If you loan your car to a friend or regularly drive a family member’s vehicle, you might wonder whose auto insurance would cover an accident. Does the coverage follow the car, or will the driver’s insurance pay for damages if they cause a collision? Unfortunately, there’s no easy answer to this question since each type of coverage has different rules.
Does Auto Insurance Cover the Car or the Driver?
When Coverage Follows the Vehicle
Most types of auto insurance coverage follow the car and will pay for damages no matter who was behind the wheel. Comprehensive and collision coverage, for instance, are designed to protect your vehicle, so you can rely on those policies to repair your car even if someone else was driving.
Liability coverage can be more complex. In most cases, your insurer will still be responsible for other driver’s losses if you loan your car to someone else, as long as they had your permission. Your insurer may also refuse to pay if they were under the influence of drugs or alcohol when the accident occurred.
When Coverage Won’t Cover Another Driver
Your auto insurance won’t cover drivers if they don’t have a valid license or are specifically excluded from your insurance policy. If the insurer determines that they should have been included as a listed driver, they may also deny claims related to any accidents they cause. This is why it’s important to have anyone who lives with you listed on your policy, even if they don’t often borrow your car.
What Is “Secondary Insurance?”
If someone causes an accident with damages that exceed your policy’s liability limits, their own car insurance should kick in to cover the rest. However, if they don’t have coverage at all, the injured parties could sue you for the rest of their losses, even if you weren’t in the car. If someone borrows your vehicle on a regular basis, you may ask them to purchase nonowner auto insurance, which fills the gap and protects you from lawsuits.
Since 1969, the dedicated team at Wilson Insurance Agency have been helping Dalton, GA, drivers protect themselves from the unexpected. They work with a wide range of some of the industry’s top auto insurance companies, giving them an almost limitless range of options to choose from and the expertise to help choose the right coverage for you. To speak with an agent and request a free quote, visit their website or call (706) 278-0549 today.