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No, that wouldn't be a reason for claim denial. It may be a reason for them to investigate you for insurance fraud.

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Q: Can the insurance company deny your claim for stolen vehicle if the car payments are behind?
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Can the insurance company find out if your behind on your car payments?

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Yes, you can.If the insurance company does declare the vehicle to be a "total loss" after a short period, payment will be made by them for the value of the vehicle.However, the insurance company considers your bank as the "legal owner" and you as the "registered owner" as you both are owners of the car.Since you bank legally owns the car and has the title, they will insist on paying them first and if there's money left, they'll pay you.That's where your missed payments might catch up with you.


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