Texas police recover 4 stolen GMC trucks from Houston worth $220K linked to VIN cloning ring — what crimes like these can mean for your wallet down the road

Buying used? Look for red flags

In 2024, more than 850,000 vehicles were stolen in the U.S., costing car owners around $8 billion, according to the National Highway Traffic Safety Administration (NHTSA). Vehicle theft can lead to significant financial losses, including the cost of replacing a car and a higher insurance rate over the long term. But it’s not just car owners who pay the price.

Buyers of used vehicles are also at risk. For example, if authorities discover you’ve bought a cloned car, your car can be seized and you won’t be reimbursed, according to the National Insurance Crime Bureau.

So it pays to exercise extra caution when buying a used vehicle from a private seller.

Red flags can include vehicles being sold on social media, vehicles with out-of-state titles and prices significantly below market value.

For example, the GMC Denali trucks were sold significantly below market value on Facebook Marketplace.

In some states, you can have a VIN verification inspection performed by the DMV before you buy a car. If the seller refuses, that’s a red flag. Always get a vehicle history report and perform a title search through the National Motor Vehicle Title Information System — and be sure to get the seller’s I.D.

To help prevent your car from being stolen, the NHTSA recommends that owners “use common sense.”

For example, don’t leave your vehicle running unattended, park in well-lit areas if possible and lock all windows and doors when you park. You may want to consider an anti-theft system such as an immobilizer or vehicle recovery system, too.

If your car is stolen, contact the police immediately. Once you have the police report, you’ll need to contact your insurance company within 24 hours of the time it was stolen. If you find your vehicle before the police do, contact the police and your insurance company immediately.

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Make sure you have the right insurance

Comprehensive coverage is the only type of vehicle coverage that will allow you to make claims for theft. If your car isn’t recovered or is totaled after it’s stolen, comprehensive coverage may pay out the actual cash value of the car.

While vehicle insurance doesn’t cover personal items that were in the car when it was stolen, your homeowner’s policy likely will.

The actual cash value of the car is what your car was worth when it was stolen after accounting for depreciation and the condition of your car. It will likely be below the replacement value of the car, and it may even be lower than your outstanding loan or lease balance.

If your car is relatively new, you may want to consider new car replacement coverage, which will pay out enough for you to replace your car with the same make and model. You might also want to consider getting gap insurance, which will pay off what you still owe on your loan or lease if the initial payout isn’t enough to cover this.

Your insurance premiums are likely to go up after a theft. But whether they do, and by how much, depends on your specific policy.

And, even if your car is recovered, its value may drop. This decision will be up to the insurance company, which will determine the amount of depreciation to assign to the car and whether to place a salvage title on it.

A salvage title is assigned when the insurance company deems the cost of repairing the car to be greater than the value of the car. This can happen if the car has been in an accident, vandalized or stripped of parts. You can choose to buy back your car with a salvage title, but it will be difficult to sell or finance — and will likely lose 20% to 40% of its value, according to Kelley Blue Book.

Car theft isn’t just inconvenient, it can be costly. But taking precautions as a buyer and making sure you have the right insurance can help.