Latest news with #auto insurance
CTV News
29-07-2025
- Automotive
- CTV News
Car theft numbers are dropping, but will your insurance rates?
Experts say car thieves are employing new tactics as awareness and enforcement has resulted in a drop in auto thefts in 2025. John Vennavally-Rao reports. Experts say car thieves are employing new tactics as awareness and enforcement has resulted in a drop in auto thefts in 2025. John Vennavally-Rao reports. Car thefts are down dramatically across Canada this year, but don't expect your auto insurance bill to get any cheaper. New data shows vehicle thefts dropped 19 per cent nationally in the first half of 2025, compared to the same period last year. Ontario saw the biggest decline at 26 per cent. But insurance industry officials say the improvement in theft rates won't necessarily translate to lower premiums for drivers anytime soon. 'It's encouraging to see some small steps in the right direction,' Hanna Beydoun, director of auto policy at the Insurance Bureau of Canada, told CTV News. 'But the problem remains significantly above historical levels, and it's far from the only factor that contributes to the cost that drivers pay for auto insurance.' According to a new report from Equate Association, 23,000 personal cars and trucks were stolen in the first half of this year, which is down substantially from the 34,000 by July of 2023. While the numbers represent progress, they come after a decade of rising theft rates. The Insurance Bureau of Canada says over the last 10 years, claims are up more than 115 per cent and auto theft costs have skyrocketed 371 per cent. 'One year is great, it's a great indication of where trends might go,' Beydoun said. 'But there's still lots more work that remains to be done to get us out of this auto theft crisis.' Why premiums keep rising Beyond theft, Beydoun says several factors are driving up insurance costs across the country, including repair costs having jumped 22 per cent since the pandemic began, noting that tariffs on vehicle parts are making replacements more expensive. She also says Alberta has seen collision-related lawsuits rise significantly. 'Unless all the cost drivers are completely pulled out of the system, there's going to be continued upward pressure on auto insurance premiums across the country,' Beydoun said. For Ryan Tostik of Milton, Ont., the theft statistics aren't just numbers. They represent a devastating personal loss. His beloved 2004 Chevy Silverado was stolen from an auto repair shop on July 18. Tostik had spent six years and a lot of money restoring the truck, including a fresh paint job and new engine. 'It's all a big shock, to be honest. I kind of feel violated,' he said. 'Considering how much money that I put into it, and it was considered almost finished.' Tostik says to him, the truck was worth between $50,000 and $60,000, and he can't believe it was gone 'within minutes.' He says the response from police was discouraging. 'They just say it's an everyday occurrence. So, more or less, they tell me you're on your own,' he said. 'Otherwise, call your insurance company.' Now Tostik is hoping his insurer will recognize the truck's value, and is armed with receipts for all the restoration work. 'I never had anything stolen in my life. So it's a big shock and a gut-wrenching feeling in the stomach,' he said. 'I'd like to have the vehicle back. I'm not hopeful, but I'm trying to be hopeful.' Brian Gast, national vice-president of Investigative Services at Equite Association, credits the decline in thefts to increased public awareness and a collaborate effort between various levels of government and law enforcement agencies. 'I do caution that even though the numbers are going down, they're still high,' he said. 'It doesn't mean that we need to take our foot off the gas.' Gast says auto theft remains a major funding source for organized crime and criminals are adapting. Gast says investigators are seeing more 'chop shops,' where stolen vehicles are dismantled and sold for parts, and they're also replacing the vehicle identification number on stolen vehicles. How to protect yourself Gast has a few recommendations when it comes to vehicle security: Park in a garage or well-lit area, when possible Keep windows up and doors locked Never leave key fobs inside the vehicle Consider aftermarket tracking devices Use visible deterrents like steering wheel locks 'You don't have to do them all, but we call it a layered approach,' Gast said.
Yahoo
24-07-2025
- Automotive
- Yahoo
How a car loan charge-off works — and how to avoid repossession
Key takeaways A car loan charge-off happens when the lender does not believe you will pay off the loan, usually after a period of no payments. Potential consequences include damage to your credit score, collection efforts, wage garnishment and repossession. If your account enters the charge-off stage, your best option is to continue making payments while working with your lender to get up-to-date on your account. Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service Affordable Auto Insurance, Customized for You The Insurance Savings You Expect If you have an auto loan that you've fallen behind on, the lender may eventually decide to charge off the loan. A charge-off means the lender assumes you won't repay the debt. Having a loan charged off does not mean you're off the hook for repayment, and it doesn't change the original terms of your loan. In many cases, the lender may send the debt to a collection agency that will pursue repayment. Understand your responsibilities and what steps will happen before and after the car loan charge-off to minimize the effect on your finances. What is an auto loan charge-off? During a car loan charge-off, a company moves an account — such as an auto loan — from its asset column to a liability column for accounting purposes. Often, lenders take this step after unsuccessfully trying to collect on a debt for an extended period. For record-keeping purposes, the lender is declaring the debt uncollectible. Auto loans generally must be charged off after 120 days of nonpayment. An auto loan may be charged off in as little as 60 days if the lender is notified that the borrower has filed for bankruptcy. When companies or lenders charge off a debt, it can be written off for tax purposes. However, you still owe the money, and the terms of your loan stay the same. You are still fully responsible for repaying the debt. How an auto loan charge-off works When a lender considers an auto loan debt uncollectible, it can choose to begin the charge-off process, which will affect you as the borrower. The debt is shifted from asset to liability. Step one of an auto loan charge-off is simply an accounting classification. The lender shifts the loan from its assets column and officially categorizes it as a liability, which means the loan is no longer considered income for the lender. Instead, it is considered a loss. Notification of default. Depending on your state, the lender may be required to send you a notice of default and give you a chance to repay the outstanding debt. Not every state requires this. A third-party collection agency may take over. When the original lender charges off a loan, it is sent to a third-party collection agency. Collection efforts may include suing you for repayment. If there is a judgment against you, a portion of your wages may be garnished. The charge-off is reported to credit bureaus. Once a debt is charged off by a lender, your credit score also takes a hit. This is because the account will be listed on your credit profile as charged off, which is a serious negative mark indicating you did not fulfill your obligation. You may see as much as a 100-point drop in your credit score. Vehicle repossession. Most auto loans are secured by the car you purchase with them. This means your car may ultimately be repossessed by a debt collector. Like a charge-off, repossession can impact your credit score for years. How long does a charge off stay on your credit report? A charge-off can remain on your credit report for up to seven years from the first missed payment. Then it should automatically fall off your report. Is a charge-off better than repossession? Both a charge-off and repossession negatively impact your credit score, which may hinder your ability to access loans in the future. That said, a charge-off could impact you less if you can bring the loan current and avoid repossession. You will still be responsible for the outstanding debt balance, as you would with a repossession, unless the lender sells the vehicle and uses the proceeds to cover what you still owe. But you will not have both a charge-off and repossession on your credit report. Driving a charged-off car A car loan is typically secured by the vehicle bought with the loan. If you don't make payments, the lender can repossess and sell the vehicle to cover the loss. However, even when a lender charges off an auto loan, you may be able to continue driving the car — at least for a little while. In some states, lenders must issue a default notice and give you the opportunity to bring the loan current before repossession. In such cases, you can avoid repossession if you pay off the debt or make satisfactory payment arrangements. However, not all states have this requirement. In those states, your car could be repossessed at any time. If you used an unsecured loan to buy the vehicle, the car doesn't back the loan and cannot be repossessed by the lender. However, the lender could still sue you to recoup the losses of the unpaid loan. That could lead to eventual garnished wages or other consequences. What to do if your car loan is charged off When your car loan has been charged off, there are several steps you can take. Remember that the car loan charge-off will remain on your credit report for seven years. It will affect your ability to get more car loans. Loan charge-offs may force you to seek bad-credit auto loans with higher interest rates, so resolve the debt directly if you can. Request a settlement You can contact the lender or collections agency to ask if you can pay a flat amount to clear up the debt. This payment is known as a car loan settlement. The paid amount is often lower than the remaining balance. Settling a car loan will ding your credit score but may look better to future lenders than leaving the debt unresolved. Negotiate with your lender You might also try to negotiate loan terms that are more manageable for you. If you show you are willing to pay off the loan, the lender may be willing to work with you. For instance, the lender may agree to longer terms so the monthly payments are more manageable (though this will mean paying more interest over time). Run out the statute of limitations You could also look into your state's statute of limitations on debt collection. It will tell you how long the lender or a collection agency can continue to try and collect from you. The statute of limitations ranges between three to 10 years from the date of default, depending on where you live. Be aware that continuing to skip payments will result in additional damage to your credit score. Reinstate your auto loan Reinstatement is the process of bringing a delinquent loan current. This means paying all past-due payments, late fees or penalties that you owe. A loan can be reinstated before or after your vehicle is repossessed. If your vehicle has already been repossessed, reinstating the loan will allow you to take back your car and resume payments on your loan. To begin reinstating your loan, contact your lender and request a reinstatement quote in writing. This quote will finalize the total amount you must pay to bring the loan current and set a deadline for payment. You may be able to negotiate a new payment strategy during the reinstatement process. It's important to act quickly since many lenders will give you as little as 10 to 15 days to accept your quote and begin repayment. Pursue bankruptcy If you're facing financial difficulties, you may be considering filing for bankruptcy. All charged-off loans must be included when filing for bankruptcy. What happens next depends on the type of bankruptcy you pursue. Options may include: Reaffirming the loan and continuing to make payments. Redeeming the car by paying off the loan in a lump sum. Surrendering the car to the creditor, who may sell it to pay off part of the outstanding debt or discharge the remainder as part of the bankruptcy. Learn more: How to file for bankruptcy and keep your car Refinance your loan If you're having trouble paying off your auto loan, auto loan refinancing can lead to more manageable payments. You can refinance your car after a charge-off if you act quickly and show the lender you are willing to work to pay off the loan. Since the charge-off is likely already on your credit score, it might be harder to refinance, especially if you are looking for lower rates. You may need a cosigner to refinance if your credit score has been negatively impacted by late payments and a charge-off. Bottom line When a car loan is charged off, you are still responsible for repaying the debt. You may have to deal with a third-party collection agency. Your car could be repossessed, or you could be sued for repayment. Charged-off accounts also damage your credit score. If you are behind on auto loan payments, the first step is contacting the lender or collection agency to pay off the debt or negotiate manageable repayment terms. You may even seek a car loan settlement. If you're being sued for repayment, you should contact an attorney. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-07-2025
- Automotive
- Yahoo
LendingClub found a new way to reward personal loan borrowers. Will other lenders follow suit?
Key takeaways The personal loan lender's new LevelUp Checking account offers 2 percent cash back for customers who make an on-time monthly payment toward their debt. The feature is five times more valuable than a similar perk offered by competing lenders. Borrowing from the same financial institution where you bank might be convenient, but it's still wise to pursue the best loan possible. Switch Auto Insurance and Save Today! Great Rates and Award-Winning Service The Insurance Savings You Expect Affordable Auto Insurance, Customized for You When it goes well, personal loan repayment is boring. You have your funds, and you're simply whittling the balance down, one installment payment at a time. LendingClub, however, recently announced an innovation that should improve the experience for its customers: If you enroll in its LevelUp Checking account, you get 2 percent of your monthly personal loan payment as cash back each month, as long as you pay on time. That might not sound like a lot — and we did the math to find out — but there are no reward limits. The cash back could be significant if you have multiple LendingClub loans or a very large balance. Also, consider that for the average personal loan repayment, LendingClub's cash-back bonus is almost five times more valuable than other lenders' closest facsimile: an interest-rate reduction (typically of 0.25 percentage points) for enrolling in automatic payments or having a bank account with the lender. That might explain why this is a true first. 'We spent a lot of time looking,' LendingClub chief customer officer Mark Elliot tells Bankrate. 'We haven't seen anybody doing this.' Personal loan benefits are typically few and far between If you borrow a student loan from some lenders and you graduate on time or with a certain GPA, they might reduce your principal balance. And if you take out an auto loan, you might qualify for a promotional APR or cash-back bonus upon buying your car. The pros and cons of personal loans, however, are largely the same among lenders and don't change as often as other financial products. Heck, we've even pointed out the fact that origination fees still (unnecessarily) exist. That's partly what makes LendingClub's new feature so novel. Nobody else is doing it. The basics of LendingClub's LevelUp Checking accounts Only available to current members (or after you get a personal loan) 2 percent of your payment as cash back for each loan you make an on-time payment toward (with no reward limits) 1 percent cash back when you use a LevelUp Checking debit card for gas, grocery and pharmacy purchases (among other common bank account features) LendingClub, which also offers a high-yield savings account, sees its checking account's features as a way to reward their borrowers on a regular basis — and offer credit card-like rewards with lower risks of accumulating debt. 'We want to [incentivize] those really good financial behaviors and not just have our customers feel like, 'OK, I'm paying this loan on time,' but 'I'm getting rewarded for doing the right thing,'' LendingClub's Elliot says. 'Obviously, it helps your credit score and it helps you qualify for loans in the future and all those things. But … when we tested this with our members, their eyes lit up. They were like, 'Nobody's doing this in the industry, this feels like it really recognizes me for taking all of those steps.'' Just how valuable is LendingClub's cash-back offer? Say you have the average personal loan: $6,200 with a 21.8 annual percentage rate percent on a three-year repayment term, according to early 2025 TransUnion data. An on-time payment would net you nearly $5 each month. Again, larger balances (or multiple loans) could multiply the reward. Loan 1: $6,200 Loan 2: $12,400 Loan 3: $24,800 Monthly payment $236 $472 $945 Monthly reward $5 $9 $19 Annual reward $57 $113 $228 The most similar personal loan perk offered elsewhere might be an interest-rate reduction (typically of 0.25 percentage points) for enrolling in automatic payments or having a bank account with the lender. To compare the value of these benefits, let's use the same $6,200 loan and compare cash back with LendingClub versus savings at SoFi, another major online lender. Reward LendingClub's 2 percent cash back for on-time payment SoFi's relationship discount: Rate decreases to 21.55 percent Monthly $5 $1 Annual $59 $12 Total (three years) $170 $36 While even a slightly lower APR lasts for the duration of your repayment and offers nominal savings, it doesn't offer the same flexibility. After all, you could use a cash-back award to pay off your personal loan faster, but it could also help you build an emergency fund or accomplish another savings goal. OK, but should you borrow from the financial institution where you bank? The best personal loan for your situation likely has the lowest interest rate, best available repayment term and the least fees. Still, if multiple lenders quote you similar loan offers, features like LendingClub's could be a tie-breaker. Just don't expect many personal loan lenders to copy-cat this new invention. Elliot, who has long worked in the financial services industry for firms like Capital One, J.P. Morgan Chase and TIAA, is skeptical. For one, many lenders aren't banks and can't offer checking and savings accounts. For another, even those that do might not want to lose money on paying out bonuses. 'And so, as a result, when you look at a product like this, you say to yourself, 'All right, well, 2 percent back for on-time loan payments, that's a cost to the company,'' Elliot says. 'The worst thing that happens is a lot of our members get it, and they're all paying [their loans] on time, and we're spending a lot of money on rewards… but that would be a great outcome for our members.' As a consumer, having multiple accounts under one roof, even a digital one, means it's easier to shuttle cash between them with seconds-long transfers. The question then becomes whether there's any fly in the ointment. Most notably, if you default on loan repayment, it's also easier for the financial institution to seize your liquid cash if it's already in their vault. For his part, Elliot says this isn't a common practice at LendingClub — and is avoidable. 'Our approach is to try to help the borrower and try to figure out ways to solution with them,' he adds. 'Like every borrower or lender, we do loan modifications for borrowers in trouble. And we have a lot of procedures and processes and analytics around, 'How can we help the borrower?'' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
