Who Pays for Damages in an Accident Caused by a Stolen Vehicle?
October 3, 2024 | Car Accidents
Imagine this scenario. You suffer injury in a car accident caused by the other driver. Later, you discover that the at-fault driver was driving a car that they stole. So, who pays for your damages? The answer is perhaps more complex than you might imagine.
The Thief
Someone who stole the vehicle they were driving is very likely to flee the scene of an accident involving that vehicle. And thieves aren’t known for their prosperity. Even if you catch them, it is likely to be futile to seek damages from the thief’s own pocket.
So, can you file a claim against the thief’s liability insurance policy? Not likely, for two reasons. First, if they’re willing to steal a car, then they’re probably willing to drive without insurance. Second, most liability insurance policies won’t pay out when the insured is driving a stolen car. Check the terms of the policy to make sure.
Your Own Collision Coverage
Collision insurance will likely cover damage to your car up to policy limits but minus the deductible. It will not cover your medical bills, lost earnings, pain and suffering, etc. The theft victim’s collision insurance will not cover damage to their vehicle because they were not driving it at the time of the accident.
Your Uninsured/Underinsured Motorist Coverage
Depending on the terms of your policy, many states, such as Arizona and New Mexico, require insurance companies to offer underinsured and uninsured motorist coverage (UIM) to drivers. If you have UIM insurance, it should cover you under these circumstances, at least up to the limits of your policy.
Your Umbrella Insurance
Umbrella insurance is optional auto insurance that kicks in when other policies won’t pay. It is optional. Your umbrella insurance will likely pay at least some of your damages, so check the terms of your policy.
Umbrella insurance is optional. It pays amounts that your other auto insurance policies won’t. Again, check the terms of your policy to see if it will cover you.
The Owner’s Liability Insurance (In Cases of Negligent Entrustment)
If the owner carelessly contributed to the theft by:
- Leaving the keys in the ignition and leaving the car or
- Failing to secure the car in a high-crime area
You might sue the owner for negligent entrustment and claim damages under the owner’s auto liability insurance policy. Negligent entrustment requires you to prove a foreseeable causal link between the owner’s behavior and your injuries.
Proximate Cause
The owner might assert that the thief’s bad driving, which caused the accident, was a superseding cause. The key question is foreseeability. Was injury to a third party (you) a foreseeable consequence of the owner leaving their key in the car? If so, then the owner’s negligence was the proximate cause of your injuries.
Comparative Negligence
If the owner left their keys in the car or otherwise failed to secure the car, you might claim comparative negligence against the owner of the stolen car. A court would assign a percentage of fault to the owner (1% to 100%).
Seeking Damages From the Owner’s Personal Assets
In both cases (proximate cause and comparative negligence), it’s unclear whether the owner’s insurance company would pay your claim. It depends on the terms of the insurance policy. If the insurance company doesn’t pay, you could seek damages from the owner’s personal assets, at least if they can afford to pay.
What to Do to Maximize Your Chances of Compensation
To maximize your chances of compensation, take the following steps to preserve your claim:
- File a police report. You don’t need to do this if the police show up at the scene of the accident, but you will need to obtain a copy.
- Notify your insurance company of the accident ASAP, even if you don’t think they are liable. The terms of your insurance policy likely require this.
- Contact a car accident lawyer to explore your options.
Once you get a car accident lawyer, they can advise you on other steps to take to preserve your claim.
Contact the Arizona Car Accident Lawyers at Curiel & Runion Car Accident and Personal Injury Lawyers Today
If you were injured in an accident in Phoenix, AZ, and need legal help, contact our Phoenix car accident attorneys at Curiel & Runion Car Accident and Personal Injury Lawyers to schedule a free case review today.
Curiel & Runion Car Accident and Personal Injury Lawyers
1221 E Osborn Rd. Suite 201
Phoenix, AZ 85014
(602) 595-5559