Thieves Hauled Off His New Truck, but He Still Has to Carry the ‘Pay’ Load

Q: I purchased a 1999 Dodge truck in September. Ten days later the truck was stolen and has not been recovered. The claim was turned in to my insurance company and rejected because I had only liability coverage on my previous car, rather than liability and comprehensive, which would have covered the loss.

I now have a $24,000 debt plus interest to be paid over 60 months, and no truck. I feel that the dealer is at least partly responsible. If my salesperson had asked me what kind of insurance I had, I would have told him liability only and he could have issued me a 30-day insurance policy. If I can’t work something out with the dealer, I might have to declare bankruptcy and then everybody loses. What do you think?

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A: I think you’re grasping at straws, and I think you know it. You, and only you, were responsible for making sure your new truck was insured before you drove it off the lot. Insurance companies generally give you 30 days to register a new car with them, so they can update your coverage (and raise your rates). But as you discovered, during that 30 days you only get the coverage you paid for on your previous car.

Liability insurance is required by the state, but other types of coverage are optional. Some people choose to save money by going without collision coverage, which pays for damage to their car in a wreck, or comprehensive coverage, which pays for theft, fire and other losses. On older cars, dropping such coverage can make sense, especially if you have enough money in savings to fix the damage or buy another car. But few of us can handle the loss of a new car without collision and comprehensive insurance.

When we talked on the phone, you told me you also submitted the claim to your wife’s insurance company, since she has both comprehensive and liability coverage on her car. That didn’t work either, because you had taken title to the truck in your name only.

You can go ahead and declare bankruptcy, ruining your own credit and probably that of your wife as well. Or you can be an adult and think of the debt as a student loan for an expensive educational experience. Uncle Sam will help ease your pain a bit. At least some of your loss should be tax-deductible under casualty and theft loss rules. There are restrictions on this deduction, however, so consult a tax preparer.

Portfolio Tracking and Privacy

Q: I have a mutual fund portfolio that’s getting out of control. I recently discovered several Internet sites, such as Yahoo and Snap, that provide handy portfolio trackers. My question is, how safe would it be to have my financial information accessible to people managing the Web site or to nerdy techies who could decipher my password and have access to this information?

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A: Well, they might chortle about the fact that you’re still hanging on to Neuberger & Berman Guardian, but that’s about it.

A portfolio tracker simply has a list of the funds and stocks you own and the number of shares you have. Any techno-crook would be better off digging through your trash.

These Web sites do not require you to reveal your brokerage account number, brokerage password or anything else that would give anyone access to your funds. (Other trackers are Microsoft Investor at https://investor.msn.com and fund researcher Morningstar’s at https://www.morningstar.net, as well as The Times’ at https://www.latimes.com/HOME/BUSINESS/portfolio.htm).

That said, some sites try to collect as much information as they can, the better to market the heck out of you. Often they won’t let you sign on if you don’t reveal your e-mail address. If you value your privacy, there’s nothing stopping you from giving an incorrect address or using an e-mail address that blocks all but specifically identified people or organizations from reaching you.

Naturally, just as you should never give out sensitive information to strangers over the phone, you shouldn’t divulge your Social Security number, mother’s maiden name or your birthplace to a strange Web site. Other than that, enjoy yourself. The Web is full of great little gadgets such as portfolio trackers that will make you wonder how investors in the Stone Age of five years ago ever managed.

401(k) Money Must Be Forwarded

Q: Our company hasn’t forwarded contributions to our 401(k) accounts for more than four months, even though it continues to take money out of our paychecks. I have called the company that manages the 401(k) and was told there is a law requiring faster deposits but that no one enforces it. What should I do?

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A: There is a law, and it most certainly is enforced. Call the U.S. Department of Labor Pension and Welfare Benefit Administration at (626) 583-7862 and tell them your problem. It could be that your company is using your 401(k) money to meet its payroll, pay its vendors or finance the CEO’s trip to Hawaii. Regardless, it’s wrong, and it needs to stop.

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Liz Pulliam is a personal finance writer for The Times. Questions for this column may be sent to liz.pulliam@latimes.com on the Internet or mailed to Money Talk, Business Section, Los Angeles Times, Times Mirror Square, Los Angeles, CA 90053.