Can you be held liable for an accident after your car is stolen?

If your car is stolen and gets into an accident, you wouldn't be held liable. Would you?

Depending on the situation and when you reported the vehicle missing, you could be on the hook for damages caused by a stolen vehicle. Because of this, you must report the theft as soon as possible. You also need to inform your insurance.

How exactly does car insurance for a stolen car factor into this situation? Read on to learn about potential liability issues and what you should do if your car is stolen.

Who is liable for an accident with a stolen car?

Interestingly enough, what insurance you have won’t make the difference between whether you are personally held liable for an accident with a stolen car. What makes the difference is whether you properly report the theft to the authorities, including both police and your insurance company.

If you don’t inform your insurance company, you may still be held responsible for damages caused by the stolen vehicle. However, you will want to make sure that the car has actually been stolen before notifying the police or your insurer.

While you will not be held liable for an accident caused by theft, you should know that insurance providers look critically at these claims, as they are prime examples of potential fraud.

Expect to be visited by an insurance investigator who will interview you and take some time to determine whether you had any hand in the theft of your vehicle.

What should you do if your car is stolen?

You should call your local law enforcement’s non-emergency line to see if the car has been towed. If it hasn’t, you will already be on the phone to report a theft. Some cities and states also have sites where you can look up your vehicle to see if it has been impounded or towed recently.

Unfortunately, the police only rarely find stolen cars. Sometimes, the car can be recovered immediately if it was stolen on impulse and quickly abandoned.

Depending on how or why your car was stolen, it may take a while to prove who stole it.

Once you know your car is stolen and have made a police report, call your insurance company so that they are aware of the situation. In addition, contact the DMV to report the vehicle missing so you are not held responsible for any damages.

If you have comprehensive insurance, your insurance provider should reimburse you for the stolen vehicle.

However, negligence such as leaving keys inside the engine may affect your claim. Some cars are more likely to be stolen than others, and parking in a dangerous location and leaving your doors unlocked may leave you liable for damages caused by the person who stole your vehicle. 

You may be held accountable for the damages incurred if the company thinks your negligence caused the damages.

If for whatever reason, the insurance company refuses to reimburse you and does not believe your claim, you can contact a lawyer to help you reach a settlement.

What reimbursement can I expect for a stolen car?

This reimbursement is based on the actual cash value of your car, which is usually calculated based on the replacement cost minus depreciation.

If you don’t have comprehensive coverage, you will likely not be covered for a stolen vehicle and will have to find another method of transportation. Unfortunately, a homeowners insurance policy will not cover vehicle theft even if it was stolen from your driveway or garage. Your car insurance also won’t cover any objects that were in the car itself. It will only cover the car.

However, homeowners insurance or personal property insurance may cover personal items inside the vehicle at the time of the theft. Phones and similar items will have needed to be listed on your homeowners policy to be covered.

If your car is stolen and then found before the insurance company has settled the claim, you should be able to just continue your coverage. If the car was already replaced, the insurer will usually write it off and give the vehicle a salvage title before returning it to you.

You will not be able to drive a car that has a salvage title, though you can get it inspected and upgraded to a rebuilt title so you can drive it again.

How can I prevent my car from being stolen?

Today, more cars than ever are being created with anti-theft technology, such as the Tesla Sentry Mode for Porsches. This security system has already been used to record thefts, allowing for easier tracking and locating of thieves.

You can often qualify for reduced insurance rates if you have certain anti-theft security systems in place on your car such as alarms, anti-theft braking systems and driving wheel locks, and location tracking systems.

However, the main ways to keep your car from being stolen still involve situational awareness and safety. Park in a garage or covered and locked parking area whenever you can. Never leave your keys in the car or your engine running unattended. Try to park in areas where there are lights illuminating the surroundings at night.

Keep your car locked even when you are operating it. As a general rule, a dedicated thief can steal your car if they really want to. Your job is to make it as hard for them as possible.

Make sure your windows and sunroof are closed, and don’t leave valuables in the car, especially where people can see them. Never leave your title in the car.

Plan your route ahead of time and do your research to avoid crime-filled areas. Take a look at your surroundings wherever you go, and make sure you park in the safest area you can. If you are parking on a curb or incline, park with your wheels turned towards the curb so that it is difficult to tow your vehicle.

Consider getting your vehicle identification number etched onto your windows. This makes it more difficult for the thieves to resell the car without having the glass replaced.