Jane Dotson
Whether car insurance follows the vehicle or the driver is a complex question that depends on several factors, including the insurance provider, the type of insurance, and the state in which the driver resides. In general, car insurance follows the car and not the driver. This means that if someone borrows your car and gets into an accident, your insurance will likely be responsible for covering the damages. However, there are exceptions to this rule, and it's important to carefully review your insurance policy to understand the specific coverages and exclusions.
| Characteristics | Values |
|---|---|
| Whether insurance follows the car or the driver | Generally, insurance follows the car and not the driver |
| Whether the owner gave permission to the borrower to drive the vehicle | If the owner gave permission, the insurance may cover the borrower. If not, the borrower's insurance may be responsible for the damages and injuries resulting from the accident. |
| Whether the borrower is listed on the owner's insurance policy | If the borrower is listed, the insurance will likely cover them. If not, the owner may be forced to pay the premium that they avoided by not listing the borrower. |
| Whether the borrower is a family member | If the borrower is a family member, they may be covered by the owner's insurance. |
| Whether the borrower is a friend | If the borrower is a friend, the owner's insurance may not cover them. |
| Whether the borrower is an excluded driver | If the borrower is an excluded driver, they will not be covered by the owner's insurance. |
| Whether the borrower is using the car for commercial purposes | If the borrower is using the car for commercial purposes, the owner's insurance may not cover them. |
| Whether the car is rented | If the car is rented, the owner's insurance may not cover the borrower. |
What You'll Learn
The general rule: insurance follows the car, not the driver
While there are exceptions, the general rule is that car insurance follows the car, not the driver. This means that if you give someone permission to use your car, your policy will cover them while driving it if they are in an accident or experience any kind of vehicle mishap. This is known as "permissive use".
However, every policy is unique and is based on multiple factors as well as state insurance law. For example, if you have collision coverage on your car, it may be used to pay for damages to your neighbour's car if they do not have collision coverage and you are in an accident while driving it.
If you are driving someone else's car, the car owner's policy will generally be used to pay claims related to an accident while you are behind the wheel. One exception to this is rental cars, but this depends on your policy and any restrictions on it.
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When insurance follows the driver
In most cases, if a driver is not listed on the car owner's insurance policy, they will still be covered as long as they have permission to drive the vehicle. This is because most auto insurance policies include "permissive use" coverage, which extends to drivers who are not listed on the policy. However, there may be limitations on the extent of coverage provided in such cases.
It is important to note that insurance regulations and policies can vary by state and insurance carrier. Therefore, it is always a good idea to review the specifics of your policy and understand the coverage limits before lending your car to someone else or driving someone else's car.
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Permissive use
There are a few important exceptions to permissive use coverage. If your car is used for business purposes and you don't have a specific endorsement for this on your policy, the insurance company may not cover any incidents. Additionally, if you lend your car to an unlicensed or inexperienced driver and they get into an accident, the insurance company will likely deny coverage.
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Excluded drivers
An excluded driver is someone in your household who has been explicitly removed from your car insurance policy. This can be done by the policyholder or the insurer, and the excluded driver's name will be listed as "excluded" on the policy. Excluding a driver from your policy can help to lower your insurance costs, as the driving record of every licensed driver in your household is taken into account when premiums are set. Risky drivers, such as those with drunk driving convictions, speeding tickets, or poor driving records, can cause your insurance premiums to skyrocket.
If you exclude a driver from your policy, they will not be able to legally drive any of your covered vehicles and will not be protected under your policy. If an excluded driver gets behind the wheel of your car and causes an accident, any damage and injuries will not be covered by your insurance. This means that you or the excluded driver may be held personally responsible for the damage or injuries, and your policy could be canceled or not renewed.
In some cases, an insurer may require that a driver be excluded from your policy due to their terrible driving history or other issues. This allows you to keep the policy for other household members. If the excluded driver has their own car, they can get their own insurance, even if they are considered a high-risk driver.
It's important to note that not all states or insurance companies allow driver exclusions. The following states do not allow driver exclusions: Kansas, Michigan, New York, Virginia, and Wisconsin. Some states also prohibit exclusions in the case of dependents or married couples. Therefore, it's essential to check with your insurance company and understand the regulations in your state before excluding a driver from your policy.
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When to add other drivers to a policy
It's important to add other drivers to your insurance policy when they have regular access to your vehicle. This helps ensure you're protected in the event of an accident. While the process of adding a driver to your policy is fairly simple, it's also important to understand when and how to list them.
- Your spouse or partner: If you get married or move in with your partner, and they will be driving your vehicle, it's a good idea to add them to your policy.
- Teenage or college-aged children: When your children obtain their learner's permit or driver's license and will be using your car, they should be added to your insurance.
- Adult children or parents moving back in: If your adult children or parents are living with you and will be using your household car, consider adding them to your policy.
- Roommates: If you share a car with your roommate, they should be added to your insurance policy.
In addition to the above, you may also want to consider adding friends or other relatives who regularly drive your vehicle to your policy. It's worth noting that the cost of adding a driver can vary depending on their relationship to you, age, driving history, and other factors.
It's always a good idea to review your insurance policy and consult with your insurance agent to ensure you have the appropriate coverage for all drivers using your vehicle.
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Frequently asked questions
Car insurance generally follows the car, not the driver. This means that if you give someone permission to use your car, your policy will cover them while they’re driving.
A listed driver is someone who is named on the policy and is covered by the policy at whatever limits are set. A permissive-use driver is someone who is not listed on the policy but has been given permission to use the vehicle.
An excluded driver is someone who has been explicitly excluded from your policy, usually a high-risk driver with multiple infractions or DUIs. If you allow an excluded driver to use your vehicle, neither the driver nor the car will be covered.
If someone else gets into an accident while driving your car, your insurance will usually be responsible for paying for any damages. However, if you specifically excluded the driver from your policy, your claim may be denied.
