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Unlikely. Theft is only covered while you are the registered owner of the car and the car is taken by an unauthorised party without your permission. When selling a vehicle you give permission to the other party to take the car. This is more a legal/fraud matter in which you could take action against the person who issued the fake cheque and is unrelated to insurance. Seek legal advice.

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Q: Does an insurance company pay off as a stolen car if you received a fake cashiers check when selling car?
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