Does car insurance follow the car or the driver?


It depends on the kind of insurance policy you have. There are policies that follow the car and policies that follow the driver.

Insurance Following the Car

This kind of coverage has the vehicle listed in the policy. If anyone who has your permission drives the car, that person is covered by virtue of the fact that the car is covered. Don't be misled. This kind of insurance does not cover just anyone. There are qualifications for the drivers covered.

It really depends on the insurance company that issued your policy. So, before you let anyone else borrow your car, be sure to know what these qualifications are.

Those who are part of your household and are living at your home address and are related to you by blood or marriage should be included in your "drivers covered" list. Other drivers that live in your home that you don't want or allow to drive the car should be listed in the "excluded drivers" list.

When you list someone in your excluded drivers section, they should absolutely not drive the car. If something happens when they drive the car (especially if these excluded drivers are at fault), the insurance will deny any claim - be it liability, collision or personal injury.

Then, the policy will provide coverage (somewhat limited, though) to drivers who have permission to drive their car, as long as they:

  • Don't live in your house
  • Don't have regular access to your covered cars
  • Don't have any trace of ownership of the cars
  • Isn't using the car for business or work-related purposes

Insurance that Follows the Driver

Please note that for this kind of policy, the insurance that "follows" the driver will be only limited to liability cover. When you drive another car, such as a rental car or your friend's car, you are covered for liability insurance.

Other types of coverage such as collision or comprehensive insurance will stay with the car. These coverages will not be transferrable to any car that you, as the "covered" driver operates.

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