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.
Sometimes, the driver’s car insurance will pay out once your policy limits are reached. Understanding primary and secondary insurance and non-owner car insurance policies can help you know when and how coverage applies in different driving situations.
Does Car Insurance Cover the Car or the Driver?
When you buy an auto insurance policy, you might wonder if the coverage applies to the car or the driver. Your policy documents will specify which vehicle or vehicles are insured and who is covered under the insurance policy. This is straightforward if you’re the vehicle owner.
But what if your girlfriend asks to borrow your car while hers is in the shop? In many cases, your existing policy will cover her, so if she gets into an accident while driving your vehicle, your insurance will pay for any approved claims. But this isn’t always the case, so the best way to confirm is to check your policy language or talk to your insurance agent.
If you drive your girlfriend’s car instead of your own, you may have coverage under your own car insurance policy. Again, this depends on the details of both your policy and hers. For example, suppose her insurance policy doesn’t have collision coverage. In that case, your collision coverage may pay out if you get into an accident.
When Car Insurance Follows the Driver
While car insurance will usually follow the car, there are situations where car insurance will follow the driver.
For example, if you don’t own a car or your vehicle is unavailable, you might use a friend or family member’s car to get around.
Your car insurance follows the driver in the situations listed below.
- Permissive Use – If you borrow a car from a friend or family member with their permission, your insurance policy may apply instead of theirs.
- Your Car is Unavailable – If your vehicle is being repaired or out of service, your policy may cover you while driving a borrowed car to avoid a lapse in coverage.
- Renting a Car – Many rental companies offer their insurance, but your policy may extend to liability coverage. However, collision and comprehensive coverage may not apply.
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 – Immediate family members in your household are usually listed on your policy, and visiting relatives may also be covered when using your car.
- Road Trips – If you’re sharing driving with friends or family on a trip, your insurance will cover whoever is behind the wheel.
- Friend or Family’s Car is Unavailable – If a loved one’s car is in the shop, your insurance protects them. At the same time, they borrow it for essential travel.
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 insurance coverage, which covers damage to others, applies to the insured vehicle and not the driver. So, if you drive a friend’s car and they don’t have car insurance, you could still get a ticket even if you have good insurance coverage.
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.
Car-sharing services like Zipcar and ridesharing services like Uber have their car insurance. Still, coverage options vary by provider and state. Typically, these services offer minimal liability coverage, which may not fully protect hosts or renters in case of an auto accident.
If you’re renting your car through a service, you may want to talk to your insurance provider about non-owner car insurance to ensure your protection.
Your auto insurance might cover liability and physical damage when renting a car. Still, there are exclusions, such as coverage for rental fees while the vehicle is being repaired.
Since rental companies charge high fees for their protection plans, consult your insurance provider ahead of time to see if your existing policy is sufficient and save yourself from unnecessary costs.
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.
This is good for frequent renters, drivers of borrowed cars, or those who need to keep insurance continuous to avoid a lapse in coverage. After DUIs with an SR-22, you must get your license back. Non-owner policies are cheaper than rental car insurance and offer similar protection.
Car Insurance does indeed follow the vehicle. However, checking with the vehicle owner or insurer is always helpful. Want to Read more information about this topic? Read about Rental Car Insurance or Can I drive somebody else’s car without insurance?
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