Tuesday, June 18, 2024

Does Insurance Cover The Car Or The Driver

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Multiple Driver Coverage On A Commercial Auto Policy

Does car insurance follow the car or the driver? KBG Insurance & Financial, Insurance Agency.

A commercial auto insurance policy will protect the company as the principal covered party. After all, when anything wrong happens to a company-owned vehicle, the firm will be held responsible for the price of repairs, medical expenses, and accident lawsuits.

Even though the policy may belong to the company, everyone permitted to operate the insured vehicles is also covered. On the one hand, this is advantageous to your business because it enables you to completely insure anyone who may be using one of your vehicles at any given time.

Even if you have a spotless driving record and credit score, your employees might not. As a result, you may now be more likely to experience a higher cost of your commercial auto insurance.

Your commercial auto insurance premiums will depend on several factors, including:

  • Vehicle size and weight
  • History of claims
  • Amount of the coverage bought

Each element affects the likelihood of your business submitting an insurance claim to the insurance provider. For example, the insurance provider will probably charge you more if you have drivers on the policy with a poor driving past because they are more likely to file a claim given their history.

Don’t Be Afraid To Say No

Letting a friend or family member borrow your car may seem like an easy decision, but in reality, there’s a lot to consider. Take some time to review what your insurance policy does and doesn’t cover, and don’t be shy about asking the other driver a few key questions. If letting someone borrow your car puts you in a tough or uncomfortable position, don’t hesitate to say no. It may seem like you’re doing someone a favor at the time, but a crash could easily sever a friendship and set both of you back financially. On the other hand, knowing your car is covered even when you lend it out will save you from unnecessary worriesand save you money if an accident does occur.

What Pip Insurance Covers In Virginia


Damage to other peoples property

Lost income

Injuries from an accident when you were using your car to make money

Survivors loss

Injuries sustained if you were not carrying your states minimum coverage requirements

Household services

Injuries sustained from an accident you caused intentionally

Injuries sustained when hit by a car while walking or biking

Injuries unrelated to a car accident

Is personal injury protection required in Virginia?

No, personal injury protection insurance is not required in Virginia. Virginia drivers are not required to buy car insurance at all. If a driver chooses to buy insurance, Virginia policies have medical payments insurance instead of PIP.

MedPay is available with your Virginia policy. This coverage helps with injuries or rehab that you may deal with after a car accident, even if you cause the accident. In that way, its almost identical to PIP. But unlike PIP, MedPay doesnt usually cover extra categories of assistance like lost wages or household services if youre injured.read full answer

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Does Car Insurance Follow The Driver Or The Car

Car insurance generally follows the car, not the driver, so if someone else gets into an accident with your car, you would file a claim with your insurance, not theirs. When you lend out your car, remember that youre also lending out your car insurance policy with it. But there are some cases where car insurance follows the driver, and the person borrowing your car might need to rely on their own car insurance, assuming they have their own policy.

How Does Insurance Work If Someone Borrows Your Car

Does Auto Insurance Cover the Car or the Driver?

In general, when you borrow a car, you borrow car insurance, too. Insurance follows the car, not the driver. That means if you are involved in an accident while driving someone elses car , the owner of the car will probably be held responsible for any financial damages. Your insurance does not come into play.

If we borrow another persons car, its not common for us to say Hey bro, you have insurance dont you? , but its not a bad idea to ask if we want to avoid a pricey Driving Without Insurance ticket.

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Pip & Insurance In Virginia:

No, drivers are not required to buy any insurance

Minimum coverage for medical expenses

$2,000 of MedPay

National cost ranking

Virginias unique car insurance laws affect the annual cost of car insurance for drivers. For comparison, New Hampshire pay about $1,320 for car insurance every year. Car insurance in New Hampshire is fairly average compared to the rest of the country – it’s a small but densely populated state. Insurance costs a little bit less in Virginia, if drivers choose to buy an insurance policy.

How much car insurance do I need in Virginia?

Drivers in Virginia need $30,000 of bodily injury liability insurance per person and $20,000 of property damage liability insurance. Virginia also requires uninsured motorist protection. UM replaces the liability coverage an at-fault driver shouldve had and pays for your costs up to your policy limits.

If Someone Doesnt Have Auto Insurance Can They Drive My Car

Say your cousin Sally came to town and wanted to take your ride for a spin. Uh oh! She caused an accident and unfortunately Sally doesnt have insurance of her own. Since you granted her permission to drive your vehicle , you could be held liable for some of the damages she caused. If the damages exceed your car insurance limits, the affected party/parties could sue you and your cousin Sally to pay for any medical fees or property damage which may have to be paid out of pocket or from a wage garnishment.

So, keep in mind, if you let someone who doesnt have insurance drive your vehicle, it could be you who is also on the chopping block and paying for damages if they were to get into an accident.

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Why Does Permission Matter With Insurance Coverage

As noted above, whether the person driving your vehicle is permitted to do so makes a difference in the event of an accident. Your car insurance policy outlines who has permission to drive your car and who doesn’t, and some policies may even explicitly state that no one besides you is covered when driving your car. Whether your insurance will cover the person driving your car often comes down to whether they are a permissive or non-permissive user. What’s the difference?

A permissive user has your permission to use your car. This can be explicit permission, such as when a friend asks to borrow your car and you say, “Sure,” or the tacit permission your teenager has to use the family car whenever she needs it, without asking each time.

Typically, you’ll be asked about the other people in your household when you apply for car insurance. Some insurance companies consider all members of your household to permissive users with tacit permission to drive your car at any time. Other insurers require drivers to be listed by name on your policy in order for them to be counted as a permissive user.

The definition of “household members” is usually limited to family members related to you by blood or marriage. If a roommate, housekeeper or other person in your household who’s not related to you regularly uses your car, you can usually list them on your insurance policy by name to ensure they are considered permissive users.

Letting Your Insurer Know

Does auto insurance follow the car or the driver?

Tell your insurance company about the accident as soon as you can, even if you dont want to make a claim. Your policy booklet should have information on how to contact your insurer or have a look on their website.

If possible, have your policy number and any details of the incident handy when you contact them. If you want to make a claim, your insurer will be able to:

  • Register your claim and give you a claim number
  • Talk you through the process, including confirming what youre covered for
  • Let you know what the next steps are and get the ball rolling for you

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Does Car Insurance Cover Hail Damage

Some car insurance policies will cover hail damage. Those with comprehensive auto policies are in luck. Comprehensive policies cover auto damage that doesnt result from a collision or accident. Comprehensive insurance covers damage from events like hail, floods, theft and vandalism.

Hail damage is something to worry about. In 2015, there were 5,412 major hailstorms in the U.S., according to the Rocky Mountain Insurance Information Association , a nonprofit insurance communications organization representing insurers in several western states. Of all 723,743 hail insurance claims in the U.S. from all carriers between 2013-2015, personal automobile hail claims were second in number, with the most claims coming from personal property homeowners.

Cars can sustain several types of hail damage. The severity depends on the hailstone size and the cars location during the hailstorm. Was the car out in the open? Partly covered in a carport? Hail can ding or dent up the car side panels, roof, trunk and hood. It can break windows and the windshield or even scratch the glass.

Hail damage can affect a cars resale value. Usually the panel damage isnt a functional problem but an aesthetic one. For smaller dents and dings, a body shop can sometimes pop out the dents without affecting the paint. For severe or extensive damage, they may recommend replacing car panels. The insurance company and repair shop can advise whats needed on a case-by-case basis.

How Car Rental And Travel Expenses Coverage Works

If you rent from a company in our network, State Farm® will pay them directly. If not, you’ll need to pay the rental fees to start with, but we’ll reimburse you.

Coverage is optional so make sure to ask for this coverage before you need it.

Car rental expense

Pays up to the amount you specify in your policy, when you or a relative who lives with you rents a car while your car isn’t drivable because of damage that would be payable under your comprehensive or collision coverage. Theres a daily and per claim limit to the coverage. If you have a $16 each day/$400 each occurrence limit, State Farm will pay up to $16 each day and up to $400 for each occurrence for your rental vehicle.

Travel expenses

Pays for meals, lodging, and transportation home or to your destination up to $500 per loss if your car isn’t drivable because of damage done more than 50 miles from home that’s covered by your comprehensive or collision insurance. A return trip to pick up your car is also covered.

Repayment of Deductible Expense

Pays up to $500 for the deductible if you have a covered-loss accident in a rental car.

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Does My Car Insurance Cover Me When Driving Another Vehicle

If youre specifically listed on the car owners insurance policy, youll be covered when driving that car even if its not your own. If youre not on the owners policy, applicable coverage will again depend on consent.

Assuming the driver gave you consent to operate the vehicle or, at the very least, there is reasonable belief that you had permission to drive it, then youre probably covered. If you pay to drive the car , then this generally constitutes assumed permission as well.Here are some situations in which you would typically be covered under your auto policy:

  • Driving your parents vehicle with permission, assuming you are not listed as an excluded driver on their policy.
  • Borrowing a friends or family members car with permission while yours is being repaired.
  • Renting a car from a rental car company or the car-sharing marketplace.

Borrowing A Vehicle With Permission

Does Car Insurance Follow The Car Or The Driver?

If you give permission to another driver to get behind the wheel of your car, truck, or SUV, only at that point does the issue of whether insurance follows the driver or the car come into play. Really, the question to ask isn’t whether insurance covers the driver or the vehicle, but simply, does your car insurance cover other drivers when they are behind the wheel of your car?

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The Owner Needs To Give Permission

The non-insured person will likely need the owners permission to drive the vehicle in order to have the coverage extended to them. You dont need to write out a formal letter. Verbal permission is generally good enough.

Also, your coverage may stick with your vehicle if its stolen, even though the thief obviously doesnt have your permission.

Every Case Is Different

Because every auto insurance policy is different, the actual coverage youll have when driving a borrowed car can vary greatly. It will depend on the exact terms of your policy, the state you live in, the driver in question and the type of loss suffered.When it comes to your car insurance, there are coverages that can follow you as the driver, or your vehicle. Thats why having the appropriate car insurance coverage is so important. Contact your insurance agent to review your coverage and make sure youve got the protection you need.

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Does Collision Coverage Insurance Follow The Car Or The Driver

If you are driving someone elses car or truck and you are involved in a crash that results in damage to the vehicle you are driving, then your collision insurance will follow the driver as the collision coverage on your own vehicle and/or the collision coverage on the vehicle you were driving will pay for the damage.

The terms of both your policy and the policy covering the vehicle you are driving will determine which coverage is primary. The insurer whose policy is primary has the duty to pay first before the secondary insurers duty to pay is triggered.

How Much Does Convicted Driver Insurance Cost

Does Insurance follow the Driver or the Vehicle?

Unfortunately, insurance policies for convicted drivers will be more expensive than standard insurance policies for drivers without convictions.

On average, motorists with one driving conviction or more will have insurance premiums that are 80% higher than those without any convictions.

This means that a convicted driver will typically pay around £1,746 a year on average for their car insurance. Drivers without any convictions will typically pay around £967 a year on average.

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Can The Other Drivers Car Insurance Become Involved

If someone with their own car insurance policy borrows your car, their insurance can act as secondary insurance in case damage from an accident exceeds your coverage limits.

Say your friend gets into an accident that causes $60,000 of property damage. If your property damage liability limit is $50,000, then your friends insurance company should cover the extra $10,000 that exceeded your coverage limits.

Similarly, the medical payments portion of your car insurance will generally follow you, even if youre a pedestrian and youre hit by a vehicle. So if the person driving your car has their own insurance and they get into an accident in your vehicle, their med pay coverage could help pay for any injuries.

How An Insurance Company Calculates Premiums

Premiums are the amount you pay to buy insurance.

When determining how much you’ll pay for premiums, insurance companies may consider factors such as:

  • how much you use your car
  • your driving record
  • the type of coverage you choose
  • the amount of your deductible

A deductible is the amount of your claim you agree to pay before your insurance company pays the rest.

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What Else Should Drivers Without A Car Or Car Insurance Consider

If you’re a licensed driver who doesn’t own a vehicle, you likely don’t have a need for a long-term car insurance policy. But, what should you do if you need to temporarily borrow someone else’s car? Here are some points to keep in mind:

  • The car owner’s insurance policy may help provide coverage if you get into an accident.
  • You may be responsible for certain types of damage, depending on the coverages the owner’s car insurance policy includes. For instance, if their policy doesn’t include collision coverage, you may have to pay for the repairs to their car if you cause an accident.
  • You may be responsible for costs that exceed the coverage limits on the owner’s car insurance policy.

If you’re planning to lend your car to a friend or family member, or borrow one from someone else, remember that it’s a good idea to review both of your insurance policies first. Your insurance provider can also help answer any questions about your policy before you decide whether lending your car makes sense for you.

Do You Need Insurance To Rent A Car

Does your insurance cover you to drive a friend

As anyone who has stood at a car rental counter has experienced, its important to know whether you need insurance to rent a car. These arent questions to ponder at the last minute, with the rental car agent ready to add additional daily charges to the rental.

Renters arent alone in their confusion. Some 42% pronounced themselves “thoroughly confused” about insurance coverage when renting a car, according to a survey cited by Lisa Burbank in USA Today.

In general, a personal auto insurance policy does extend to rental cars with the same limits of liability. That includes liability for property and auto damage and collision coverage for rental car damage. The comprehensive portion of the policy takes care of the rental cars damage from non-driving damage, such as hail or theft. Of course, this all depends on the coverages the policyholder chose for the personal auto policy.

What may not be covered by this insurance is the rental car companys loss of use and revenue it claims while the damaged car is being repaired, or a loss in that cars value. Some renters prefer to get the rental car coverage for this reason, as well as to avoid making any claims on their personal auto coverage. Especially when traveling abroad, renters should specifically ask their insurance agents about any available coverage.

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