Does Car Insurance Follow the Car or the Driver?
Why You Can Trust EverQuote
EverQuote powers millions of shopper requests every month, teaming up with industry-leading insurance specialists to address real-world challenges faced by people every day. We partner with the largest insurance providers in the nation, and our content is carefully crafted by experts and reviewed by licensed insurance agents for accuracy and relevance.
Does insurance follow the car or the driver? It is essential to understand how car insurance coverage works, especially when multiple drivers use the same vehicle.
When it comes to your auto insurance policy, car insurance typically follows the vehicle. However, there are exceptions to the rule. Liability coverage, collision coverage, and comprehensive insurance usually stay with the car, no matter who is driving. Coverage limits can come into play when lending your car as well. This comprehensive guide to "does auto insurance follow the car or driver?" will cover scenarios where insurance follows the car and the driver, as well as state laws, permissive use, and accident forgiveness.
When Car Insurance Follows the Vehicle
Does car insurance follow the driver or the car? Your auto insurance policy will generally follow the car, even if someone else is driving it, as long as that individual is listed on your insurance policy or has been given permissive use to drive your car. If someone takes your car with non-permissive use, on the other hand, the vehicle will not be covered.
The coverage you select from your insurance company also plays a role:
- With liability car insurance, your costs and legal fees will be covered if your car is in an accident that causes property damage or bodily injury.
- If you have collision insurance coverage, your repair costs will be covered if your car is damaged in an accident.
- And with comprehensive coverage, your repairs will be covered if your vehicle is damaged in something other than a car accident, such as theft, vandalism, or weather incidents.
When Car Insurance Follows the Driver
There are exceptions to every rule, and sometimes car insurance follows the driver instead of the vehicle.
Here are some occasions where insurance might follow the driver:
- Permissive use: If you get in an accident while driving someone else's car, your liability coverage might protect you if the owner's insurance coverage limits are exceeded. This only applies if you have permissive use to drive the car.
- Rental cars: If you rent a car and get in an accident, your car insurance will generally cover you.
- Personal injury protection: Some state requirements include personal injury protection or PIP coverage, which follows the driver and can cover your medical expenses following an accident.
Permissive Use Explained
When it comes to auto insurance, permissive use is when you give permission to drive your vehicle to someone not on your insurance policy, or you get permission to drive someone else's car when you're not on their policy. This applies whether you are in the car when it gets in an accident or not.
Non-Owned Vehicle Coverage
Much like it sounds, non-owned vehicle coverage features liability protection for businesses or individuals who drive vehicles that they do not own. It can cover rental cars, work vehicles, or when employees drive their own cars for work purposes. Non-owner car insurance includes the cost of damages or injuries to others, but it does not include damage to the vehicle or the driver's injuries.
Common Exceptions and Policy Details to Watch For
In addition, there are several exceptions and policy details to pay close attention to:
- Excluded drivers: You can explicitly remove someone from your insurance policy. If the excluded driver then gets behind the wheel and causes an accident, your insurance coverage will not cover damages or liability. Families sometimes choose to remove high-risk drivers or those who have had multiple accidents to reduce policy costs.
- Unlicensed drivers: Clearly, no one should be driving a car without a license. However, if an unlicensed driver gets in an accident with your vehicle, they will likely face fines and penalties, and your insurance company may not cover the damage.
- Drivers without permission: Drivers with non-permissive use who get in accidents will likely not be covered, and the same may go for damage to your vehicle.
It is best to avoid these circumstances if at all possible.
How State Laws Impact Coverage Rules
It is critical to pay attention to state laws, which can impact car insurance needs across state lines.
Most states require some form of car insurance for drivers, and some insist that drivers take out additional protection in the form of personal injury protection or uninsured/underinsured motorist coverage. Make sure you have the coverage you need to drive in your state.
In addition, each state's insurance department has the authority to regulate policies as a form of consumer protection. Ongoing changes in state laws and procedures can impact everything from the cost of your insurance to limits.
Get Customized Car Insurance Quotes for Your Needs
EverQuote offers customized car insurance quotes, no matter where you live and how often you drive. The right car insurance can protect you and anyone else who drives your vehicle.
Visit EverQuote today for a free car insurance quote. It only takes a few minutes and can save you time, money, and energy when it comes to insurance.
FAQs
What is permissive vs non-permissive use?
+
When do I have to add someone to my car insurance policy?
+
Will my insurance cover me if I drive someone else’s car?
+
If someone borrows your car and gets in an accident, are you liable?
+
Premiums are sourced from over 30,000 zip codes across 200 insurance companies. We estimate premiums based on public filings for policies seeking 50/100 in liability with $500 deductibles for collision and comprehensive coverage. Estimated rates are based on a 35-year-old single female with a good credit score and no history of accidents or violations driving a 2023 Toyota RAV4 LE. We partner with Quadrant Information Services to source our data and assume no unique benefits or discounts are applied for these rates (unless otherwise stated). Your own rates may be different.