Motorcycle Stolen with no insurance what are my options? (if any)?

  • by Kenroy
  • Oct 21,2017
  • 12 answers

A year ago I did a 3 year finance option on a 2016 GSXR-750 and today I walked out side to find that my motorcycle was gone with no traces of where it went. As of now all I have done is spread the word on social media to get some eyes out looking for it and filled a police report. As for insurance I had insurance on by bike for the first few months. In addition, I bought Gap insurance which was included in the monthly payment. I cancelled the insurance because the insurance for a 19 y/o M on a super sport was very expensive and i wanted to put the extra money on the principal. The gap insurance was still paid every month but without insurance. now that my bike is stolen and my only leg to stand on is the gap insurance (which is a 1 in a million shot a best) is there anything i can do to get this taken care of. At best i'd like to get the loan settled so i'm not paying for a bike someone else is riding.


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Insurance Answers (12)

Beverly S 6 months ago

Gap only covers the difference from what your regular insurance pays the the loan balance. Since you have no regular insurance it won't pay. Hopefully you will find your bike and get insurance! Good luck!

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mbrcatz 6 months ago

Gap insurance doesn't pay if you let the primary insurance lapse. I'd suggest making "reward" notices and posting them up around town. Or, getting a second job.

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H. Marie 6 months ago

you don't have any
you reported to the police, and they may or may not be able to find it for you, you can certainly make every effort you can on your own to find it but you are obligated to pay for any loan you had on it even while you don't have it
cancelling the insurance was probably the worst thing you could have done, without insurance the loss is entirely yours

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Casey Y 6 months ago

You are now learning a very hard lesson about why you buy insurance....you have no coverage and the gap company may pay nothing either, since that policy would require you to have underlying coverage. They may pay the difference between the Actual Cash Value of the bike and the loan, but I bet they are not required to do so.
You have another headache on your hands too. By not maintaining insurance on the financed asset...you violated the terms of that contract. I hope you don't need another car or bike loan any time soon...you probably wont get it.

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Rick 6 months ago

Speaking of US
Cancelling the insurance was illegal,
GAP only pays the difference between value and amount owed
You have no recourse but to pay the loan

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Insurance Pickle.com 6 months ago

Pay off the loan and move on. Nothing you can do other than that.

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exactduke 6 months ago

Ouch, you've got a 10k bike on payments, and you don't know you should be carrying insurance?? You're SOL. You keep making your payments.
Motorcycles are easily stolen. Two or three guys can throw one into the back of a pick-up. Seems had to believe that this would not have occurred to you.

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lucy 6 months ago

UGH;;;;;;;;;;;; You are S O L.
GAP pays (only) when you have insurance and it is (not) enough if the vehicle is stolen or if it is considered a total loss and then pays off your loan, if the value is (less) than what you owed.
Now, if you had kept the insurance and cancelled the GAP would be in better shape, since (even) if they don’t find, then you would only owe the (balance/gap) of your loan, whereas now, you owe the ENTIRE loan, if your bike is not found.
Now, depending (if) your lender was aware that you dropped the insurance. If they found out, then they could have added (forced) insurance, which means that your payments would have gone up a (lot) to cover their investment. If so, then the “forced” insurance pays (if) MC not found, then your GAP takes over to cover the difference.
So for now, keep quiet with your lender, since once they find out that the MC was stolen, and (if) not found, then they will sue you for the (entire) balance of the loan.
You did everything right, which is to file a police report (required) with insurance. But the general rule is that insurance (waits) 30 days to see if they can find, and (if) found usually due to an accident, that most will leave the scene (hit/run). But if not found, then usually then (parted out) so never found, thus you have a loan and no MC.
My suggestion is to talk to a lawyer for your legal options, which means a payment plan and not getting sued.
Sorry for the bad news, but as a 19 year old, could understand, that you may not have not known the consequences.
Good luck.

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curtisports2 6 months ago

Nope. No insurance, nothing you can do. And I think if you read the gap policy, it will say that the policy is only valid as long as you have primary insurance, which you didn't have. The best you could get is a refund of any premiums paid for the gap insurance after you let the primary insurance lapse.
I think if you read the loan documents, you will find that you are required to carry insurance while the loan is still unpaid. If that's in the loan documents, the lender has the right to call the loan due and payable at once, and if you can't pay it off, they can take it. And since there is no more bike to take - insurance would have paid that value - then you'll have a credit-ruining judgment against you. I would keep hoping that the lender doesn't find out the bike is gone, and keep on making those payments for something someone else is riding, and I would also turn in the plates. Because if you don't, if the bike remains registered in your name with the state and it is involved in an accident, you just might be sued on top of everything else, and with no insurance, you have no insurance company lawyer to defend you. You're on you're own.
I once owned a bike. I sold it to my wife's brother, signed over the registration to him. I stupidly trusted that he would turn in the plates and put the bike in his name. He never did. He kept it at his buddy's auto paint shop. His buddy allowed some chick he had the hots for to ride it and she wrecked it and broke her leg. I got sued for her medical bills and pain and suffering. My insurance company, correctly, though I was young at the time and too angry to understand why, denied to defend me, because I had canceled the insurance on the bike. I thought my umbrella policy would protect me, but I didn't know that umbrella insurance only works if the underlying asset is insured.
So, I had to hire a lawyer, because this wasn't small claims court. I did all of the work to get myself out of it, but the lawyer had to present it, and the judge dismissed the suit against me, but not against the buddy who let her ride the bike, or the owner of the property where this all took place (who had deep pockets and who probably was insured). I got out of it by getting my wife's brother to make a signed and notarized affidavit acknowledging that I had sold him the bike, that he was the owner and that he had never registered it with the state to remove me from the records. He never got sued, either.
But you could, as long as the bike is still registered to you. The police report may not be enough. You should find out if it is.

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Steve D 6 months ago

You pay the loan. Your loan contained the clause that you had to carry insurance which you failed to do. You are still liable for the loan and your insurance company will not pay since you had no insurance (your choice, you pay the consequences - if you couldn't afford the insurance, you couldn't afford the bike). So, yes, you are paying for a bike someone else is riding and failure to pay means that the lender will report the debt to the credit bureaus ruining your credit and piling insult onto injury. And since it was a choice for you to drop the insurance, the company can also sue you for payment and said judgment will also go on your credit report which makes it almost an impossibility to get a loan for the next 7 - 10 years. And you are more likely correct that your GAP insurance will not cover you - GAP is there in case you get in an accident and your insurance won't cover the Gap between what is owed and what the bike is worth.

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A Hunch 6 months ago

The cheap turns out expensive.
Gap insurance covers the "gap" in insurance.
There is no gap between insurance and the cost of the vehicle. Since you didn't have motorcycle insurance, there is no "gap".
Sorry, but your option is to pay the loan as agreed at this point or to have horrible credit / judgement against you for quite some time.

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Ricki 6 months ago

I'm surprised the lender didn't put insurance in place when you cancelled it to protect their interest.
No insurance it's your loss.

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