Understanding Insurance Coverage: Driver-Centric Policies Explained

Whether insurance follows the car or the driver is a complex question that depends on several factors. In general, car insurance is linked to the car and not the driver, but there are exceptions. For instance, in New York, car insurance includes coverage for other drivers of your vehicle, and some states allow you to exclude specific individuals from your policy. The type of coverage also matters, as liability insurance typically covers the car, while comprehensive and collision insurance may cover the driver. Additionally, the state you live in, the driver in question, and the type of loss suffered all play a role in determining whether insurance follows the car or the driver.

Car insurance typically follows the car, not the driver

The specifics of whether car insurance follows the car or the driver vary depending on the insurance company, state, and the individual policy. For example, in New York, car insurance includes coverage for other drivers of your vehicle, whereas in other states, you can exclude specific individuals from your auto insurance policy, especially those with poor driving records.

It's important to note that if someone borrows your car without your permission ("non-permissive use"), their insurance may be responsible for any damages or injuries resulting from an accident. Additionally, if the driver has their own collision coverage, their policy may not cover damages to your vehicle. Therefore, it's crucial to understand the terms of your policy and any applicable state laws before lending your car to someone else.

While car insurance typically follows the car, there are instances where insurance will cover the driver. For example, when renting a vehicle for personal use, your insurance on your own car may provide coverage. Additionally, if you purchase a new car, it may not be immediately added to your policy, so your insurance will follow you as the driver until the switch is made.

Permissive use: insurance may cover those who borrow your car

In most states, car insurance follows the car and not the driver. This is known as "permissive use", which means you give someone who isn't listed on your car insurance policy permission to operate your vehicle. Permissive use typically covers drivers who are not specifically covered by name or as a household member. This includes friends or extended family members. However, it is important to note that permissive use does not apply to people who drive your car regularly or for an extended period. In such cases, the driver should be added to your policy.

If a permissive user is involved in an accident, your auto insurance may pay for the damages and injuries, up to your coverage limits. However, if the driver is also insured, their auto insurance could pay out as well, depending on their policy and the details of the accident. It is worth noting that permissive use does not apply to unlicensed or inexperienced drivers. If you lend your car to an unlicensed or inexperienced driver, your insurance company will likely deny coverage.

The coverage provided by permissive use can vary depending on the insurance company and the specific policy. Some policies that cover permissive use may offer limited coverage or require higher deductibles for claims made by permissive users. It is important to carefully review your insurance policy to understand the extent of coverage provided for permissive users. Additionally, permissive use typically does not cover business use of your vehicle unless there is a specific endorsement for it in your policy.

While permissive use can provide coverage for drivers who are not listed on your policy, there are exceptions. If a driver uses your car without permission, it is considered "non-permissive use", and their insurance may be responsible for any damages and injuries resulting from the accident. Furthermore, if your vehicle is involved in an accident caused by another driver, the at-fault driver may be held responsible for the claim.

In summary, permissive use allows your car insurance policy to cover drivers who are not listed on it, as long as they have your permission to use your vehicle. However, the extent of coverage can vary, and there are situations where permissive use may not apply. It is important to understand the specifics of your insurance policy and the applicable state laws to ensure proper coverage in the event of an accident.

Non-permissive use: insurance may not cover those who use your car without permission

In most cases, car insurance follows the car and not the driver. This means that if you give someone permission to drive your car, your auto insurance may pay for the damages and injuries, up to your coverage limits. This is known as "permissive use". However, non-permissive use refers to situations where someone borrows your car without your permission, and your insurance may not cover the accident. In this case, the driver's insurance may be responsible for the damages and injuries resulting from the accident.

Permissive use allows unlisted drivers to have insurance coverage while driving a policyholder's vehicle. The unlisted driver must have the policyholder's implied or expressed permission for the coverage to apply. Expressed permission is verbal or written, such as when someone asks to borrow your car and you give them permission. Implied permission is generally based on past behaviour, the relationship between the people involved, or the lack of objection from the policyholder. It's important to note that permissive use has exceptions, exclusions, and costly repercussions, so it's essential to know if your insurance company allows it and what it means for your policy.

The people who are specifically listed on an insurance policy are called "named insured". Liability policies typically cover named insured individuals no matter what car they are driving. Spouses of the named insured are usually covered on liability policies, even if they are not specifically listed on the policy. It's worth noting that some policies that cover permissive use may provide only limited coverage or require increased deductibles in the event of a claim. Therefore, it's crucial to carefully review your insurance policy before lending your car to someone else.

In some states, you may be required to list any drivers living at your permanent residence, regardless of how often they drive your car. Even if they don't live with you, they should be added to your policy if they use your vehicle regularly. A driver who lives in your household and is not listed on your policy may be denied coverage if they borrow your car and are involved in an accident. It's also important to note that unlicensed or inexperienced drivers are typically not covered by permissive use.

To summarise, non-permissive use refers to situations where someone borrows your car without your permission, and your insurance may not cover any resulting accidents. In such cases, the driver's insurance may be responsible for the damages. It's crucial to understand the terms of your insurance policy and any applicable state laws to ensure you have the necessary coverage.

In New York, car insurance includes coverage for other drivers of your vehicle

In New York, car insurance typically includes coverage for other drivers of your vehicle, following the car rather than the driver. This means that if someone else crashes your car, your insurance will cover them under most circumstances. This applies to collision, uninsured motorist protection, comprehensive, personal injury protection (PIP), and property damage liability insurance.

In New York, you are required by law to carry property damage liability coverage and personal injury protection (PIP) insurance. PIP coverage provides financial coverage if you and any passengers in your vehicle are hurt in an auto accident, including medical expenses, funeral expenses, and related costs. To meet New York State minimums, you must have PIP coverage of $50,000 or higher. Your PIP policy can cover a family member or anyone else in the car with you.

Additionally, the liability policy for the car should cover your other losses, including bodily injury. In a no-fault insurance system, injured parties typically file claims with the insurer who covered the vehicle they were in at the time. This means that you will file a no-fault application with your own coverage or your vehicle's coverage, and not typically with the vehicle that caused the accident. If you were in a borrowed car at the time of the crash, your PIP or No-Fault coverage would come from the car you were driving.

It's important to note that insurance coverage can vary from insurer to insurer and policy to policy. While car insurance generally follows the car, there may be situations where your policy does not cover an accident caused by another driver. For example, if the driver borrowed your car without permission (known as \"non-permissive use\"), their insurance may be responsible for the damages. Additionally, if another driver causes an accident but is not at fault, the at-fault driver may be responsible for the claim.

In New York, you cannot buy an auto insurance policy if you try to exclude a member of your household who is of driving age. However, you may be required to list any drivers that live at your permanent residence, regardless of how often they drive your car. It's always a good idea to review your insurance policy and understand the specific coverages and limitations to ensure you have the protection you need.

Insurance coverage varies from insurer to insurer and policy to policy

Whether insurance follows the driver or the car depends on the insurer and the policy. While car insurance generally follows the car and not the driver, there are coverages that can follow you as the driver or your vehicle. This means that, in some cases, you can be covered when driving someone else's vehicle, and your insurance will also protect them in case of an accident.

In the case of permissive use, where you give permission to someone not listed on your policy to drive your car, your insurance may cover the damages and injuries, up to your coverage limits. However, if the driver is also insured, their auto insurance could also pay out, depending on their policy and the accident details.

The actual coverage you have when driving a borrowed car or lending one to someone can vary greatly depending on the exact terms of your policy, the state you live in, the driver in question, and the type of loss suffered. For example, liability coverage will generally extend to the car, but comprehensive insurance coverage and collision insurance coverage may not.

It is important to understand the ins and outs of each coverage type to choose a plan that fits your needs. Car insurance policies can be standard, customized, or bundled, and they can include liability, comprehensive, collision, and more. Basic coverage typically includes liability and essential protections, while full coverage combines liability, collision, and comprehensive coverages for extensive protection. Specialized coverage is tailored for specific needs, such as classic car insurance or rental car insurance.

Additionally, some states allow you to exclude specific individuals from your auto insurance policy, particularly those with poor driving records or a history of drunk driving. In contrast, other states may require you to list all drivers living at your permanent residence, regardless of how often they drive your car.

Frequently asked questions