Car insurance follows the car, not the driver. Suppose a licensed driver or family member drives your car and gets into an accident. In that case, your policy will likely pay the damages up to its coverage limits. However, it depends on the policy details, who can drive, what auto insurance coverage is included, and any exclusions that may apply.
When Car Insurance Follows the Driver
While car insurance will usually follow the car, there are situations where car insurance will follow the driver.
Your car insurance follows the driver in the situations listed below.
Permissive use: Generally Progressive, State Farm and GEICO will cover you when a family member or friend is driving. Each company has its own rules for what happens if an accident occurs when someone borrows the car and the claim limit can vary. GEICO for example might limit permissive driver claims to the state minimum. In Illinois that’s $25,000 per person, $50,000 per accident for bodily injury and $20,000 property damage. In Texas though the state minimum is $30,000 per person and $60,000 per accident for bodily injury and $25,000 for property damage.
If your car is in the shop: Carriers like Allstate & Nationwide provide coverage in a borrowed car, but the vehicle can't be one you frequently use.
Rental Cars: When it comes to rental cars your personal auto policy generally covers liability. Collision & comprehensive will only apply if you already have that coverage. Some credit cards, like American Express & Chase Sapphire have secondary rental collision damage waivers, which will pay out after your auto policy has paid up to its limits.
When Car Insurance Follows the Car
There are situations when auto insurance follows the car, meaning that if a friend or family member borrows your car, your policy covers them while they drive.
Car insurance follows the insured vehicle in the situations listed below.
Family Members: Your household family members get automatically covered by your policy, with carriers like Progressive, GEICO, State Farm & Farmers. However, your insurer will want to know who all the licensed household members are. Make sure to list them on your policy or they might not be covered.
Friends Cars: Most policies let permissive use cover a friend borrowing a car. Although some carriers like Allstate will only pay out if the occasional driver is listed. There are insurers like Nationwide & Liberty Mutual who will give full coverage to any licensed permissive driver.
What Happens if Someone Gets into an Accident in My Car?
When someone borrows your car, they also borrow your car insurance if they have your permission to use it. The outcome of an accident depends on whether the driver is permissive or non-permissive under your insurance policy.
Liability coverage actually follows the vehicle, not the driver. If you borrow a friend's car and have an accident and they don't have insurance, you are responsible for the damages. If you have a "drive other car" endorsement on your policy, then your insurance carrier will cover you. Carriers like Farmers & Travelers do offer this kind of endorsement for between $20 to $50 a year.
Permissive Drivers
A permissive use driver is someone who has your consent to operate your vehicle. In this case, your auto insurance is the primary insurance coverage.
Suppose your friend, roommate, or someone not on your insurance policy drives your car and is the at-fault driver in an accident. In that case, your auto liability insurance will likely cover the damages if they have your permission to use the vehicle.
However, there are exceptions to permissive use. Your auto insurance may not provide coverage if you lend your car to any of the drivers listed below.
Anyone without a valid drivers license
Someone who should be listed on your policy but isn't
A driver who operates the vehicle under the influence of alcohol or drugs
Non-Permissive Drivers and Excluded Drivers
A non-permissive driver is someone who takes your car without your permission. In this case, their car insurance would be the primary policy. They'd likely be fully responsible for the damages if they got into an accident.
Non-permissive drivers includes car thieves. If someone steals your car and gets into an accident, you won't be liable for the damage to the other vehicle. But you may need to file a claim with your car insurance company to cover repairs to your car.
You can also name someone an excluded driver on your policy, meaning your car insurance does not cover them. If an excluded driver drives your car and gets into an accident, your auto insurance company won't pay. If the excluded driver has auto insurance, their policy may cover the accident.
Does My Auto Insurance Cover Rental Cars or Car-sharing services?
Your personal car insurance policy may cover a rental car, so rental company insurance might be an unnecessary expense. This depends on your policy, so review the details. If you're renting a car for business, your personal insurance won't apply, as some policies exclude work-related rentals. Checking your policy or calling your insurance company is the best way to confirm.
Zipcar members get liability coverage of $300,000 & collision/comprehensive with a $1,000 deductible. Turo's got a system where they offer liability coverage in most states through Liberty Mutual. Turo hosts can choose from insurance plans that cost anywhere from 60% to 90% of the trip price.
Uber & Lyft have $1 million in liability coverage when you've got passengers in the car. When you don’t have passengers in the car, the coverage drops to the state minimum. In Illinois that's $50/100/25, in Texas it's 30/60/25.
Your personal policy won't cover you when you're driving for Uber or Lyft. You'll need to get a rideshare endorsement for proper coverage. Progressive, GEICO, Allstate & Farmers will sell you a rideshare endorsement for anywhere from $15 to $30 a month.
When Would My Insurance Not Cover Other Drivers of My Car?
There are a couple of ways in which someone else driving your vehicle may not be covered by your policies that follow the car.
These cases, however, are particular:
Excluded driver on your policy - Listing someone as an "excluded driver" on your insurance policy means they will not receive coverage when driving the vehicle the insurance follows.
The vehicle is a rental - When you drive a rental car, your car insurance is following you as a driver. So, if anyone else were to drive the rental vehicle, they would only be insured if they have their car insurance policy.
A vehicle is used for commercial purposes - A car used for work reasons, such as ridesharing or storing equipment for service, won't be covered by your auto insurance while you're on the clock.
Can you get Car Insurance If You Don't Own a Vehicle?
Buy non-owner auto insurance to be insured as a driver even if you don't own a car. This type of policy is for people who borrow or rent vehicles often but are not listed on the owner's insurance.
Non-owner auto insurance gives you liability insurance, including bodily injury liability and property damage liability coverage if you get into an at-fault accident in someone else's car. These types of optional coverage do not include comprehensive or collision coverage since they are not tied to a specific vehicle. Some insurers offer additional coverage, like uninsured motorist coverage, for extra financial protection.
Non owner SR-22 insurance policies in Illinois are going to cost between $30 & $75 per month if you're insured with Progressive, Bristol West, or even Dairyland. The cost can range between $360 to $900 a year depending on your driving record.
Texas non-owner SR-22 rates are more expensive in the $40 to $90 per month range.
Standard non owner policies without any SR-22 requirements are a lot cheaper. The rates range from $200 to $500 per year from insurers like GEICO, Progressive or State Farm. A non-owner policy provides liability only coverage at the bare minimums required by state law. State minimums are 25/50/20 in Illinois, 30/60/25 in Texas, and 25/50/25 in Indiana.
Car Insurance does indeed follow the vehicle. However, checking with the vehicle owner or insurer is always helpful.
Get a Free Car Insurance Quote online or Call an insurance agent at 888-949-6289!