My car was stolen, I am in a fix here because my insurance will not cover the car because there was a glitch at the DMV and the registration did not come up in the system. For days the police could not run the tags or the vin because nothing came up.. finally they were able to get the info. Once I got the info the police report was filed (4 days after the theft.). I contacted my insurance to check on my coverage. I found out that the car had gotten lost in the system and so forth insurance was dropped on it. Now that it was back in the system the car cannot be insured because they do not know who has it and what shape it is in.
So my real pickle is this.. if the insurance is not going to cover the car (though they will gladly continue to insure the other car my wife drives) what can I do about my lien? The insurance company filed a claim and closed it.. so will I be prosecuted for not having insurance by my lienholder? I cannot allow them to repo it and quit payments since there is no car to repo, but I certainly CANNOT afford to pay $600 a month to them for a car I do not have and still afford to make another car payment to replace this vehicle so I can get to work. Is there a clause or anything for these situations? Can I work out a deal to refinance the loan or adjust payments to a lesser amount? What are my options here?

I don't know where you live and what the laws are there, but in Ontario, Canada an insurance company cannot cancel your insurance without following certain standards. One of these rules is that they must send you a registered letter letting you know that they are going to cancel your policy.

You may want to speak to a lawyer about this situation. You can probably get a free 1/2 hour consult with one to advise you of your rights.

Good luck!

Didi

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Originally Posted by protoloser

I contacted my insurance to check on my coverage. I found out that the car had gotten lost in the system and so forth insurance was dropped on it.

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Hello proto:

If I paid my insurance, and my company told me that, I'd sue them. I've never heard of anything so stupid in my life.

excon

First sounds like a lot of strange things are happening, first how did the DMV not find the car in their systems, they are in by VIN numbers, in about a dozen computer systems that the police can access in about 3 minutes.

But for the insurance you are required to have insurance on your car, so why did you not have it, it can not be merely forgotten, you pay, so if you were paying and have the cancelled check or the receipt where you were paying, then you can sue them, but the reason why you did not have insurance will be the issue, if the company was at fault, you can sue them, if the agent was at fault, you can sue them. But if you did not pay, if you did not send something back, then you just did not have insurance.

So if you car is stolen and you don't have insurance, you sure bet you are going to have to keep paying that monthly car payment and pay the car off, since even if the car is found, and repo, you still owe the difference and normally a repo car sells for about 1/4 of its value at auction, So unless you can sue and win from the insurance company, just keep making that payment, you don't have a choice.

You best hope is they will find the car and it will still be usable.