Is the coverage for the car, the driver, or both?
Insurance and all that goes along with it can get somewhat confusing. Plus, reading the entire policy document along with terms and conditions and then understanding it all isn’t for everyone. So we’ve put together some common confusions and tried to detangle the web that is auto insurance.
Does Auto Insurance Cover the Driver or The Vehicle?
A lot of variables are involved regarding the above question. Normally, auto insurance covers the vehicle. However, there are some coverage types that cover the driver as well. The variables that decide whether the coverage is for the driver or the car depends on the state’s insurance laws, policy type, and the coverage specified in the policy.
Does Liability Coverage Follow the Car or The Driver?
The liability coverage always protects the insured person, i.e., the driver. The coverage also follows the driver irrespective of whose car they are driving. This insurance pays for medical bills and the other party’s vehicle repair after an accident.
Comprehensive and Collision Insurance: Car or Driver?
Comprehensive insurance covers the car. If the driver of the car lends the vehicle to someone else, the insurance also goes along with the car. Collision insurance is for the car you’re driving. Comprehensive coverage is for damage caused by other events.
Are Comprehensive and Collision Insurance Mandatory? What Do They Exclude?
Both are optional except when the car is a lease or if it has been financed. They’re usually sold as a package, but can also be bought separately. If another driver is involved in an accident, and they are not listed as a covered driver, the insurance coverage may not include them. Generally, family members are included in the policy, but the insurance will not cover someone who does not have the car owner’s permission.
Can the Driver Exclude People from Policy Coverage?
Yes. The driver is allowed to exclude people from their policy coverage. Sometimes, the insurance company asks the driver to exclude certain individuals from driving their car. This may happen if those individuals are involved in accidents, DUIs, are teenagers, or those who don’t have a good driving record. If you exclude them from coverage, you will save money on the premium.
How Can a Non-Car Owner Protect Himself?
If you borrow a car often, you can get non-owner car insurance. It provides liability coverage and covers costs if damages exceed the owner’s insurance cover.
