What happens if your car gets stolen on finance?

What happens if your car gets stolen on finance?

What happens if your car gets stolen on finance?



If your car gets stolen while you still have outstanding finance on it, you may find yourself in a difficult situation. Not only have you lost your vehicle, but you also have financial obligations to fulfill. In this article, we will explore what happens if your car gets stolen on finance and the steps you can take to navigate this challenging situation.

Reporting the Theft

The first step you should take if your financed car is stolen is to report the theft to the police. This is crucial for several reasons. Firstly, it helps law enforcement authorities in their efforts to recover the stolen vehicle. Secondly, it provides you with an official police report, which you will need when dealing with your insurance company and finance provider.

Insurance Coverage

Having comprehensive insurance coverage is essential when your car is stolen on finance. If you have comprehensive insurance, it should cover the theft of your vehicle. However, it’s important to carefully review your insurance policy to understand the specific terms and conditions related to theft. Some policies may have certain limitations or requirements that need to be met for a successful claim.

When filing an insurance claim for a stolen car, you will typically need to provide the police report, as well as any other documentation requested by your insurance company. It’s crucial to promptly notify your insurance provider about the theft to initiate the claims process.

Finance Provider’s Role

Your finance provider also plays a significant role when your car is stolen on finance. They will need to be informed about the theft and will likely require a copy of the police report. In most cases, you will still be responsible for making your monthly finance payments, even if your car has been stolen.

It’s important to communicate with your finance provider and inform them about the situation. They may be able to provide guidance and support during this challenging time. Some finance providers may offer options such as deferring payments or restructuring the loan to accommodate the loss of the vehicle.

Recovering the Vehicle

While the chances of recovering a stolen vehicle can vary, it’s worth noting that law enforcement agencies do their best to locate and recover stolen cars. If your vehicle is found, it will typically be returned to you after the necessary investigations have been conducted. However, the condition of the vehicle may vary, and it’s possible that it could be damaged or stripped of valuable parts.

If your car is recovered, it’s important to inform both your insurance company and finance provider. They will need to reassess the situation and make any necessary adjustments to your insurance claim or finance agreement.

Financial Obligations

Even if your car is stolen on finance and not recovered, you are still responsible for fulfilling your financial obligations. This means continuing to make your monthly payments to the finance provider until the loan is paid off. Failing to make these payments can have serious consequences, including damage to your credit score and potential legal action by the finance provider.

If you are facing financial difficulties due to the theft, it’s crucial to communicate with your finance provider and explore possible solutions. They may be able to offer assistance or provide options to help you manage the situation.


If your car gets stolen while you still have outstanding finance, it can be a distressing and challenging experience. However, by promptly reporting the theft to the police, notifying your insurance provider and finance company, and fulfilling your financial obligations, you can navigate this situation more effectively. Remember to review your insurance policy and communicate openly with all relevant parties to ensure a smoother process.


– Insurance Information Institute: www.iii.org
– Federal Trade Commission: www.ftc.gov
– Citizens Advice: www.citizensadvice.org.uk