Q: I borrowed my neighbor’s car to go shopping. Although I locked the car, it was stolen from the store’s parking lot. If his insurance will cover the loss, do I owe him anything?

A: A sho’el (borrower) is certainly responsible for such theft. Many classical authorities hold you liable even if the insurance company will compensate the owner for the loss. They view the insurance contract as a separate, actuarial business deal, which pays the car’s value in return for premiums paid during the coverage (Pischei Choshen, Pikadon 8:18).

However, insurance policies will usually not compensate if the loss is covered by a third party. Thus, if the owner collects payment from you, he will not be able to claim the loss from the company.

Therefore, some contemporary authorities maintain that, in the absence of negligence, the claim should be to the insurance company. This is especially true if there is a clear, common practice to collect from the insurance company and not from the borrower. Nonetheless, if claiming from the insurance will result in increased premiums or losing a “no-claims” discount for the owner, you are required to compensate him for this (see Minchas Yitzchak 2:88; 3:126).