Does Car Insurance Cover the Car or the Driver?

Wondering whether your car insurance protects the vehicle or the driver? Here's what you need to know to ensure both you and anyone driving your car are properly covered.
Does Car Insurance Follow the Car or the Driver?
Generally, car insurance follows the vehicle. However, whether coverage follows the car or the driver can depend on:
- The state you live in.
- Your insurance provider.
- Whether the driver has permission to use your car.
Coverage may also depend on whether the driver is listed as an insured person on your policy.
For instance, if your spouse, partner, children, siblings, parents, or other family members are listed on your policy as authorized drivers, they will typically be covered when using your vehicle.
If you're unsure about your specific situation, it’s always a good idea to contact your insurance company for clarification.
What Happens if Someone Borrows My Car and Has an Accident?
Typically, if you lend your car to someone and they get into an accident, your auto insurance will extend to cover the incident. This means your insurance company will likely handle the claim.
Even if the person borrowing your car has their own insurance, your policy will usually be the primary one. This makes you responsible for:
- Filing the claim.
- Paying the deductible, rental car fees, towing costs, etc.
- Potentially facing a rate increase due to the accident.
If the driver wasn’t at fault in the accident, then the responsibility would fall on the at-fault party and their insurance company, unless you live in a state with no-fault insurance.
Different insurance companies may have varying policies, so it's always smart to check with your provider before lending your car to someone to understand what could happen in case of an accident.
Should I List People Who Occasionally Use My Car on My Policy?
Yes. Whether the use is occasional or frequent, if you share your vehicle with other licensed drivers, it’s a good idea to add them to your auto insurance policy.
By doing so, you ensure that both you and the driver are covered in the event of a claimable incident.
Does My Auto Insurance Cover Drivers Who Rent My Car Through a Car-Sharing Program?
If you’re part of a car-sharing program where people pay to use your vehicle for short trips, your auto insurance likely won’t cover those drivers.
In most cases, you'll need to purchase additional insurance coverage if you engage in this type of service.
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