Auto Insurance Claims: Inadvertently purchased stolen vehicle, standard protocol, cadillac escalade

Question
On Jan 11th I inadvertently purchased a 2007 Cadillac Escalade which I partially financed through my credit union and paid the rest in cash. I paid a total of $40,000 for the truck. I have owned the truck for a little over 6 months and came come the other day to find my truck missing out of my driveway. I initially thought it was stolen bit right before I called the police I found a business card from a police officer who said he confiscated my Cadillac. When I called the number on the card the officer informed me that I was a victim of a large auto theft ring and I would not be getting my truck back. He asked me who my insurance carrier was and I told him it was Progressive. He told me that usually people in my position get reimbursed for things like this. As of not my insurance company tells me there is a chance I will not be covered and they are still investigating. I would like to know what to expect and if there has ever been situations like this and what the standard protocol is. I was also cleared of any wrong doing or involvement by the detective and I fully cooperated with giving him as much info I could on the guy I purchased my truck from. I would really appreciate your help and knowledge on this.

Rod

Answer
Hi Rod,
I'm sorry to learn of your predicament.
I have dealt with several situations like yours involving the entire car and several that only involved the engine or transmission.

In every situation, the vehicle or the vehicle part went back to the original owner or the insurance company that had paid the claim and the victim (you) received no compensation from his insurance company as this is not a "covered loss" as described in the auto policy.

I suggest that you contact the police officer again, perhaps your state has a law that created a compensation plan.

I hope this information has been of help.

Sincerely,
Bennie