Does Car Insurance Stick with the Car or Me?
You are getting ready to leave on your family vacation and you are all deciding who is going to take turns driving. Mom says the car insurance follows the car so anyone who a=has a license can drive, but dad says the car insurance follows the person so only those that are insured are allowed to drive. Everyone wants to get going and drive but who is right?
Well, they both are in some cases! Usually, car insurance follows the car but sometimes the car insurance will follow the driver!
Does the Car Insurance Cover Other Drivers?
On average the car insurance will follow the car so if you want to drive mom and dad's car and you have a license you can drive it. Just like anything regarding laws and cars the laws vary by each state and each insurance though. A quick call to your insurance and maybe even your DMV will give you the exact answer you need. It may seem a little time consuming but because each state has different rules it would be best to call and double-check even if you think you know the right answer. Better safe than sorry right?
You may even need to get permission from the owner of the vehicle to drive the car and be added to their insurance policy as a driver of the vehicle. This is usually a simple thing to do and requires just the license number of the person driving but again your insurance company will let you know exactly what needs to be done.
You generally can even just give verbal permission to the new person that will be driving your car. The only downside to your insurance sticking with your car is that if it is stolen the insurance will even cover the thief! You obviously didn’t give them permission to take your car, but they would still be covered if an accident occurred.
Who Can Be Listed as A Driver?
Generally, if a person is not regularly driving your vehicle, like a friend from out of state for a week then they may not need to be listed as a driver on your policy. On the other hand, if your roommate borrows your car regularly o gets groceries or go to work then your insurance company may want them on a list that says who is driving your car regularly and who is not.
If you do not know what your insurance company considers a regular driver check your policy or call your insurance agent. They can help you understand your policy as well as add rivers that you want on your driver's list so everyone can drive safely.
Is there an excluded list?
For some insurance companies there can be an excluded drivers list. This means people that should not be driving your car or are not allowed to drive your car. Just like some insurance policies include a list of people who are going to be driving the car regularly, they will and can make a list of people who are not allowed to drive your car at all. It's great to check with them just in case someone wants to take the car that isn't allowed to drive it.
If a person on your excluded list gets in an accident or the car is damaged while they are driving your coverage doesn’t extend to them. This means that they could get a fine or get their license suspended as well as have to cover costs out of pocket because they were driving without verified and legal car insurance.
What Are the Types of Auto Insurance and Coverage Options Available?
Here are the types of car insurance that covers the car and other drivers who are not on the cars insurance policy:
- Comprehensive: comprehensive insurance covers damage to the vehicle while you are not driving
- Collision: collision insurance covers damage to the vehicle when in an accident or it hots something like a wall or rail while driving
- Liability: liability covers the other person's medical costs and damages in case of an accident
Here are the types of insurance that cover the driver if they are driving another car:
- Liability: Liability covers the other person's medical costs and damages in case an accident has occurred
- MedPay: Medpay covers your medical bills if you have been in an accident
- PIP: PIP or personal injury protection works along with MedPay, it may also cover things like therapy and lost pay wages
As you can see there are a lot of different answers to who is covered by insurance. There are even lots of different types of insurance that you can get! Some states require different types of insurance and others don’t. There are even approved and excluded drivers list. Check your insurance policy to see what is covered and what isn't and if you still have questions about your policy don’t be afraid to call and ask your insurance company to explain things to you!