An Atlanta, Georgia man recently shared with Moneywise that he could’ve been stuck paying two car loans after GEICO approved a total loss payout on his stolen vehicle and then revoked it when it was found.

Josh Peresta’s car was stolen from the Atlanta Hartsfield-Jackson International Airport while he was on a business trip in June — one of 161 reported thefts from the lot so far this year, according to the article.

“After filing a claim with his insurer, GEICO, the company agreed to write the car off as a total loss of $35,000,” Moneywise reports.

In the meantime, Peresta purchased a new Audi A4 to replace his stolen Infiniti Q50.

“Not long after the agreement was made, Peresta’s car was found near Orlando by Florida State Patrol and GEICO canceled the settlement,” the article says. “Naturally, Peresta disputed this decision for more than two months before contacting Atlanta News First Investigates.

“After the ANF intervention, GEICO quickly honored its original decision, took possession of the stolen Infiniti, and even increased the settlement payment to account for the additional car payments he had to make and the car’s actual value, reaching a grand total of $39,500.”

“When a car is stolen, insurance companies will help those with comprehensive coverage in one of two ways,” Moneywise wrote. “If the vehicle is ultimately recovered by law enforcement, the insurance company can choose to pay for the damages incurred to the vehicle. But if the damages are too great or the car is never recovered, the insurance company can choose to write it off as a total loss.

“What’s key to note is that insurers may wait to initiate the payout and close the claim (usually about a month), as there is always a chance the car will be recovered. Though Peresta wasted no time getting back on the road in a new vehicle, those in a similar situation may want to practice patience before financing a new car.”

Moneywise also noted a police report is needed to file a stolen vehicle claim.

“During the process, the company may request several pieces of information from you, including where the additional keys were, who had access to the vehicle, and any details about the car’s trim and aftermarket accessories,” the article says.

“You’ll also want to update your insurer if the vehicle is found during the claims process. This can allow your claims manager to assess if the vehicle can be repaired and returned to you instead of being written off as a total loss, which can save time and money.”

For collision repairers, it’s best to keep a few things in mind for the safety of employees and customers if an insurance company tows a recovered vehicle to your shop.

Have the vehicle inspected and tested for drugs and paraphernalia by a third-party biohazard cleaning company. Testing determines whether the amount is too significant to clean without future risk to the car’s occupants; if so, the car could be written off.

It’s also not uncommon for repairers to discover weapons and other strange items in the cars they’re repairing. The right steps to take vary, depending on the circumstance. For example, Linden Wicklund, executive director of the Alliance of Automotive Service Providers Minnesota, previously told Repairer Driven News that standard shop insurance should cover customer cars when they’re at a shop but likely won’t cover the contents of the car.

“Does the shop have a clear customer-facing statement about not being liable for missing property? A gun walking away wouldn’t likely be covered [by] insurance, so turning a blind eye presents lots of risks,” she said.

“One consequence that came up was more about the responsibility to society than something you could be sued for: ‘What if someone forgot they had a gun in their car, and then you see on the evening news that a little kid found it and the worst happened?’ There might not be liability but living with knowing you could have prevented that is horrible.”

A recent business column in Colorado’s The Gazette explores the research steps consumers should take before accepting a total loss settlement from an auto insurance company.

Jim Flynn, a columnist and attorney with Colorado Springs firm Flynn & Wright, wrote that a vehicle owner recently filed suit against her insurance company, claiming it had breached a Colorado statute.

Flynn says in his column that the lawsuit made him question how insurance companies deal with totaled vehicles. He notes the first step is when an insurance company decides a vehicle is a total loss if the cost to repair the vehicle exceeds the “actual cash value.” He says this could be determined by the vehicle owner’s insurance company or the at-fault driver’s insurance provider.

Consumers need to do their homework when dealing with a totaled vehicle’s unique value, Flynn says. He notes that some insurance policies include an appraisal clause to settle disputes between the vehicle owner and the insurance company. The clause allows each side to obtain an appraisal. An umpire makes the final decision between the two appraisals.

“If you do find yourself dealing with a totaled vehicle, most insurance companies have useful information on their website about their claims procedures and other things you need to worry about, like towing and storage expense, renting a substitute vehicle, closing out your loan or lease, etc.,” Flynn says in the closing of his column.

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Featured image: YouTube screenshot of Josh Peresta speaking to Atlanta News First Investigates.