If your child was driving a car that was on your auto insurance policy and he was listed on your insurance policy as a driver (or wasn't listed but due to the terms of your policy would still be covered by your insurance coverages) than yes, normally your car's Property Damage Liability (PD) coverage would cover your child running into a neighbor's house with your vehicle.

Property Damage Liability covers you if your car damages someone else's property. Usually it is their car, but it could be a fence, a house or any other property damaged in an accident. It also provides you with legal defense if another party files a lawsuit against you. It is a good idea to purchase enough of this insurance to cover the amount of damage your car might do to another vehicle or object.

If you select limits that are too low, you could be putting yourself at risk financially. For example, if either you or a driver covered by your policy cause a serious accident where damages exceed your limits, you will be held responsible for the amount above your limits. To make that payment, you could be forced to liquidate property, savings, and other assets, or your future earnings could be attached. By purchasing liability limits to account for both your current assets and future net worth, you can help protect yourself against this risk. Coverage is limited to the terms and conditions contained in the policy.

So your car insurance's PD coverage should cover the neighbor's house's damages, as long as there are not any exclusions that would allow them to deny the claim. This means if you did not have your son listed on your policy as a driver but was required by your insurer to have done so or if you signed off on him being excluded from the policy than your neighbor's Property Damage Liability claim against your car insurance policy could be denied. Also keep in mind that even if the claim is accepted that if the cost of the repairs to the neighbor's house exceeds the limits of your PD Liability coverages you and your son may be held personally responsible for that amount.

Speak to your agent about the incident so that he or she can tell you if your child was covered to drive your vehicle and if this accident will be covered. If your rates go up do to this claim you can shop around for inexpensive car insurance coverage here with us.