxury brands, most of the time they are common makes and models such as the Honda Civic. The reason for this is that most stolen cars are taken to chop shops that break the car down for parts which then get sold individually.
What to Do if Your Car is Stolen with a ChoiceCash Title Loan?
If you have a ChoiceCash Title Loan and your car is stolen, contact your title loan agent once you file a police report and contact your car insurance agent.
While you are still expected to repay the remaining title loan amount, if you need to, you could ask your title loan agent about payment options that may be available to you.1
Getting a car stolen with a title loan is an unfortunate situation, but you can get through it. Call 855-422-7402 to speak with a car title loan agent about your situation.