Expert: Richard Hixenbaugh - 9/7/2011

Question
So, My car was parked on the street this morning and hit by another car.  The occupants abandoned the car and took off.  20 minutes later while dealing with the police, they get a call that the car was taken without permission and the drivers just told the owners they'd wrecked it and fled the scene

THe owner is picked up by the police and brought to the scene where he tells the cops that he was evicting his roomie who took the car, then later that the car was loaned..

He has valid insurance.. When i called to file a claim against it, they're telling me that they aren't paying since the driver had the car without permission.  I always thought liability followed the car, not the driver.. I live in Missouri and would like to know how I can proceed with getting Geico to take care of their insureds obligation.

Answer
Hi John,

It is true that insurance follows the vehicle and not the driver. However, when a vehicle is taken without permission (theft), the vehicle owner or his insurance company are not responsible for the damage that was caused by the person who stole the car.

It is my understanding that an insurance company can not deny coverage unless the vehicle owner is pressing charges against the theif. There would have to be a police report of a stolen vehicle and an arrest warrant issued for the person who was driving the car. If that is not the case then the insurance company should have to pay the claim, assuming there are no other issues.

I hope this helps
Richard Hixenbaugh