My stolen car was found after insurance already paid me for it — but now I want to buy it back. Is it worth it or should I just get another car?

A week later, Stella received word from law enforcement that her car had been found. She contacted the tow yard to let them know that the vehicle was hers, had been stolen and that her insurance company now had the title, but that she was going to look into buying back the car.

Now, Stella isn’t sure how to proceed. She needs to find out if she can get the car back, whether she can get a title and insurance for it and what happens to her insurance payout.

Can you buy back a stolen car

Stella’s insurance has paid out her claim, so the car is now their property — even if the process of transferring the title, which can take several weeks, hasn’t yet been completed. Nevertheless, it’s important that she immediately contacts her insurance company and lets them know the car has been recovered. (1)

As the car is the property of the insurance company, it has the right to sell or scrap it. However, some insurers may offer the previous owner the option to buy back the car.

If her insurer will let her buy back the car, Stella will likely be dealing with a salvage title. This means that Stella will have to have the car repaired, if needed, and it will have to pass a state inspection in order to obtain a rebuilt title and be insurable again. However, rules around this vary from state to state. (2)

For example, in Massachusetts, you would apply for a recovered theft title after your vehicle passed a salvage inspection. You’d also need to submit an application and the current salvage repairable title, and pay a fee. It can take four to six weeks for the application to be processed. (3)

Is buying back the right choice?

Stella should ask her insurance company whether they will offer insurance for a vehicle that has a rebuilt title. Some insurance companies may flat out refuse to insure the car, while others may refuse to provide comprehensive or collision coverage.