If you buy a car and insure it and it turns out it is a stolen vehicle should insurance pay for it?

This is one of the diciest situations that can happen to somebody purchasing a vehicle. Frequently, the last purchaser of the stolen vehicle is screwed. Hyper-technically speaking, you received stolen goods, which makes you a fence! But those cases are rarely prosecuted, if the purchase was done in good faith on your part. But what will that get you except being car-less and thousands of dollars poorer? Not much. You're only recourse is through the civil courts. You'll have to sue the party who sold you the vehicle. Hard if it's a dealer; very hard if not impossible if it's a private individual. The insurance company is not required to pay you anything, because the car was not stolen from you and you were not the rightful owner to begin with.