Quick Answer: When insurance won’t pay for motorcycle theft, it typically means the policy only included liability coverage rather than comprehensive coverage, which is required for theft protection. The borrower remains liable for the full loan amount even after the motorcycle is stolen, and stopping payments can lead to lawsuits and collection actions.
“Dear Steve,
I bought my first bike back in 2007. I was moving from the east coast of Florida to Gainesville so I went in to get the bike covered with insurance.
This was my first time getting insurance by myself for anything, I was 19/20 at the time. My bike was stolen in Gainesville and when I make the call to the insurance company they say theft isn’t covered on my policy.
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
And theft being the only thing I was worried about covering in the first place, I had definitely stated that is what I wanted. So after a couple months I stop making payments and the lien has been tossed around to several collection agencies over the years trying to to contact me. I have not made a payment since.
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I have been contacted recently by a public servant trying to find me for a court hearing. Do I contact them and try to settle? Or do I take the judgement against me? I’d really appreciate some advice here. Thanks!
Kim”
Dear Kim,
Being a fellow motorcycle rider I can feel the pain of losing your ride.
It is possible that your insurance coverage was liability only. Theft would only be covered if your policy also included comprehensive coverage.
It sounds a little late to try to go back and figure that out now so let’s move forward.
When you defaulted on the motorcycle loan it created a liability for you. It sounds like they did not sue you in the past for the debt you owed and you might have been recently sued.
What we lack here is additional information to help clarify what exactly is going on. What I would suggest is that you pull a consolidated credit report and let’s see what is listed about this old account and if there is something listed in the public records section of your credit report to give us a clue if you’ve already been sued.
In Florida the statute of limitations is five years for written contracts but it is unclear without a review by an attorney that is licensed in your state if the statute of limitations has already expired and you can’t be sued.
Please post your responses and follow-up messages to me on this in the comments section below.
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