Comprehensive car insurance can protect drivers when their vehicle is stolen. But what happens when a car is ultimately recovered after the insured has already had their total loss claim approved and started financing a replacement vehicle?
Josh Peresta found himself in this predicament when he purchased a new Audi A4 to replace his stolen Infiniti Q50, just to have it found — leaving him on the hook for two auto loans and insurance premiums.
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Peresta’s car was stolen after leaving it parked at the Atlanta Hartsfield-Jackson International Airport while on a business trip in June — one of 161 reported thefts from the lot so far this year. After filing a claim with his insurer, Geico, the company agreed to write the car off as a total loss of $35,000.
Not long after the agreement was made, Peresta’s car was found near Orlando by Florida State Patrol and Geico canceled the settlement. Naturally, Peresta disputed this decision for more than two months before contacting Atlanta News First Investigates.
After the ANF intervention, Geico quickly honored its original decision, took possession of the stolen Infiniti and even increased the settlement payment to account for the additional car payments he had to make and the car’s actual value, reaching a grand total of $39,500. Although his claim ultimately ended up being successful, a stressful situation like this can happen to anyone filing a stolen car claim — but it isn’t an insurmountable situation.
Rising car theft and comprehensive coverage
With a projected 296.6 million registered vehicles on the road by the end of 2024, it’s no wonder vehicle theft is so prevalent across the United States.
According to data from the National Insurance Crime Bureau, more than 1 million cars are stolen every year, with the most thefts taking place in California, Texas, Florida and Washington. In Atlanta, car thefts at the airport are also on the rise. Only 35 vehicles were reported stolen in the parking lot and surrounding areas in 2023 compared to 161 in 2024 — an increase of 360%.
When a car is stolen, insurance companies will help those with comprehensive coverage in one of two ways. If the vehicle is ultimately recovered by law enforcement, the insurance company can choose to pay for the damages incurred to the vehicle. But if the damages are too great or the car is never recovered, the insurance company can choose to write it off as a total loss.
What’s key to note is that insurers may wait to initiate the pay out and close the claim (usually about a month), as there is always a chance the car will be recovered. Though Peresta wasted no time getting back on the road in a new vehicle, those in a similar situation may want to practice patience before financing a new car.
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How to handle a total loss claim, even when it goes awry
If your vehicle is stolen, you first need to call the police and file a stolen vehicle report. Only then can you file an insurance claim. During the process, the company may request several pieces of information from you, including where the additional keys were, who had access to the vehicle and any details about the car’s trim and aftermarket accessories.
You’ll also want to update your insurer if the vehicle is found during the claims process. This can allow your claims manager to assess if the vehicle can be repaired and returned to you instead of being written off as a total loss, which can save time and money.
The next step depends on how the insurance company decides to move forward. If it decides it’s a total loss, it’ll take the keys, vehicle and finalize a settlement. Peresta’s case was unique in that the car was recovered in working or repairable condition, though they still granted it a total loss given the order of events. But who’s to say if everyone’s insurer will be as accommodating?
In any case, if a stolen vehicle is found and the insurance company decides to change their position, ANF’s Harry Samler says the last step would be to file a complaint with the insurance commissioner’s office to escalate the claim.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
