Honda ATV stolen with no insurance. Honda wants payment in full

I bought a 2015 Honda ATV 3 months ago and it was stolen. I was looking into insurance to get for it but did not purchase one yet. I called the police and Honda the day it was stolen and Honda told me to keep paying the payments and maybe after a few months if it wasn't found they could lower the payments. Not even a month later I get a letter in the mail from Honda stating I have 30 days to pay the full amount of 6,000 or it will be sent to collections. I don't know what to do. I need advice!

Yes, you need to pay Honda in full, immediately.
Honda loaned you the money because they knew that if you stopped paying, they could repo the ATV and get their money back that way. You don't have the ATV any more, they don't have their surety, you owe the full load amount immediately.

I'm surprised that they let you take out the loan and not have insurance on the ATV.

Advice, I'm guessing that you don't have the money to pay it all off right now. I'd advise that you call and set up a payment plan (in writing) and be prepared to pay a higher interest rate than on the earlier loan.

Your agreement with Honda (and I assume you have a loan by Honda Financial?) is for you to pay the specified monthly installments. Usual loan agreement has a clause that basically says if you were late on payments, they have the right to demand full payment.

The finance company does not care about the fact your ATV was stolen while it was in your possession. It only cares about the fact you borrowed money to buy it, and you "lost" what rightfully belong to them. (since you haven't paid much of your loan, ownership mostly belongs to the finance company)

It sees you as a risk because there's no longer a collateral (the ATV) they can collect, should you default on payment.

You could possibly try to get them to accept monthly payments, rather than an one time payment in full, but you still owe the payments. I doubt attorney can do anything for you either. Sadly, it was your fault for not insuring them before it was stolen and you'll have to deal with the consequences.

You're responsibility…

Call Honda again.

Technically if you loose the vehicle (the security on the loan) the full amount is due. But if they pass this off a collection agency, they will only recover part of the money at best. This is your negotiating point. You will continue to pay off the loan (which you still owe) and they won't send the debt to a collection agency and ruin your credit rating.

Expensive lesson on why you need insurance on an valuable financed item.