Does a lender have insurance to help write car off when they find it repo it?

Yes, most lenders have insurance coverage called "Comprehensive coverage” or "Repossession Gap/Voluntary Repo Insurance" to protect themselves in case a repossessed vehicle is stolen, vandalized, or damaged before it can be sold. This type of insurance typically covers physical damage to the vehicle while a financial institution has a lien.

When a person defaults on their auto loan payments and the vehicle is repossessed, if you owe more on your car loan or lease agreement than your insurance covers when it's totalled before the auto lender receives the settlement money for your totalled car. This type of insurance coverage helps lenders minimize potential losses they can face in circumstances beyond their control while trying to recover their investment in a financed vehicles before a defaulted auto can be resold after repossession.