April 27, 2007

We had our car stolen and the thief caused a great deal of property damage. We only have liability coverage. Our insurance company says it won't pay for the other person's property damage because we didn't cause the damage. Do we have to pay for it?

Dear Teresa,

No, you are not responsible for the damages. Most auto insurance policies cover you or anyone whom you give permission to drive your car. Since you obviously did not give the thief permission to drive your car, your policy will not cover the damages.

Lee Jones, a spokesperson for the Texas Department of Insurance, says that since you did not drive the car when it caused the property damage, you are not responsible for it. If the property that has been damaged is a vehicle, the people who own the vehicle could make a claim on their collision insurance (if they have it) to pay for the damage. If they don't have collision coverage, they will have to sue the thief to be compensated for the damage.

Lee Jones, a spokesperson for the Texas Department of Insurance, says that since you did not drive the car when it caused the property damage, you are not responsible for it. If the property that has been damaged is a vehicle, the people who own the vehicle could make a claim on their collision insurance (if they have it) to pay for the damage. If they don't have collision coverage, they will have to sue the thief to be compensated for the damage.

For more information, read When your friend crashes your car: the rules for auto lliability

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