Does Auto insurance Follow the Driver or Car?
The question of who insurance follows—the driver or the car—is a very common question that we get asked all the time. It is no wonder that there is a lot of confusion out there, something we will attempt to clear up in this post.
In general, car insurance follows the vehicle; not the driver. If your friend borrows your car (with permission) and gets into an accident, the claim will be filed primarily with your insurance company. Of course, your insurance records must show that they were not listed as an “excluded driver” on your policy, and that you did not have a named-driver-only policy (which are usually only offered by discount insurance companies).
If there’s more coverage needed beyond your policy limits, the driver’s policy will kick in as a secondary source. If you never actually gave the person permission to drive your car, the claim should be filed solely with their insurance company.
Other factors that may come into play in these kinds of insurance quandaries include whether the car was a dealership loaner or rental, and why the other person was driving the vehicle. In most cases, PIP (personal injury protection) and Med Pay tend to follow an insured individual into a borrowed vehicle.
All this being said, there are many caveats and exceptions to the rule, and trying to figure it out on your own can lead to confusion and serious mistakes. If you have questions, feel free to seek out a free consultation with a car accident lawyer or speak to your insurance provider for a better understanding.
Category: In Depth
