Does Auto Insurance Follow the Car or Driver?

It can get quite confusing to tell whether auto insurance follows the car or the driver, especially because both the car and the driver are registered while purchasing the auto insurance. So, does that mean auto insurance follows both the car and the driver?

Well not necessarily, in fact in most cases it follows the car. Even if you think of it from a logical perspective, when you’re getting auto insurance, you’re typically insuring the car, not yourself.

Now, if you drive someone else’s car, do you get covered by your own auto insurance policy, or is it covered by their policy? Also, what happens when someone else borrows your vehicle? Does your auto insurance cover them?

Well, to answer these questions, this article provides an in-depth discussion. The answer here is not entirely straightforward, there are conditions, and various other factors that particularly determine whether your auto insurance follows the car or the driver.

Does Auto Insurance Cover the Driver or the Car?

Most of the auto insurance coverage is designed to financially protect the car. Typically, by default it is the car that’s being covered. However, there are conditions, and circumstances that may extend coverage to the driver as well.

So, that’s why it’s important to precisely know when the car insurance follows the car, and when the car insurance follows the driver as it can widely vary based on multiple factors, and your insurance policy’s terms and conditions.

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When Does Auto Insurance Cover the Car?

If you look into different types of auto insurance coverages, starting from liability insurance to collision and comprehensive insurance, these coverages are typically designed to cover the car, and here’s how.

• Liability Insurance Coverage: Whether you’re driving the car, or if it’s someone driving your car under permissive use, and if there’s an accident in which either you are responsible for the accident, then the liability insurance will cover the other driver who may have sustained bodily injuries along with vehicle repairs and property damage. So, this means the liability insurance coverage typically follows the car, not the driver itself.
• Collision Insurance Coverage: Collision insurance coverage is designed to financially cover your car when it accidentally collides with another vehicle regardless of whoever is at-fault for the accident. Even if another vehicle hits your car and, damages, it while it’s parked collision insurance will cover that too. So, collision insurance is designed to cover the car as it only pays for the vehicle’s repair and replacement costs. 
• Comprehensive Insurance Coverage: Comprehensive insurance is designed to financially protect your car from unprecedented incidents such as theft, vandalism, severe weather conditions, fire hazard, and more. This insurance policy typically covers vehicle damages that are beyond your control. So, for this coverage the driver is not relevant, as the car could be parked somewhere while the accident occurs. Even comprehensive insurance coverage follows the car not the driver.

Typically, it’s the combination of these three insurance coverages that make the full auto insurance coverage. Apart from these there are many other auto insurance coverages too like uninsured/underinsured motorist coverage, medical payments coverage (MedPay), personal injury protection (PIP) insurance, gap insurance, and more.

Similarly, like the three insurance coverages discussed above, even these auto insurance coverages also cover the car, not particularly the driver itself.

When Does Auto Insurance Cover the Driver?

There are exceptions where auto insurance does cover the driver as well, this is especially when you rent the car. As you don’t own the car here, the auto renter’s insurance cannot be registered to the car so that’s why it’s officially processed in your name; particularly the driver.

So, typically the only time your auto insurance follows the driver is when you rent the car. If you own one, then it will apply to the car like the other auto insurance coverages.

Will Auto Insurance Cover Another Person Who Borrows and Drives My Car?

Well, that depends whether this person is enlisted in your auto insurance policy, if so then definitely yes. If they’re not, then the condition is they need to have your verbal consent to drive your car, this typically falls under the clause of permissive use for auto insurance.

Permissive Driver

A permissive driver is someone who has your verbal consent to drive your car. So, if this person gets into an accident while driving your car, it is your auto insurance policy that will generally cover the liability compensation, medical bills, and vehicle repair costs.

But if this person is borrowing or using your vehicle as theirs is currently being repaired, in that case your auto insurance policy may not cover the damage. It either must come from their auto insurance policy, or out of their pocket. Also, if you drive your parents’ car the permissive use condition may not apply, and similarly it will be your responsibility to cover the damage either from your own policy, or by paying out of pocket.

Non-Permissive and Excluded Driver

If someone drives your car without your consent or permission, then it is considered non-permissive driving. Your auto insurance policy wouldn’t cover any driver who didn’t have your consent to drive the car. Also, if you have enlisted the person as an excluded driver, then your auto insurance policy won’t cover any expense for that driver even if they’ve damaged your car in an accident.

However, there are some states and insurance agencies in the US that do allow some coverage for excluded drivers but that widely varies from one insurer to another. Generally non-permissive and excluded drivers wouldn’t get any coverage from your auto insurance policy.

What Happens if an Uninsured Driver Borrows My Car?

As car insurance generally follows the car and not the driver, if the uninsured driver has your consent to drive your car and if they get into an accident, then it should be covered by your auto insurance policy.

However, if there are conditions in your auto insurance agreement clearly specifying that any uninsured driver will not be covered by your auto insurance policy, in that case the uninsured driver will most likely have to compensate for the damages out of their own pocket.

So, that’s why it’s always best to be careful. Read the terms and conditions of your auto insurance policy, and yet if you’re not sure, you can always call your insurance company and confirm whether they provide coverage for uninsured drivers based on the permissive use criteria.

Are Household Members Covered or Do They Need to Be Enlisted?

The good news is typically by default household members will be covered by your auto insurance policy as long as they have permission to drive. But if you want to ensure that they’re protected by your auto insurance policy, it’s always best to enlist them.

If you’re married, you can consider getting supplemental spouse auto insurance, this will help you save on annual premiums, plus you will also get access to bundle of plans designed for married couples.

Again, as car insurance typically covers the car itself, household members should be covered. But to stay on the safe side you should review the conditions specified for your auto insurance policy. Incase if it does not cover household members, then you should consider getting them enlisted in your auto insurance policy.

Final Remark: Does Auto Insurance Follow the Car or the Driver?

If you’ve read this far, it should be clear to you that auto insurance covers the car in almost every aspect. The only exception is when you rent a vehicle or acquire one through a car-sharing company it's the driver that gets covered.

Although given the fact that there are multiple factors involved here, and as the conditions typically vary based on location and insurer’s policy, it’s always best to confirm with your insurance agency.

If you’re still confused, and would like to ensure, you can contact us and consult with one of our insurance experts. We will be happy to guide you, and if you’re interested, we can even recommend the best auto insurance coverage at the most affordable range within your budget.

FAQ

Does auto insurance follow the car or driver?

Typically, auto insurance follows the car as most auto insurance coverages are designed to cover the car not the driver. However, there are exceptions particularly based on the actual terms and conditions of your auto insurance policy. But in general, the main exception applies when you rent a vehicle or use one from a car-sharing agency.

Can someone drive my car if they are not on my insurance?

Yes, any licensed driver can drive your car even if they not enlisted under your auto insurance policy but for that they will need your verbal consent which goes under the permissive use criteria.

What happens if my friend is driving my car and gets in an accident?

If your friend had your consent to drive your car, and then if they get into an accident, your auto insurance policy should cover any liability compensation, medical costs, vehicle repair expenses, and property damage maintenance costs.

Can my wife drive and get coverage for my car if she's not on my insurance?

If you and your wife live in the same household, then your wife should be eligible for insurance under the permissive usage criteria. However, if she lives in a different state or country and drives occasionally during her visits then it could vary based on the agreed terms and conditions of your auto insurance policy.