Many states require the lienholder be compensated by the insurance carrier for an auto theft claim.
There are also states like Ohio and others that had no such protection. This event can be very costly to creditors.
In the event the insured is denied on an auto theft claim, the creditor is denied as well. Many reported stolen are recovered burned and worth maybe a couple hundred bucks. Now there is no collateral to be used for the loan.
You can sue the debtor and realize chances of collecting from the debtor is a long shot, or I could give you a much better option. Sue the insurance company with the backing you require!
Obviously, the carrier is out to make money for their share holder. One way of doing this is not to pay claims. How can they get away without paying an auto theft claim?
The carriers use a third party forensic vendor to accuse the insured of having the last key used before the theft. With this conclusion, the investigator can imagine their own motives, install the needed _facts” to support a bogus theft claim submission and the claim is denied.
The carrier does not care as to how the vendor reached their conclusion.