What would happen if your car were stolen and you didn't have auto insurance?

If your car were stolen and you didn't have auto insurance, you would still be responsible for paying off your car loan in full. This is because the loan agreement typically requires you to make payments on the vehicle regardless of its condition or whether you possess it. The lender holds a legal claim to the vehicle, and without insurance to cover the loss, you remain accountable for the outstanding balance.

The other options do not reflect the actual consequences. Compensation from the police is not plausible, as their role is primarily investigative and not financial reimbursement. Lenders do not typically forgive debt related to a stolen vehicle, as they expect repayment based on the original loan agreement. Filing a claim with the dealership would not provide any financial relief since dealerships do not insure vehicles against theft; rather, they sell vehicles. Thus, the requirement to pay off the loan remains, emphasizing the importance of having adequate insurance coverage to protect against such unforeseen events.