Auto insurance can be challenging to understand, especially when an accident occurs. Drivers aren’t always clear on what their coverage includes or whose insurer is responsible for paying damages. This becomes even more confusing if you’ve loaned your vehicle to someone else, or you’re driving a car that doesn’t belong to you. In situations such as these, it’s common to wonder if policies are tied to the vehicle or the driver.

How Auto Insurance Works When You’re Loaning or Borrowing a Vehicle

When Does Coverage Follow the Car? 

In most cases, the collision and comprehensive portions of an auto insurance policy are designed to follow the vehicle. Thus, if a family member or someone else designated on your plan gets into a collision in your car, the claim should be filed with your provider unless the other driver was at fault. Your policy will help pay for the repairs to your vehicle. 

When Does Coverage Follow the Driver?

Coverage that follows a driver includes liability, medical payments, and personal injury protection. Liability insurance is meant to protect the driver and pay for any third-party injuries or property damage they cause.

However, often, the driver’s auto insurance acts as the primary coverage, while the car owner’s coverage is considered the secondary. If the damages exceed the limits of the primary, the secondary will kick in to cover the rest. 

When Are There Exceptions?

While this is the general rule of thumb, there are exceptions. For your coverage to extend to someone else driving your vehicle, you must have permitted them to use it. If they didn’t have permission or were explicitly excluded from your policy, your insurer won’t pay for damages they cause. Different rules also apply when renting a car, as insurance tends to follow the driver in this scenario. 

The best way to protect yourself in any situation is to ensure you have adequate auto insurance. If you’re not sure what your coverage entails, reach out to Siemers Insurance Agency for clarification. They can help determine if you’re adequately protected and explain all the options suitable for your circumstances. For more than 60 years, they’ve been providing residents throughout the Greater Cincinnati area with quality products at competitive rates. Call (513) 469-8877 to set up a policy review, or visit them online to view all their offerings.