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Ontario man told to pay $10K despite having insurance after brand-new Jeep stolen


An Ontario man said he was shocked when he was asked to pay $10,000 to a financing company, despite having insurance, after his brand-new Jeep had been stolen.

Viktor Dokaj, a resident of Etobicoke, Ont., told CTV News Toronto that his family of five had been thrilled to get a brand-new Jeep Wrangler.

However, Dokaj said his wife went outside one morning last month and it was gone.

"Next thing you know she starts screaming, ‘Viktor, we don't know where the vehicle is,’” Dokaj said. “She said, ‘Our Jeep, it's gone.’”

Dokaj said he filed a police report and contacted his insurance company, which agreed to give him $61,000 but that he was told. under his lease agreement, his total financial commitment was $71,000.

He was told he had to pay the difference, he said.

"I have to pay the remaining balance of almost $10,000 at this point,” Dokaj said, adding that he doesn’t think he should “have to pay for something that he doesn’t own, doesn’t have and doesn’t use.”

According to the Insurance Bureau of Canada (IBC), as people take out longer loans at higher interest rates, it's possible that in some scenarios, insurance will cover the loss of the car, but not the financing.

“In the event of a total loss like this you could end up upside down or in a negative equity position with respect to what the vehicle is worth and what you’re left owing on that vehicle,” Anne Marie Thomas with IBC said.

Insurance payouts may not cover the deductible amount, negative equity, aftermarket add-ons, administration fees, market price adjustments over sticker price and extended warranties, service contracts and insurances.

Thomas said you can buy additional insurance to cover these losses.

“Gap insurance is insurance on the loan whereas a waiver of depreciation is insurance on your car,” she said.

After CTV News reached out to the financing company it dropped the request for the $10,000 and gave Dokaj almost $4,000 dollars back.

"I am more than happy about this, it’s such a relief” Dokaj said.

When buying a vehicle, it's important to factor in all the costs – including the price of financing. Always know that if your vehicle is written off or stolen, the payout may not cover the entire loss. Top Stories

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