Car Insurance: Does It Follow the Vehicle or the Driver?

Does car insurance follow the driver

As a driver, you may find yourself driving someone else’s vehicle or temporarily lending your vehicle to someone. There are multiple factors you should be aware of in such a scenario.

Does your insurance cover the car or the driver in the event of an accident? If someone borrows your car, will you still be covered? Read on to find the answers.

Car vs. Driver Coverage

Numerous factors influence whether insurance follows the car or the driver. Auto insurance often follows the vehicle rather than the driver. However, some types of coverage may follow the driver.

The criteria for whether coverage follows the driver of the vehicle is determined by state insurance legislation, policy type, and policy coverage.

Does Insurance Cover the Vehicle In The Absence Of The Insured?

Yes, if there is comprehensive auto insurance. Additionally, it can cover a driver if they are a family member and have been given the authorization to drive the car.

Paid Car-Sharing

Most insurance policies exclude other drivers if they pay to use the car (for example, if you rent it to a car-sharing company). You will most likely require additional, specialized motor insurance coverage to protect this activity.

Excluded Drivers

Excluded drivers are often not insured when operating a vehicle under your auto insurance policy (they are specifically named on the policy as not covered).

Commercial Activities

In most cases, your insurance coverage won’t cover accidents if you use your car for commercial purposes.

Do I Have Coverage When I Drive Another Car?

This depends on the situation. For example, if you rent a car, your auto insurance policy may cover you while driving. However, if you borrow a friend’s automobile, you are insured as the primary driver under their auto insurance policy.

If you cause an accident while borrowing a friend’s car and the damage exceeds their policy’s coverage limitations, your auto insurance will kick in to cover the remaining costs.

Vehicle Sharing Tips

If you’re planning to share a car with another driver, consider adding them to your auto policy. You should also ensure they’re legally licensed, and their license is not expired.

You should also consider extra insurance if you plan to use the automobile for business or rent it out.

All Cases Are Different

Because each auto insurance policy is unique, your coverage when driving (or renting) a rented automobile can vary substantially. It will depend on the specific terms of your insurance, the state you live in, the driver in issue, and the kind of damage suffered.

Some auto insurance coverages may apply to you as the driver or may apply to just your car. That is why having enough auto insurance coverage is critical.

Also read: Tips for Buying Auto Insurance for Your Teen Driver

Consult with Chambers & Company Insurance Brokers

It is essential to understand your needs to find a policy that suits them—looking for reliable car insurance?

We have everything from comprehensive coverage, collision coverages, liability coverage, or any other type of auto insurance! Contact our insurance agents here at Chambers & Company Insurance Brokers today to ensure you have the necessary protection for your car.


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