Auto insurance is a bundle of coverage types that, collectively, protect motorists against a variety of threats. For instance, liability coverage pays for losses to others if you injure someone or damage their property. Collision and comprehensive pay for damages to your own vehicle under various circumstances. But drivers may be wondering if their insurance follows them or their vehicle. The answer is more complicated than you may think.

Does Auto Insurance Follow the Driver or the Car?

Liability Coverage

Your insurance policy likely includes liability coverage, as it’s required in nearly every state. If you have liability insurance, it follows you whether you're driving your car, a friend's or relative's car, or a rental. This coverage will pay for losses sustained by others due to your actions. For example, if you drive into a neighbor's fence or strike another car, it covers the cost of repairs and medical treatments. If there are legal costs, including lawyer fees, court costs, and judgment or settlement amounts, you won’t have to pay those either.

Vehicle Owner Liability

If you loan your vehicle to a friend and they cause an accident, your policy will likely be the first one tapped to pay for liability damages. However, if your policy limits are exhausted before the other driver gets what they are due, the at-fault driver—your friend—will be asked to contribute. The same is true if you borrow a friend's car and cause an accident. Your policy won't be tapped for damages until your friend's policy limits have been exhausted.

Collision & Comprehensive

Collision coverage pays for damages to your car sustained in an accident, while comprehensive coverage pays for non-collision losses. These include situations like fire, flood, vandalism, and theft. Both collision and comprehensive coverage are tied to the vehicle, not the driver.

For help designing the right auto insurance policy for your needs, contact Michael E Glick Insurance in Boerne, TX. This independent agency has been serving clients in Central Texas and Hill Country since 1991. Their specialties include auto, home, life, property, and business insurance. Visit their website to reach out online or call (830) 816-9488 to ask about their no charge insurance review policy.