Could a person actually profit if their car is stolen?
Bob is a Corvette enthusiast. One day, his Corvette is stolen.
He contacts the police to report the car stolen, then files an insurance claim, and he gets his insurance check for the stolen car.
Bob uses the insurance money to get a replacement Corvette.
But a few days after getting a new Corvette, the phone rings. It's the police calling to say they found his car and he can come pick it up.
Did Bob just get two Corvettes for the price of one?
- 7 months ago
I don’t think so
- CathyLv 47 months ago
If someone buys a used car at less than the book value the insurance company will pay the book value when it is stolen.
- babyboomer1001Lv 77 months ago
He should be returning the money that he is no longer entitled to.Source(s): Certified Paralegal, with 25+ years' experience.
- StephenWeinsteinLv 77 months ago
No. Once the insurance company gives him the check for the value of the car, they own the stolen car. It is no longer his car. If the police find it, then the insurance gets to pick up the car. Bob can never have it again unless he buys it back from the insurance company.
He would profit some however, because it would have a salvage title, so it would be worth less.
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- lucyLv 77 months ago
Insurance lesson 101.
The most common insurance scams are when your vehicle burns or is stolen. Usually after a claim is filed, then it is handled by the SIU (Special Investigated Unit), who will investigate this claim thoroughly.
With theft claims, there is a 30 day waiting period to allow the insurance to find your car. When/if found, then in most cases, will be from an accident, and the person who stole the car, many times will flee the scene. If found, then insurance will pay for the damages to your car, and you get your vehicle back after fixed.
While waiting the 30 days, you will most likely have to provide your phone records and texts, (plus) your financial records, since with many thefts, they can't afford the car payments, thus want out of the loan. In other words, will have to verify that you had (nothing) to do with the theft.
Now if not found after 30 days and they believe you had nothing to do with the theft, then insurance pays you the ACV of the vehicle, or to the lender if you have a loan. But before they do this, then you have to sign off your title to the insurance company, who then becomes the owner of the vehicle if (ever) found in the future.
This is no different than having an accident and the repairs are too much, thus considered a total loss, thus insurance pays you the ACV, then takes the car (unrepaired) and then sells to a salvage yard.Source(s): retired auto adjuster
- steveLv 67 months ago
The original one now belongs to the insurance company.
I presume when the theft was reported to the police the insurance companies details were also given. So if the Police are doing their job properly they will let the insurance company know the car had been found.
If they had paid out then the new car is Bob's but the recovered one is the Insurers.
So yes he has profited as he has got a new possibly better car, depending on what he chose to buy as a replacement, but no he hasn't got two cars as a result.
The found car will be sold at auction. Bob could find out where the auction is and bid for it as it will be sold at a fraction of it's worth.
- BruceLv 77 months ago
As soon as he cashes the check, the insurance company owns the stolen car. He would have to purchase the car back from the insurance company if he wants it.
- curtisports2Lv 77 months ago
No. He has to pay the insurance company back. If the car has been damaged, he has to work out the damage coverage with a claims adjuster and the insurance company to repair the damage. He keeps that and pays the rest back to the company.
Or, he can tell the insurance company the car is theirs and he keeps what they paid him.
If it's a vintage Corvette, he's going to come out a loser unless he bought a special vintage car policy that pays for collector value and not book value.
- 7 months ago
In general, when an insurance company pays the value of a stolen car, they take title to the stolen car.
- Badge 203Lv 47 months ago
The investigation would take more than a day or two, and if the car was located, Bob (AKA YOU) would have to give the recovered car back to the insurance company because they owed it as soon as they paid the claim
And Bob (AKA YOU) would be investigated for insurance fraud