Vehicle Or Person: Who's Insured?

Whether a vehicle or a person is insured depends on several factors, including the names on the auto insurance policy, the state in which the driver lives, and whether the owner gave the borrower permission to drive the vehicle. In general, car insurance follows the car, meaning that if someone borrows a car and is at fault for an accident, the policy's liability coverage will cover them. However, there are instances when car insurance follows the driver, such as when renting a car.

If you lend your car to a friend, is your insurance valid?

If you lend your car to a friend, your insurance will likely remain valid, but this depends on a few factors.

Firstly, it depends on whether you gave your friend permission to drive your car. If you did not give them permission, your insurance will probably not cover them. If you did give them permission, your insurance will likely be valid, but you should still check your individual policy to make sure.

Secondly, it depends on whether your friend is an excluded driver on your policy. Excluded drivers are usually family or household members that you choose to exclude from your policy, perhaps because they are a “high-risk driver" with several accidents or a DUI on their record. If your friend is an excluded driver, your insurance policy will not cover them.

Thirdly, it depends on the circumstances of the accident. If your friend is at fault for the accident, your insurance will likely cover the damage to the other driver's car and any injuries they sustain. However, damages to your own vehicle will not be covered unless you have collision coverage. If your friend is not at fault, the at-fault driver's insurance should cover any damages to your car and any injuries your friend sustains.

Finally, it is worth noting that lending your car to a friend could have implications for your insurance rates. If your friend gets into an accident while driving your car, this could cause your insurance rates to increase, even if they are not at fault. Therefore, it is important to use good judgment and only lend your car to friends you trust to drive safely.

Does insurance cover the driver or passengers of a rental car?

When it comes to rental cars, your regular auto insurance often covers rental vehicles too, dealing with mishaps and damages. However, this safety net usually blankets personal use, not work-related ventures. It is important to dive into the nitty-gritty of your policy and spot any potential gaps before you start thinking about extra rental coverage.

If you have liability, collision and comprehensive insurance on your own vehicle, you will already be protected, at least up to the policy's limits, for most of the coverages that are typically offered by rental companies. If you have a homeowners, renters, or condo policy, any personal belongings you keep in a rental car should be covered too.

If you don't have a personal auto policy, you will need to purchase liability coverage through the rental car company. You will also have the option to add additional coverages, including collision and tire damage.

Rental car insurance usually includes:

• Liability: Covers you for damages or injuries you cause while driving the rental.
• Loss/collision damage waiver: A loss-damage waiver (or collision damage waiver) releases you from responsibility for damage that occurs to the rental car, including theft and vandalism.
• Personal accident insurance: Personal accident coverage protects against injuries to you and your passengers while driving a rental car.
• Personal effects coverage: Personal effects coverage covers your personal items if stolen from a rental car.

If your personal auto policy includes liability, comprehensive, collision, and medical payments/personal injury protection, then you may not need rental car insurance.

If you are a frequent traveler but don’t own a car, you can also get non-owners car insurance to cover you in all driving situations.

Does insurance cover the driver if they have express permission to drive your car?

Whether or not a driver is covered by insurance when they have express permission to drive your car depends on several factors. These include the names listed on the insurance policy, the state where you live, and whether the driver has permission to drive the car.

In general, car insurance follows the car and 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 get into an accident or experience any kind of vehicle mishap. This is known as "permissive use". However, it's important to note that every policy is unique and based on multiple factors, including state insurance law.

Your car insurance will typically cover other drivers operating your vehicle if they are listed on the policy. This may include your spouse, parents, siblings, children, or other household members. For people not listed on your policy, such as friends or extended family members, coverage depends on consent. If you have given them permission to drive your car, either verbally or by handing them the keys, they will typically be covered under the terms of your policy.

In certain situations, drivers who are not on your policy might also be covered. These include when extended family members are visiting or staying with you, when sharing the driving responsibility on a road trip or long drive, or when friends or family members borrow your car while theirs is being repaired.

However, there are also scenarios in which certain drivers and activities will generally not be covered by your policy. For example, your insurance will usually not extend to other drivers if they are paying to use the car, such as in a car-sharing arrangement. Excluded drivers, those specifically listed on the policy as not covered, will typically not be covered when driving your car. Commercial activities, such as using the vehicle for delivering items or ride-sharing, will also typically not be covered by your insurance policy.

If you are unsure whether your insurance covers another driver with express permission to drive your car, it is best to review your policy documents or contact your insurance agent for clarification.

Does insurance cover the driver if they are paying to use the car?

Whether a driver is covered by insurance when paying to use a car depends on several factors, including the names on the auto insurance policy, the state where the driver lives, and whether the owner gave the driver permission to drive the vehicle.

In most cases, car insurance follows the car, not the driver. This means that if someone borrows your car and gets into an accident, your insurance will likely cover the damages, and your insurance rates will probably increase. However, if you are listed on the car owner's insurance policy and have permission to drive the car, you will likely be covered by the owner's insurance policy.

It is important to note that if you are paying to use a car through a car-sharing service, your insurance policy will typically not cover you, and you will need a separate policy or supplement. Additionally, if you are using the vehicle for commercial purposes, such as delivering pizzas or ride-sharing, your insurance policy will generally not cover you.

To ensure that you are properly covered, it is recommended to review your insurance policy carefully and consult with your insurance agent about your specific situation.

Does insurance cover the driver if they are unlicensed?

Whether or not an unlicensed driver is covered by insurance depends on the insurance company and the policy. While some policies cover all drivers, even if they are unlicensed, others have built-in exclusion clauses that limit coverage to specific individuals.

In the US, some states require at least one licensed driver to be listed on the policy. In such cases, the unlicensed driver can be listed as an excluded driver, meaning the insurance company won't cover any claims if the unlicensed driver uses the vehicle.

If the unlicensed driver has the owner's permission to drive the car, the owner's insurance policy will typically cover accident-related expenses. However, this may not be the case if the driver goes beyond a permitted area or breaks certain laws, such as driving without a license.

It is important to note that insurance laws and policies vary from state to state, so it is always a good idea to direct specific questions to your insurance company.

Frequently asked questions