Auto insurance is a crucial aspect of owning a car. It provides financial protection in case of an accident, theft, or damage to the vehicle. However, there is often confusion over whether auto insurance covers the car itself or the driver operating the car. A car insurance policy is a contractual agreement that provides coverage for both the car and the driver, but the details can vary depending on the exact terms of your policy. In this blog post, we will discuss this common question and provide some insights into what is covered by auto insurance.
Types of Coverage
Car insurance policies are made up of several different types of coverage, each designed to protect you, your vehicle, and others on the road in specific situations. Understanding these coverage options is key to knowing whether your insurance follows the car or the driver, and what happens if an accident occurs.
Liability Coverage:Liability coverage is the foundation of most car insurance policies. It pays for injuries and property damage you cause to others in an accident where you are at fault. In most cases, liability coverage follows the car, meaning if someone else drives your vehicle with your permission and causes an accident, your liability insurance will typically cover the damages—up to your policy limits.
Collision Coverage:Collision coverage helps pay for repairs to your own car if it’s damaged in a crash, regardless of who is at fault. This type of coverage is tied to the insured vehicle itself, not the person driving. So, if your car is involved in a covered accident, collision coverage will help cover damages, whether you or someone else was behind the wheel (as long as they had permission).
Comprehensive Coverage:Comprehensive coverage protects your car from non-collision events like theft, vandalism, fire, or natural disasters. Like collision coverage, comprehensive coverage is attached to the car, not the driver. If your vehicle is damaged by a covered event, your insurance company will help pay for repairs or replacement, no matter who was driving at the time.
Personal Injury Protection (PIP):Personal injury protection, or PIP, covers medical expenses for you and your passengers after an accident, regardless of who was at fault. PIP coverage can follow the driver, providing benefits even if you’re injured while driving someone else’s car, depending on your policy and state regulations.
By understanding these types of car insurance coverage, you can better determine how your insurance policy protects you, your vehicle, and others—whether you’re driving your own car or someone else’s. Always review your policy details and speak with your insurance provider to ensure you have the right coverage for your needs.
Instances When Car Insurance Follows the Vehicle
When you rent a car, the rental company’s insurance typically covers the vehicle itself, not you as the driver. Their policy protects them if anything happens to the car while you’re renting it. In most cases, the rental company’s insurance acts as secondary coverage, kicking in only if your own policy is insufficient. In these scenarios, car insurance follow the car, meaning insurance follow the vehicle first and the driver second.
The same goes if you borrow someone else’s vehicle or drive someone else’s car. For example, if a friend borrows your car or you borrow a friend’s car to move some furniture, and there’s an accident, the vehicle owner’s auto insurance will typically provide the primary coverage for repairs or replacement of the friend’s car or else’s vehicle. If the driver who borrowed your car is found legally liable for the accident, your liability coverage will generally pay for the damage or injury caused to someone else. If the primary insurance coverage isn’t enough to cover all damages or injuries, secondary insurance or secondary coverage may kick in to help with the rest of the costs. If a friend borrows your car and gets into an accident, your insurance will typically cover the damages as if you were driving, provided they had your permission and did not live in the household. However, if you give an excluded person permission to drive your vehicle and they cause an accident, you’ll both be financially responsible for any resulting damages—these are potential consequences to consider. Letting someone else drive your car occasionally will not typically affect your premiums, but if they regularly use the vehicle, they should be listed on your policy as a rated driver. Most car insurance policies will cover all household members, even if they are not named on the policy, but insurance companies may require you to list all licensed drivers in your same household to ensure coverage in case of an accident.
- To protect yourself in these situations, consider purchasing non-owner car insurance. This provides liability coverage that travels with you, not the vehicle. It can give you peace of mind when driving a rented, borrowed or temporary vehicle.
- If you frequently rent cars for business or leisure, non-owner insurance may save you money versus paying for rental car company insurance each time. Just check that the policy covers rental vehicles before purchasing.
- When borrowing a vehicle from someone you know, non-owner insurance supplements the owner’s existing policies Liability. Their insurance still covers the car itself, while your non-owner policy provides coverage for you as the driver.
It’s important to understand the concept of primary coverage and secondary coverage, especially when multiple insurance policies may apply. Primary insurance is the policy that pays out first when you make a claim, while secondary insurance kicks in to help with the rest of the costs if the primary is insufficient. In most cases, the vehicle owner’s policy provides the primary coverage in the event of a claim, and if the primary policy’s coverage limits are met and there are still outstanding expenses, a claim may be made to the secondary insurance policy.
The bottom line is that standard auto policies protect the vehicle, not necessarily the person behind the wheel. Why risk it—your financial and legal security is worth the investment!
Same goes if you have to drive a rental car for work. Whether it’s a short business trip or you’re temporarily relocated, your auto insurance will transfer to the rental for liability and physical damage coverage. The rental company’s policy will only kick in if your own coverage is insufficient.
If you sell your car, your auto insurance coverage will end when the new owner takes possession. However, if you’re between vehicles for a short time, most insurers will extend coverage to rental cars or vehicles you borrow, for up to 30 days. This prevents a lapse in coverage in case you’re involved in an accident.
In all these situations, the vehicle owner’s policy may also provide some coverage, but your own auto insurance is primary. However, you must ensure to have adequate coverage limits on your own policy in case you ever need to rely on it while driving another vehicle. Your insurance follows you, so choose wisely!
Does Full Coverage Insurance Cover Other Drivers?
When you purchase full coverage auto insurance, it primarily covers the policyholder and any drivers specifically listed on the policy, rather than just the actual vehicle itself. Coverage may depend on whether the person driving is listed on your policy and whether they are a licensed or unlicensed driver, as failing to disclose unlicensed drivers or those with learner’s permits can result in denied claims. Insurance coverage applies to damages or accidents involving a person’s vehicle, whether it is their own or a borrowed vehicle, but only if the policy terms are met.
- Your auto insurance covers other drivers specifically named on the policy. If someone else is driving your car and gets in an accident, their insurance (if they have a policy) would be responsible for the damages, not yours.
- The only exception is if the other driver has your explicit permission to drive the vehicle. In that case, your full coverage may extend to them, depending on your insurance provider and policy details.
Allowing an Unlisted, Uninsured Driver to Use Your Vehicle is Risky
Loaning your car to someone not listed on your insurance policy is risky because if they get in an accident, the costs could fall on you. There are potential consequences to allowing an unlisted or uninsured driver to use your vehicle, including the risk of being financially responsible for damages. If an accident is caused by an unlisted or uninsured driver, your insurance may not cover the damages. Additionally, your insurance may not cover damages if the driver was under the influence of alcohol or drugs at the time of the car accident. Their insurance likely won’t cover damages to your vehicle, and your insurance won’t cover an unlisted driver. You could be left paying for repairs or even replacement of your car out of pocket.
- The safest option is to only allow listed, insured drivers to operate your vehicle. If you do loan your car to someone else, check that they have their own valid auto insurance first. You may also want to consider temporarily adding them as a driver to your own policy.
- While it may seem inconvenient, protecting yourself financially is worth the extra effort. Paying for uninsured damages or medical bills after an accident could end up costing you thousands of dollars.
When in doubt, contact your insurance provider to make sure you understand exactly who and what is covered under your full coverage auto insurance policy. It’s better to double check before an accident happens rather than risk being left with bills to pay.
Permissive vs Non-permissive Use: What is the Difference?
With a permissive use auto insurance policy, any licensed driver you give permission to drive your car is covered under your insurance. Most car insurance policies automatically include household members, but you may be required to list all licensed drivers living in your residence to ensure full coverage. This means friends, family members, or anyone else you lend your keys to is covered in the event of an accident, as long as the exact terms of your car insurance policy are met. The coverage and limits on your own policy will apply to the other driver.
A non-permissive use auto policy only provides coverage for the specific named insured driver(s) listed on the policy. If you lend your vehicle to another driver and they get into an accident, your insurance will not provide any coverage for them or the vehicle. You would be solely responsible for the damages. This is the more restrictive option but can save money on premiums since the insurance company is taking on less risk.
- Permissive use is more flexible but typically costs more
- Non-permissive use only covers named drivers so is cheaper but less flexible
- Consider how often you lend your vehicle to others when choosing
- Certain states mandate permissive use, check with your local regulations
Will My Car Insurance Cover Me in Another Car?
In most cases, your auto insurance policy will not cover you when driving another vehicle. Coverage usually follows the vehicle, not the driver. Whether you are driving your own personal vehicle or someone else’s, coverage may vary depending on the specifics of your car insurance policy. So if you borrow your friend’s car and get in an accident, your own auto policy will not provide coverage. However, there are a few exceptions and additional details to keep in mind:
- Liability coverage will not transfer to the vehicle you’re driving. The insurance follows the vehicle, not the driver.
- The coverage limits on the vehicle you’re driving will apply. If the other vehicle has lower coverage limits than your own policy, you’ll only receive up to the lower amount.
- Regular drivers of the vehicle you borrow still need to be listed on the insurance policy. If you frequently drive another vehicle, you’ll want to be added as a named driver to ensure proper coverage. Anyone living in your household needs to be listed on your policy or excluded.
- Exotic or high-value vehicles may not be covered under a standard auto policy. Check with your insurance provider beforehand if borrowing a pricey sports car or luxury vehicle.
- Coverage will not apply if you rent a vehicle for commercial purposes or operate a vehicle without the owner’s consent.
If I Get Hit by Someone Without Insurance, Am I Covered?
Unfortunately, if an uninsured driver hits you, your own auto insurance policy typically won’t cover the vehicle damage or car damages unless you have comprehensive and collision coverage. Vehicle damage and car damages resulting from a car accident may be covered under comprehensive and collision coverage, depending on the circumstances. Collision coverage pays for damage to your vehicle if your car hits another vehicle or object, or if the vehicle rolls. Comprehensive coverage pays for damages to your vehicle from vandalism, theft, and natural disasters. However, there are a few options you can explore to recover your costs. When filing a claim, it’s important to note that a covered claim is one that meets the requirements of your policy and is eligible for payment.
File a claim with your own insurance
Even though your insurance won’t pay for repairs if you have liability only, filing a claim will document the accident. This establishes an official record of the incident which may help with the other steps below. Your insurance company may also be able to provide advice for next steps to take. You should consider purchasing uninsured motorist property damage if purchasing liability only. UMPD covers your car’s damage if a known uninsured motorist hits your car. If it’s a hit in run the UMPD coverage will not cover your car because it has to be a known uninsured motorist.
Sue the other driver
You have the right to pursue legal action against the other driver to recover damages. You can file a lawsuit against them to force them to pay for repairs and medical bills if anyone was injured. However, this option can be time-consuming and expensive. If the other driver has no insurance, they may have limited ability to pay a legal settlement.
See if your own policy has uninsured motorist coverage property damage
If you purchased uninsured motorist property damage coverage with your own auto insurance, it may help in this situation. This coverage reimburses you for damage caused by an known uninsured driver. However, it typically only pays out if the other driver is identified and proven to be at fault. Check your specific policy details to confirm if you have this coverage and what the requirements are to use it.
Key Takeaways: Auto Insurance in Illinois – Protecting Your Vehicle and Yourself as a Driver
When it comes to driving in Illinois, protecting yourself and your vehicle is of the utmost importance. Liability coverage protects you from the financial strain of injury or property damage caused to others. And, by not overlooking uninsured/underinsured motorist coverage, you can protect yourself in the event of an accident with an inadequately insured driver. Drive with confidence and peace of mind by choosing the right auto insurance tailored to your needs. Don’t wait until it’s too late, take action today to secure the protection you deserve for yourself and your vehicle.
