Common Questions About Car Insurance

November 06, 2020 by Dan Green

Does car insurance cover the car or the driver?

Auto insurance covers both the car and the driver of the car, but there are stipulations.

The liability portion of your auto insurance policy follows you, as the driver, no matter which car you’re driving. It could be your car, or a rental car, or a friend’s car, or a moving truck — it doesn’t matter.

The comprehensive and collision part of your insurance does not follow you to other vehicles. That portion of your policy is linked to your specific car, and to the list of people who are named as potential drivers.

This makes sense when you think about the value of your car and the value of somebody else’s — they’re not identical so your insurance policy can’t cover both cars. And, it won’t cover random drivers of your car, either, whose driving records aren’t built-in to your policy and its premium.

Can someone else drive my car under my insurance?

Generally, another person can’t drive your vehicle and get the benefits of your insurance.

This is because your car’s insurance premium is based on your driving record, and the record of all of your named drivers.

It’s a bad idea to let a friend drive your car because, in the event of an accident, your friend might not be covered for damage in a collision. This might include the value of your car, plus whatever damage is done to other cars and public property.

Can I drive any car under my insurance?

In general, your auto insurance policy doesn’t cover damage from accidents you cause while driving another person’s car. It covers injuries, hospital bills, and coverage against drivers with no coverage whatsoever; but, not the cost of repairs of the cars involved.

One exception: rented and loaner vehicles. You can drive a rented or loaner vehicle and expect your insurance to carry-over in many cases.

To be sure, though, make a call to your insurer before getting behind the wheel.

Is car insurance required in every state?

Every state requires that drivers pay auto insurance except for New Hampshire. New Hampshire does not require auto insurance. It does, however, require all drivers to pay for the costs of bodily injury and whatever property damage costs occur in an accident situation.

What is the minimum car insurance a driver needs?

The minimum amount of car insurance varies by state. Some states require a lot of coverage, an some require none. Costs vary between insurers so get two or more quotes.

Does car insurance cover the car or the driver?

So long as a driver has permission to operate another person’s car, that other person’s auto insurance policy will protect against collision damages to the car, other cars, and property; and the driver’s auto insurance policy will protect against liability claims and lawsuits.

There are exceptions, though, so call to your insurer before getting behind the wheel.

What is “proof of car insurance”?

Car insurance companies send identification cards to policyholders twice annually. The identification card lists the driver’s name, the vehicle make and model, a valid policy number, and some basics of the coverage. Many drivers leave this paper card in their automobile for when it might be needed.

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