The realm of car insurance can often be confusing for those who don't make it a part of their daily lives answering such questions of “Can someone who is not on your insurance drive your vehicle,” or if someone else can insure your financed vehicle. Another common question people ask is if auto insurance follows the vehicle or the driver.
Does Auto Insurance Follow the Driver or the Vehicle?
There are many variables as to whether insurance will follow the vehicle or if it will follow the driver. Generally, auto insurance will follow the vehicle rather than the driver, but some coverage types follow the driver too. The variables that determine if coverage will follow the driver or the vehicle depend on the insurance laws of the state, the policy type, and the coverage within the policy.
What Does Liability Coverage Follow: Vehicle or Driver?
According to Claims Journal, liability coverage always protects the insured, the driver, and will always follow the driver regardless of whose vehicle they are driving. Liability insurance pays for the medical bills and vehicle repair of the other person after an accident.
Does Comprehensive and Collision Follow the Vehicle or Driver?
With comprehensive insurance, it is the vehicle being covered instead of the driver. If the driver loans the vehicle, they are also loaning the insurance. Collision is for the vehicle you are driving, while comprehensive is for damage caused by other circ*mstances.
What Does Comprehensive and Collision Coverage Exclude and Is It Mandatory?
Both comprehensive and collision coverage are optional except in cases where the vehicle is leased or there is an auto loan. While they are often together in a package, comprehensive and collision can be bought separately. As for stipulations for comprehensive and collision, another driver might not be covered in an accident if they are not listed as a covered driver. Family members are typically included in the policy, but insurance does not cover someone who does not have the owner's permission to drive the vehicle.
Can The Driver Exclude Others From Their Policy Coverage?
According to Cover, yes. The driver, or policyholder, is allowed to exclude others from their policy coverage. In some cases, car insurance companies might ask the policyholder to exclude certain drivers from driving their vehicles. These reasons include accidents, DUIs, a teenage driver, or someone who doesn't have the greatest driving record. With an excluded driver, your coverage does not extend to them and you will save money on your premium.
Esurance says that there are a few states that don't allow driver exclusions. These states are Kansas, Wisconsin, Michigan, Virginia, and New York. If you do allow another driver to access your vehicle, verbal permission is usually good enough and a formal letter is not required.
Does Insurance Follow the Car or the Driver If Another Driver Is Driving?
There is no clear line with this question and it depends on the jurisdiction, facts, and policies involved. While there are exceptions, permissive use is normally covered under liability. Policy Genius states that if someone borrows your car without permission, such as a thief, and has an accident, you won't be liable for any damages. However, you will have to use your insurance to cover damages to your vehicle. In some cases, non-permissive use is hard to prove.
If you lend your car to someone and they have an accident, your liability coverage will pay for the damage and injury of the other driver and collision would pay for your vehicle's damage, unless the driver has no license, or is driving under the influence of alcohol or drugs.
What If the Insured Is Driving Someone Else's Vehicle?
Your car insurance will follow you if you are driving a rental car. If the insured is borrowing a car from someone else, some factors need to be considered. These factors include if the insured has permission, if the car is a rental, or if the car is a loaner from a dealership. Each factor depends on the circ*mstances and the insurance law of the state, as well as the policy language.
Will Insurance Cover An Accident If the Insured Isn't Present?
If there is comprehensive auto coverage, then yes. Also if the driver is a relative and had received permission to drive the vehicle. Individual policies and insurance companies will vary.
Does Insurance Follow Me Out of the Country?
Not likely. However, there are a few exceptions sometimes, such as driving in Mexico or Canada. Check with your insurance agent to be sure.
What If the Driver Is From Another State?
In most cases, if the driver has permission, insurance will cover a driver from any state, but that is not always the case. It depends on policy terms and auto coverage. If the insured has MedPay or PIP coverage, and is driving a commercial or company vehicle, then that coverage will be primary. MedPay follows the driver, as does PIP.
Cons of Substandard Policies
Drivers with bad driving records are usually only able to get substandard policies. These policies are cheap and the companies do not cover claims that standard policies would and limit coverage to only those named in the policies. Also, the deductibles will be higher and the policy does not extend to a rental vehicle. Substandard policies also lower liability coverage to a minimum and set limited conditions.
How Can Those Who Don't Own a Vehicle Protect Themselves?
The Zebra states that those who don't own a vehicle, but do borrow them frequently, can get non-owner car insurance. This is an insurance that assures that the driver will have liability coverage, which will then cover costs if the damages exceed the limits of the owner's insurance. It does have its limits as it is a stripped-down type of insurance.
While it may seem like no big deal to lend your car to a friend, it could have serious repercussions if they get into an accident later on. Be sure to thoroughly read your policy to learn which circ*mstances are covered and when to keep your car to yourself. You don't want to end up having to pay for the mistakes of other drivers.
Sources used:
https://www.claimsjournal.com/news/national/2014/06/05/249762.htm
https://www.policygenius.com/auto-insurance/does-car-insurance-follow-the-car-or-the-driver/
https://cover.com/blog/does-car-insurance-follow-the-car-or-the-driver/
https://www.thezebra.com/insurance-guide/does-auto-insurance-follow-car-or-driver/
https://www.esurance.com/info/car/car-insurance-follows-the-driver-myth
Hearst Autos Research
Hearst Autos Research, produced independently of the Car and Driver Editorial staff, provides articles about cars and the automotive industry to help readers make informed purchasing choices.
