My car was stolen back in November, and while my insurance covered most of the costs, I’m still left with a balance of about $1,800 that I owe to Capital One. Fortunately, the car has been recovered.
I recently heard from my claims adjuster who informed me that I need to return the vehicle. I asked if it would be possible to have the remaining balance paid off and have the car ownership reinstated in my name. He mentioned that I might have to pay a salvage fee, but I’m unsure what that entails, especially since I’ve been making payments as I can’t afford to buy a car outright.
Since this is my only means of transportation, I’ve been driving it without active coverage. My main questions are: What are the chances that I can keep the car? And if that’s not possible, what steps should I take next? Will the insurance settle my remaining balance now that the car has been found, or am I going to be left in a tough spot?
By the way, I’m with Shelter Insurance. Any advice would be appreciated!
I’m sorry to hear about your situation with the stolen car. The outcome can depend on several factors, including the policies of your insurance company and any state laws that apply.
Likelihood of Keeping the Car: It’s possible to keep your recovered vehicle, but it often comes with conditions. If the insurance company paid off a significant portion, they may have a claim to the vehicle. You would likely need to pay any salvage fees to reclaim ownership. The adjuster should provide you with details on what those costs would be.
Salvage Costs: Salvage costs can vary widely depending on the condition of the vehicle and its value. It’s important to get a clear explanation from your adjuster regarding how much you might have to pay to keep the car.
Paying Off Remaining Balance: If the car is recovered, the insurance may not pay off the remaining balance owed if it’s considered a total loss. Since they have already settled a portion of your claim, you might need to pay the remainder yourself.
Driving Without Coverage: It’s essential to be cautious about driving the car without active insurance coverage, as this can lead to legal issues and additional financial consequences.
Best Course of Action: Stay in close contact with your insurance adjuster for updates. Ask for clarification on all fees and your options. You might also want to consult with a financial advisor or an attorney for guidance, especially regarding any potential liabilities or impacts on your credit from the remaining balance.
While it may seem daunting, communicating clearly with your insurance company and understanding your options will be critical in navigating this situation.