Although a large percentage of people own their own car, instances arise when one must borrow or rent one owned by someone else. In such cases, you may wonder—does car insurance follow the vehicle or the driver? The answer, unfortunately, is not entirely clear. It depends on the situation and the type of coverage you're talking about.

Liability Coverage

Liability car insurance covers damages and injuries that occur to other motorists if you should be at fault in an accident. It pays for repairs, medical treatments, and legal costs arising out of the incident. If you should cause a collision while driving a friend's van, your insurance policy will cover you. However, if your friend is also insured, both their insurance and yours will likely be charged for these expenses. If your friend's vehicle is not insured, your policy will cover the entire liability portion—but not damages to your friend's car.

Collision & Comprehensive Coverage

Collision insurance pays for damages to your car when you are at fault in an accident. Comprehensive coverage pays for non-collision losses caused by fire, floods, storms, vandalism, theft, and the like. Both of these follow the vehicle because the premiums are primarily based on its make, model, and age. The policy on your 20-year-old compact car likely wouldn't be adequate to cover damages to your friend's new sports car. Therefore, if you get into an accident while driving their speedster, their policy will have to cover repairs.

To have a friendly, knowledgeable insurance agent help you design the ideal car insurance policy, contact Comaltex Insurance Agency Inc. in New Braunfels, TX. They are locally-owned and have served businesses and individuals in and around Comal County since 1948. Their specialties include auto, home, liability, and life insurance. Visit their website to interact with them online or call them at (830) 625-7511 to request a car insurance quote.