Who pays for damage caused by stolen car? The answer is complicated. 

In theory, the thief is responsible for damaging your car. However, it’s often difficult or even impossible to get him or her to pay up even if a judge awards you compensation.

Other parties could be at fault too. In such a case, you can take these parties to court to claim compensation. You may also be able to claim compensation from your insurance company if you have the right type of coverage. 

What Happens if Your Car Is Stolen and Damaged?

You should report the theft of your car as soon as you find out your car has been stolen. The police will then:

• Create a report 
• Submit the information about your car to the National Crime Information Center. This center, in turn, sends that information to police offices around the country.
• Use scanners to look for your vehicle and notify local patrols to be on the lookout for your car. Sometimes a detective will take over your case.
• If the police find your vehicle abandoned and don’t know who stole it, they will use forensic analysis to identify and track the thief.

If Someone Steals Your Car and Crashes Are You Liable? 

You aren’t usually liable for property damage or bodily injury that the thief causes when driving your vehicle. However, there is one exception to this rule: if you were careless with your car and that carelessness led to the vehicle being stolen. For example, if you leave the keys in the car as you run into the house or your workplace to get something, you can be sued if a thief steals your car and causes an accident. 

Does Liability Cover a Stolen Car? 

Liability insurance doesn’t cover a stolen car or any harm the thief causes while driving it. It only covers property damage and bodily injury caused by you or another driver listed on your policy. 

Comprehensive insurance is the only type of vehicle insurance that compensates you for a stolen car. If you don’t have this type of insurance, you’ll have to pay for damages to your car unless you can get compensation from the thief. Alternatively, you’ll have to buy yourself a new car if the police don’t catch the thief.

Who Pays for Damage Caused by a Stolen Car? 

The thief is always at fault. However, others may have some liability too:  

• Did you secure your car after you parked it by locking it and taking the keys with you? If not, you could be liable for damages.
• Was the car parked in a garage or by a valet service? These parties can be sued if they were negligent when looking after your vehicle.
• If the thief steals your car from a car repair shop, the shop could be liable for damages if it didn’t have proper security to protect customer vehicles and keys.
• It’s also possible to sue the car alarm company (or the mechanic who installed the alarm) if the car alarm didn’t go off when the thief broke into your car. However, these cases are challenging. You’ll have to prove the alarm didn’t go off because it was defective and/or not installed properly. 

Vehicle owners who have a comprehensive vehicle insurance policy should receive compensation from their policy. However, your insurance company can deny your claim if you don’t turn in all your paperwork on time, were negligent with your vehicle’s security, or don’t have the right type of insurance for your vehicle (for instance, if you have personal insurance but were using your vehicle as a ride-share or to make deliveries).

What If a Stolen Car Hits and Runs?

You aren’t criminally responsible if a car thief steals your car and hits someone with it. However, you can be held liable for paying a settlement/judgment if your negligence led to the car theft. 

If you’re injured by the driver of a stolen car, you can claim compensation from your insurer if you have uninsured motorist coverage. This type of insurance specifically covers damage caused by a driver who’s either uninsured or who leaves the scene of the accident.

Gathering Evidence After a Stolen Car Accident 

Tell police about the theft as quickly as possible. You also want to share as much information with them as you can. This can include:

• Anyone you suspect of stealing your car
• Any markings on the car (i.e., dents, bumper stickers, etc.)
• A list of items that were in your car
• The time when you last saw your car (this can help police determine when the theft happened)

Will Insurance Cover Accidents Caused by Stolen Cars?

Basic car insurance doesn’t cover accidents by stolen cars. However, comprehensive insurance will cover the cost of your car, minus depreciation. If your thief hits another car or person, they may be able to claim compensation if they have uninsured or underinsured motorist coverage. 

Can You Sue for Damages After a Stolen Car Accident? 

You can sue for damages after a stolen car accident, but it’s not easy. For one, the police have to catch the thief so you know who to sue. Second, the thief may not have much or any money to pay a settlement or judgment. 

Furthermore, it’s not easy to sue other parties you believe may be responsible for your accident. You have to prove they were negligent. You also have to prove that this negligence caused the theft of your vehicle. 

Can I Sue the Owner of the Stolen Vehicle for Damages? 

Owners are almost never liable for the theft of their vehicles. The only exception to this is negligence. If you can prove the owner was careless in securing his/her vehicle, you may be able to claim compensation.

Can I Sue the Police Department After a Car Chase Accident?

Suing the police for damage or injuries caused by a car chase is almost impossible. That’s because police are shielded by sovereign immunity laws. They can’t be sued for doing their jobs if they’re doing their jobs correctly. 

However, the police can be held liable if they’re breaking the rules. Examples include:

• Chasing a suspect for a minor, non-violent offense, such as shoplifting a pack of cigarettes, in an area where people are likely to get hurt in a car chase
• Not turning on lights or the siren in a car chase
• Continuing a chase after superiors have asked them to stop

How Much Is a Stolen Car Accident Settlement Worth? 

A typical car settlement can be anywhere from $5,000 to $25,000. How much you’ll get from your settlement depends on:

• How badly you (and others in the car with you) were hurt
• Long-term effects of your injuries
• Value of property damaged

Preventing Future Stolen Car Liability Issues 

Preventing car theft is a lot easier than dealing with the aftermath of having your car stolen. Tried and proven ways to protect your car include:

• Installing a car alarm and other anti-theft devices
• Parking your car in a safe place
• Keeping your keys in a safe place
• Keeping your home garage locked at all times

Let your insurance know if you have anti-theft devices in your car. You may be able to get a discount on your policy.
Keep your insurance up to date. You won’t get compensation if your policy isn’t valid.

Conclusion 

Car owners are almost never liable for damage caused by a stolen vehicle. However, you’ll have to deal with the results of damage to your vehicle if you don’t have comprehensive insurance. 

If you’re hit by a stolen car, you’ll likewise have to deal with the aftermath unless you have uninsured or underinsured motorist coverage. However, you may be able to sue not only the thief but also negligent parties who didn’t take adequate measures to prevent the theft.

Our lawyers at Ledger Law know how to handle even the most complex cases related to vehicle theft and accidents. Call us to find out more about your options or to schedule a consultation. 

Frequently Asked Questions About Who Pays for Damage Caused by a Stolen Car

Who pays for damage caused by a stolen car accident?

Insurance pays if you have the right coverage. The thief should pay, but this doesn’t always happen. If someone’s negligence led to the theft, you can sue this person/entity, but proving responsibility won’t be easy.

If someone steals your car and crashes, are you liable for damages?

You’re not responsible for anything a thief does with your car unless your carelessness made it possible for the thief to steal your car in the first place. 

What if a stolen car hits and runs—who is responsible for paying?

The thief should be responsible for paying for the damages he/she caused in a hit-and-run accident. However, if the thief isn’t caught or doesn’t have financial resources, you’ll have to cover the expenses unless you have uninsured or underinsured motorist coverage.

Can you sue the thief after a stolen car accident?

Yes, you can. Make sure you get legal help beforehand to increase your odds of getting compensation.

Can the owner of a stolen car be held liable for damages?

In nearly all cases, the car owner can’t be held liable for damages caused by a car thief.

Can you sue the police department if a stolen car crashes during a chase?

It’s almost impossible to sue the police department for damages/injuries related to a car chase, unless you can prove the officers were shockingly negligent.

How much compensation can you get from a stolen car accident settlement?

Generally speaking, you could get anywhere between $5,000 and $25,000. You’ll get more for a case that caused bodily injury than one that only caused property damage.