You need car insurance to legally drive a vehicle. In Texas, the minimum requirements are $60,000 of bodily injury coverage per accident and $25,000 of property damage coverage. But are those values attached to you—or your car? The guide below explains whether or not insurance follows the driver or the vehicle.  

When Car Insurance Goes With the Car

Standard insurance policies cover damage to your car when you are the one in the driver’s seat. However, there is a grey area when someone else drives your vehicle. Comprehensive and liability coverage will typically cover damage if someone not listed gets into an accident as long as they have your consent to drive.

However, to avoid complications, list frequent drivers on your policy to assure protection, including naming your teenagers that are learning to drive. 

If you use the vehicle for commercial activities or paid car-sharing, consider purchasing additional insurance coverage.

When Car Insurance Goes With the Driver

When you drive someone else's car, protection heavily depends on the consent of the car owner. Should they give you permission and an accident occurs, your Liability and Personal Injury Protection (PIP) will follow you.

However, the owner’s comprehensive and collision insurance will likely be charged first. If the damage is too extensive for the owner's policy to pay for the full repairs, your personal insurance will then be used. People without a vehicle should look into non-owner car insurance to cover liable expenses.   

As a result of this, you should be wary of lending someone else your car. Since your insurance will be used first, an accident can up your premiums. If the cost is too much—but the driver in question doesn’t have sufficient insurance—it will then, ultimately, be your responsibility to pay for the remaining balance.

How to Be Fully Protected

Talk to your agent about your driving habits—including how often you drive someone else’s car or let someone drive yours—to determine gaps in your coverage. They may suggest upping your limits of both liability and comprehensive and collision protection.

Kirk Insurance Agency in Spearman, TX, has provided the Texas panhandle with dependable car insurance for over 40 years. A family-owned and -operated company, they understand the importance of planning for the unexpected—and offer a variety of products to keep you financially protected. Visit their website to learn more about their offerings. Call (806) 659-2794 with questions.