Interesting question. Sorry to read of this situation.
If stolen, I would think you have no liability.
In no way am I offering you legal advice, and in no way has my comment created an attorney-client relationship. You are not to rely upon my note above in any way, but insted need to sit down with counsel and share all relevant facts before receiving fully-informed legal advice. If you want to be completely sure of your rights, you must sit down with an experienced criminal defense attorney to be fully aware of your rights.
Contact a local area attorney to clarify this matter for you and to notify the insurance company that you are not liable.
Mr. Crosner is licensed to practice law in California and has been practicing law in California since 1978. The response herein is general legal and business analysis.. It is not intended nor construed to be "legal advice" but rather it is analysis, and different lawyers may analyze this matter differently, especially if there are additional facts not reflected in the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. I am not your attorney until retained by a written retainer agreement signed by both of us. See also avvo.com terms and conditions item 9, incorporated as if it was reprinted here.
Assuming the facts are as you state, you should not have liability for the actions of a thief. You did not place this uninsured vehicle on the road, nor did you give him permission to do so. I suggest you obtain a copy of the police report and conviction record and provide that to the carrier in hopes they will leave you alone. If they continue to pursue you, you will probably need to hire a civil defense attorney to help get you out of this mess.
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Mr. Lundeen is licensed to practice law in Florida and Vermont. The response herein is not legal advice and does not create an attorney/client relationship. The response is in the form of legal education and is intended to provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that, if known, could significantly change the reply and make it unsuitable. Mr. Lundeen strongly advises the questioner to confer with an attorney in your state in order to ensure proper advice is received.
This ans. does not create an attorney/client relationship.
An insurance company cannot unilaterally find you to be liable. They can tell you they THINK you are liable, and they can threaten to sue you to get the court to find that you are liable. And, if they sue you and you don't defend, they will win, and that would result in all kinds of problems for you.
If they were to sue you, the outcome would depend largely upon the facts. If you left the keys in the ignition, or if there had been a spate of recent thefts in your neighborhood, the insurer could argue that you did not exercise sufficient care. Whether a jury would agree is another question.
I suggest that you hire an attorney on an hourly basis to write to the insurance company and tell them that you are not responsible, and to explain why. If the insurance company knows you have an advocate in your corner, I'll bet that they will decide to leave you alone. And, if the insurance company does not decide to leave you alone, you'll have an attorney ready to deal with them.