What Does Comprehensive And Collision Coverage Exclude And Is It Mandatory
Both comprehensive and collision coverage are optional except in cases where the vehicle is leased or there is an auto loan. While they are often together in a package, comprehensive and collision can be bought separately. As for stipulations for comprehensive and collision, another driver might not be covered in an accident if they are not listed as a covered driver. Family members are typically included in the policy, but insurance does not cover someone who does not have the owner’s permission to drive the vehicle.
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- Your car insurance will cover your car
- Your car insurance can cover you in another vehicle
- An exception to your car being covered when someone else is driving is the other driver not acquiring your permission
- Another exception is a household member driving and not being listed on your policy
A common question involving car insurance is this: does car insurance follow the driver or the car?
Read on to learn all of the nitty gritty details for this frequently-asked question.
When Does Car Insurance Not Follow The Car
There are some exceptions to the rule that your car insurance follows your car, though. If you lend your car out to a driver without a license, or to someone who then drives it under the influence of drugs or alcohol, your insurance may not cover damage from an accident they cause. Other times when your car insurance doesnât follow your car include:
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The Coverage Limits Of The Person Who Lends The Car Have Been Reached
In the case where the amount needed to repair damage from a collision exceeds your insurance policy’s “limits”that is, the maximum amount the policy will pay for repairsthen the driver’s coverage policy might have to step in to cover what yours can’t.
Of course, this only applies to situations where the driver’s coverage limits are higher than the car-lender’s coverage limits.
Medical Payments And Personal Injury Protection Follow The Driver
Medical Payments and personal injury protection follow the driver. The medical coverage benefits are based on people, not the insured vehicle, so the coverage in these parts of your policy can move with you and your family if you’re driving or riding in your own vehicle or someone else’s.
Your PIP and MedPay coverages pay out no matter who is at fault for your injuries and, depending upon the terms of your coverage, may even follow you when you’re walking or biking.
Medical coverages through your auto insurance policy can also follow the car. If your passengers don’t have medical coverage of their own, your MedPay or PIP coverages can extend and pay, up to your limits, if occupants of your vehicle are injured in an accident.
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Insurance Coverage And Permissive Use
Whether the driver is covered under your auto insurance policy depends on your specific policy. However, in general, anyone who lives in your house will be covered by your insurance policy when driving your vehicle. In fact, many insurance companies require that everyone in your household of driving age is listed on your policy.
In most cases, a friend who youve let use your vehicle is also covered under your auto insurance policy. The permissive use provision covers those who might borrow your car on occasion.
What If You Want To Borrow Someones Car
If you are planning to borrow a trusted relative or friends car, its important to have the same discussion as if they were borrowing your car. Double check the car is insured to make sure you dont get stuck with the bill and legal charges if a collision happens. Ask if their insurance policy includes province-mandated liability insurance as well as collision and comprehensive coverages.
When you let someone borrow your car, it means youre letting them borrow your insurance. If someone asks to borrow your car, make sure they understand the responsibilities that come with it. If youd like more information about borrowing cars and insurance policies, you can contact one of our licensed insurance advisors.
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Does Automobile Insurance Follow The Car Or The Driver
There are a few questions in life that are more confusing than their answers. The blanket query into whether or not insurance follows the car or the driver in a particular jurisdiction is such a question one we see regularly. It isnt a dumb question. It is more like a MENSA brain teaser than a legitimate insurance question, and it is usually the wrong question to ask.
The answer to whether insurance follows the car or driver depends on many variables, most notably the kind of insurance coverage being referred to. There are coverages that follow the car and coverages that follow the driver. In general, auto insurance follows the car instead of the driver, but the specifics of a claim can differ since insurance laws and coverage vary depending on the policy, coverage and state being dealt with.
Liability insurance coverage on a personal auto policy follows the driver no matter whose vehicle is being operated, provided it is an eligible vehicle. All states, except for one , require at least liability coverage. Liability coverage protects the insured when the insured operates a vehicle owned by someone else. In such a situation, they will still usually be covered under their own auto insurance policy. However, the best rule of thumb in looking for coverage under a policy is to begin with the exclusions.
Comprehensive and Collision
Other Drivers Driving the Insureds Vehicle
The Insured Driving Someone Elses Vehicle
Med Pay and Bodily Injury Insurance
What Happens If They Get Into An Accident With Your Car
If they cause a collision when driving your car, they most likely will be asked to show proof of your insurance. The accident could increase your insurance premium. It will be your insurance and not the borrowers, which will make the claim and might have to pay for any damages to the car itself. You will be penalised as an unsafe driver, despite you not actually being the driver at the time. Remember: insurance follows the car.
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What If Someone Borrows Your Car Regularly
If someone borrows your car on a regular basis, they should be included as an occasional driver on your insurance policy. You shouldnt let someone borrow your vehicle on regular basis without naming them on your policy. If an occasional driver isnt listed on your policy and they get into a collision, an accident claim could be denied because you didnt disclose all the drivers who frequently drive the car. With Desjardins Insurance, you can simply add a driver online with Online Services.
Collision And Comprehensive Coverages Follow The Car
Your friend may have collision coverage of their own, but it doesn’t apply to your vehicle. This is because it wouldn’t be fair for his insurer to have to pay for the total loss of a luxury vehicle if their auto insurance premiums are based on a compact car.
Your friend may get surcharged by their own insurance company for any ticket that lands on their driving record, but the claims for your car go through your policy.
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What If The Driver Is From Another State
In most cases, if the driver has permission, insurance will cover a driver from any state, but that is not always the case. It depends on policy terms and auto coverage. If the insured has MedPay or PIP coverage, and is driving a commercial or company vehicle, then that coverage will be primary. MedPay follows the driver, as does PIP.
Does Texas Car Insurance Cover The Car Or The Driver
Its not an uncommon scenario: Your car is at the mechanics shop being repaired and your mother-in-law has offered her car to you until yours is road-ready again. Or youre home from college for a visit and want to meet some friends, but you left your car on campus. In any situation, should you borrow someone elses car or let someone borrow yours? Would you still be covered if you do? What happens if you or they are in an accident?
As a driver, there are times when you may find yourself in a position of driving someone elses vehicle or lending your vehicle to someone temporarily. Regardless of the scenario, there are some things you need to know. Are you protected in case of an accident? Does your insurance follow the car or the driver?
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Adding Other Drivers To Your Car Insurance Policy
Your insurance provider will want to add a regular, but occasional, driver to your policy. A friend who borrows your car once every few months will not need to be named on your policy. However, a friend who uses your car every Monday to do their shopping is a regular driver. Inform your insurer to ensure coverage. If you add them, know their personal information and driving history is required. Also, if your insurer views their driving risk escalates the risk, expect to pay more to cover additional named drivers. Again, if the premium goes up, evaluate a few new auto insurance quotes since different auto insurance providers will weight this differently.
Filling Out An Application
You will have to provide some information when you apply for auto insurance. The insurance company uses the information to decide if they will insure you and for how much.
- How you use your car, such as for business, commuting to work, or family trips
- How many miles you drive in a year
- The years, makes, models, and vehicle identification numbers for all cars in the household
- The amount you paid for the car
- The insurance requirements if you have a loan or lease
- How long you have been driving
- The names, ages, marriage status, and driver’s license numbers for all drivers in your household
- The driving record for all drivers in your household including accidents, insurance claims, and tickets for moving violations, but not parking tickets
- Most insurance companies will order a Motor Vehicle Report from the DMVthis is the state’s official record of your accidents, traffic violations, and suspended licenses
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Does Auto Insurance Follow The Car Or The Person
Auto insurance is a set of coverages that protect you and your car in different situations that can potentially occur when driving. Some of these protections are designed to follow the vehicle whether you are driving or not. But there are a few times when your insurance can follow you when you drive a car unlisted in your policy.
When You Rent A Car
Depending on your policy, your car insurance may extend coverage to rental cars. That means if you get into an accident, your car insurance liability coverage will cover you in the same way it would if you were driving your own car â paying out for any damage or injury that youâre liable for. And your policyâs collision and comprehensive coverage may cover damage to the rental car itself.
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Can My Child Drive My Car Without Insurance
If theyre living at home, you should be sure to include them as a driver on your policy because if they are not, and they get into an accident, you run the risk of them not being covered.
Your agent can add your teen driver to your existing policy so you wont have to worry about whether your teen is covered or not. Even though insurance follows the car, household members who are regular drivers should always be listed on the policy to ensure optimal coverage.
If you have the MyAmFam app, you can easily add or remove a driver from your policy to ensure your teen is covered under your insurance. Download the MyAmFam app today.
The Drivers Insurance Usually Plays A Role
In most situations, the drivers insurance plays a role regardless of whose car they are driving and who caused the accident. That is true regardless of whether a state has at-fault or no-fault laws because no-fault insurance only applies to medical payments. So fault still matters for property damage, at least, and the at-fault party needs to pay up.
However, the drivers insurance can end up being negligible. If you are insured and you cause an accident in a friend’s car, the primary coverage is their insurance, not yours. Instead, your car insurance is the secondary source of coverage. If your friend’s coverage is exceeded by the collision, your insurance picks up the slack.
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Liability Coverage And California Law
Liability coverage helps pay for injuries or damage to others when you are responsible. If you own and drive a vehicle, you must follow the financial responsibility laws in the state Vehicle Code. The most common way to do this is to buy auto liability coverage.
Liability coverage does not pay for injuries to you or the people in your family. You can buy medical payments coverage for you and your family.
If I Am Injured In An Accident Does My Health Insurance Pay Anything
Usually, your health insurance pays for your immediate medical care. Then your health insurance company will typically try to get back money from your auto insurance or the other person’s auto insurance.
When one insurance company tries to get money back from another insurance company, it is called subrogation.
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Lending Your Car To An Uninsured Driver In New Jersey
Essentially, if you give someone permission to drive your vehicle and they are in an accident, your auto insurance would be the primary coverage, but your friends automobile insurance would serve as secondary coverage, that is if they have coverage. If they are uninsured, you would be liable for all of the damages. Simply put, the vehicle driven by the at-fault driver is covered by the insurance policy on the car. Insurance follows the car, not the driver.
You Have Insurance But The Car Owner Does Not
As long as you have permission to drive this car, then you should be covered. Your policy extends to this car and covers you the same way as if you were driving your car. Damages you cause to others’ cars, property, or even injuries are covered. If you have collision, damages to the car are covered. Collision is an optional coverage, but most drivers do add it.
Next up: If you’d like to receive payment for the damages, contact your insurance company to file a claim.
See more on what collision insurance covers.
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Talk To The Department Of Insurance
We are the state agency that regulates the insurance industry. We also work to protect the rights of insurance consumers.
Contact the California Department of Insurance :
- If you feel that an insurance agent, broker, or company has treated you unfairly.
- If you have questions or concerns about insurance.
- If you want to order CDI brochures.
- If you want to file a request for assistance against your agent, broker, or insurance company.
- If you are having difficulty opening a claim with your insurance company.
- To check the license of an agent, broker, or insurance company.
Introduction To Auto Insurance
Auto insurance helps pay for the injuries and damage that can happen when you own and drive a car or other motor vehicle. This brochure can help you compare policies and make informed decisions when you buy auto insurance. It can help you understand your auto policy. Your policy is a legal document, and it is important that you understand it. Your motor vehicle may be an auto, truck, van, motorcycle, or another kind of private passenger vehicle.
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Leslie Kasperowicz holds a BA in Social Sciences from the University of Winnipeg. She spent several years as a Farmers Insurance CSR, gaining a solid understanding of insurance products including home, life, auto, and commercial and working directly with insurance customers to understand their needs. She has since used that knowledge in her more than ten years as a writer, largely in the insuranc…
Written byLeslie Kasperowicz Farmers CSR for 4 Years
Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his familys insurance agency, FCI Agency, for 15 years . He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. Hes also been featured on sites like Reviews.com and Safeco.He reviews content, ensuring that ex…