Who Pays for Damage Caused by Stolen Cars? (February 2025)

If Someone Steals My Car and Gets in an Accident, Am I Liable?

Generally, you are not liable if someone steals your car and gets into an accident. Virtually no liability insurance policies cover accidents when someone steals your vehicle. The injured person likely will not try to file a lawsuit, but even if they do, your insurance policy will almost certainly not pay.

However, if someone you’ve allowed to use your car causes an accident, you could possibly be liable. To reduce your risk of being found responsible for any accidents or injuries, you should always report a stolen car as soon as you discover that it’s missing.

What if the Thief Damages My Car?

Unfortunately, many car thieves end up crashing or otherwise damaging your car. If this happens with a thief who does not have insurance, your uninsured motorist property damage coverage may prove to be very helpful. You can file a claim with your insurance company to cover repairs or the cost of a new car.

If I Get Hit by a Stolen Car, Who Pays?

Dealing with a car accident injury is never easy, but it’s much harder if it looks like you won’t get any help covering your medical expenses. However, you may still be able to recover compensation. If you have an attorney, your lawyer can help you explore the following options:

The Thief

Who pays for damage caused by stolen cars? If someone steals a car, crashes it and causes injuries or property damage, the thief is liable. Ideally, you can file a car accident lawsuit against the thief and receive compensation.

But more often than not, people hurt in accidents with stolen cars run into one of two issues: the thief cannot be located, or the located thief has no insurance or assets. If you encounter one of these pitfalls, it’s easy to get discouraged. However, you shouldn’t give up yet — you may have other options.

Your Own Uninsured/Underinsured Motorist Coverage

If you cannot recover any damages from the thief, your own uninsured/underinsured motorist insurance coverage might be helpful. You may be able to file a claim against your policy and collect compensation for your injuries and any damage to your car.

Your State Crime Victims Fund

If you cannot recover compensation from your uninsured/underinsured motorist policy (or if you don’t have coverage), it may be worth checking with your state’s crime victim compensation fund. These funds are meant to serve just this purpose: helping victims cover costs they otherwise wouldn’t be able to.

Am I Liable if I Give Someone Permission to Use My Car and They Cause an Accident?

Allowing someone to use your car is much different from having your vehicle stolen. If someone you occasionally permit to use your car causes an accident, you may be liable. Your car insurance will likely cover them, but if their actions lead to enough damage to go beyond your policy limits, you might be on the hook for that extra amount.

This isn’t always the case. However, you stand a greater chance of being held responsible if you had reason to believe the person you lent your car to would cause an accident.

Here’s an example. Imagine that a friend with a spotless driving record asks to borrow your car. You lend it to them, and they get into a minor accident. In this case, your insurance would likely cover damages, and you would probably not be considered liable for their actions.

Now, though, suppose that another friend asks to borrow your car. You know they have been drinking, but you let them anyway, and they cause a major accident with serious injuries. If one of the injured people files a lawsuit, you could be held at least partially liable since you knowingly allowed someone who had been drinking to drive your car.

However, you should never assume that your insurance will cover someone if you lend them your car. For instance, if you have a named driver policy, your insurer will only cover drivers specifically named on your policy. Before you let someone use your car, you should fully know your policy limitations to avoid potential problems down the line.

Have You Been Hurt in an Accident With a Stolen Car?

If you’re hurt by someone driving a stolen car, it can be difficult to know what to do. Do you wait to see if the police find the thief, file a claim with your uninsured motorist coverage right away or do something else?

Fortunately, you don’t have to answer these questions by yourself. An experienced lawyer can help you understand your situation and your options. And when you work with ConsumerShield, finding the right lawyer doesn’t have to be complicated.

ConsumerShield is dedicated to connecting people in need of legal advice with experienced attorneys. Don’t spend hours searching online — fill out our form below and get your free case review today.