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Does car insurance cover the car or the driver
Knowing who is covered by your car insurance policy is essential. Can other people drive your vehicle? Is it still covered by your automobile insurance policy if they do? This is a general question about auto insurance that people should be aware of. Knowing when your vehicle will not be covered can help you avoid potentially risky situations where larger repairs are needed but do not end up being covered. There are many unique situations people can find themselves in, and sometimes the car insurance will cover the car, and other times it will cover the driver.
Does My Car Insurance Cover Other Drivers?
In most cases, a person’s car insurance plan will follow the car. There are, however, some types of car insurance policies that follow drivers. If your friend borrows your vehicle and gets into an accident, your auto insurance can extend to your friend. There are a lot of exceptions to this, which should be noted. The laws surrounding auto insurance can vary from one state to the next as well, so research may be necessary.
First, the owner needs to give permission to the noninsured person to have coverage on the vehicle extended to them. Verbal permission is generally good enough for this; no formal letter is necessary. In addition, if your vehicle is stolen, the driver will not have your permission to be driving it, but the comprehensive insurance will stick with the car itself.
Certain drivers will need to be listed on your policy in order to be covered. This is one reason that auto insurance providers ask for the names of everyone who is living where you are. The idea is that these drivers are likely to be behind the wheel of your vehicle at some point, so it makes sense to list them on your plan. Some automobile policies do only cover drivers who are listed on the policy itself, so reading the fine print and asking the company itself can be beneficial.
Does Car Insurance Follow The Car Or The Driver?
Whether your car insurance plan follows the car or the driver can also depend on the type of policy it is. Certain coverages will follow the car and cover drivers that are not on the policy. This includes comprehensive coverage, collision coverage, and liability insurance. Coverage that will follow a driver when they are driving another vehicle includes Personal Injury Protection, or PIP. MedPay and Liability will also fit into this category. It is also essential to know these things to determine which types of insurance plans and coverage you would like to purchase. When you decide which types of coverage you are interested in, shopping around for the best prices for auto insurance is essential. You can compare prices for car insurance using the tools on this website to find the best rates available in your area.
Types Of Auto Insurance Policies And Coverage Options
Many different types of insurance coverage are available, and realizing that is the first step to awareness of how coverage works. People pay one bill each month, and this pays for all of the different types of policies they have opted to get. Basic insurance coverage is required in every state, though each state has different laws determining how much coverage is required and which types of policies are needed. Additional insurance coverage beyond this is considered optional, though it can be a major help and save people a lot of money in the long run.
Liability insurance coverage will pay for the other person’s medical bills, repairs to the other person’s vehicle, or repairs to the other person’s property. There are multiple types of liability insurance, and most states require a minimum amount for drivers to be on the road legally. In most cases, it is not recommended that you purchase the minimum required amount of insurance. The minimum limits are often not enough to cover the costs after an accident, leaving the at-fault driver responsible for paying for some of the damages out-of-pocket. Liability insurance policies both follow the car and the driver, though in different ways. Even if the car insurance you have is following your car, you may be responsible for paying your deductible if an accident occurs. Making sure that you have a deductible you can afford is important.
Other types of auto insurance include comprehensive insurance and collision insurance. Full coverage is a combination of both of these things, though not everything is covered even if you have basic insurance, comprehensive insurance, and collision coverage. Collision insurance coverage provides financial protection for damage to a person’s vehicle while they are driving. Comprehensive insurance coverage covers multiple perils, including weather-related perils, theft, and vandalism. People can purchase these coverages separately, though in many cases, both will come together.
If there are two insurance policies that are similar and can cover the same situation, one of the policies becomes the primary coverage. This policy will pay for everything up to its maximum limit, then the secondary coverage could cover expenses beyond that. Keep in mind that if multiple insurance policies are being utilized, multiple deductibles may need to be paid for. There are other considerations as well, such as rental cars. In general, your car insurance will follow you and cover the rental vehicle you have gotten. This includes liability insurance, collision insurance, and comprehensive insurance, and most cases. It is a smart plan to verify this with your car insurance provider, as each insurance company has different policies overall. Getting more coverage can be helpful, whether you are driving your own vehicle or someone else’s in some cases. Get the top prices for car insurance available in your area quickly and easily here.