Resources

Imagine you let a friend borrow your car, and they get into an accident. Who is responsible for the damages—the driver or you, the car owner? Understanding whether car insurance follows the car or the driver is essential to avoid unexpected financial and legal issues.

In this article, we’ll explore how auto insurance policies work, when insurance follows the car versus the driver, and what you should know before letting someone borrow your car.

Does Car Insurance Follow the Car or the Driver?

Many people assume that car insurance follows the driver, but in reality, car insurance generally follows the car. This means that if someone is driving your vehicle and is involved in an accident, your insurance coverage will typically apply first.

• Primary Insurance: In most cases, liability insurance follows the car, meaning that if someone borrows your car and hits another car, your policy will cover the damages.
• Secondary Insurance: If the damages exceed your car insurance policy limits, the driver’s insurance may act as secondary coverage.
• Comprehensive and Collision Insurance: If your car sustains damage in an accident, your collision insurance will usually cover it, regardless of who was driving.

While car insurance generally follows the car, there are situations where insurance follows the driver, such as when driving a rental car or a vehicle for commercial purposes.

What Happens If Someone Else Drives Your Car and Gets in an Accident?

If you lend your car to someone and they are involved in an accident, determining who pays for damages depends on several factors:

1. Permission to Drive the Car

• If you let someone borrow your car and they have an accident, your insurance may cover the damages.
• If the driver takes your car without permission, your policy may not cover the accident.

2. Excluded Drivers on Your Policy

• Some auto insurance policies have excluded drivers, meaning that if an excluded driver crashes your car, your insurance will not cover the damage.
• It’s important to check with your insurance agent before letting an excluded driver use your car.

3. If the Driver Has Their Own Insurance

• If the person driving your car has auto insurance, their policy might act as secondary insurance, covering excess costs beyond your insurance coverage.
• However, if the driver is uninsured, you may be held fully responsible for all damages.

Special Cases: Rental Cars, Borrowing a Car, and Commercial Use

There are certain situations where insurance follows the driver, such as when using a rental car or driving a car for business purposes.

1. Rental Cars

• When you rent a car, the rental car company often provides optional insurance coverage.
• If you decline the rental company’s insurance, your personal auto insurance may cover damages, depending on your policy terms.

2. Borrowing Someone Else’s Car

• If you borrow a car and are involved in an accident, the owner’s insurance generally covers the damages first.
• If the policy limits are exceeded, your insurance may help cover additional costs.

3. Using a Car for Business Purposes

• Personal car insurance policies may not cover accidents that happen while using a vehicle for commercial purposes.
• Businesses often require a commercial auto insurance policy for proper coverage.

Conclusion

So, does car insurance follow the car or the driver? In most cases, insurance follows the car, meaning that if someone borrows your vehicle and gets into an accident, your auto insurance policy will typically be the primary coverage. However, exceptions apply, such as rental cars, commercial use, and excluded drivers.

Before you let someone borrow your car, always check with your insurance agent to understand what your policy covers. If you ever find yourself involved in an accident and need legal guidance, consulting a lawyer can help protect your rights and navigate the insurance claim process.

For more insights into car insurance policies, personal injury cases, and auto accident claims, check out our other articles.

FAQs

1. Will my insurance cover someone else driving my car?

Yes, in most cases, car insurance follows the car, meaning your insurance will cover the damages if you give permission for someone to drive your car.

2. Does car insurance follow the driver for rental cars?

It depends. Your personal auto insurance may cover rental cars, but you should check your policy terms or consider rental car insurance for additional protection.

3. What happens if an excluded driver crashes my car?

If a driver who is excluded from your policy is involved in an accident, your insurance may not cover the damages, leaving you personally responsible.

4. Does car insurance cover commercial vehicle use?

No, most personal car insurance policies do not cover accidents that happen while using a car for business purposes. You may need commercial auto insurance for proper coverage.

5. What should I do before lending my car to someone?

Before letting someone borrow your car, make sure:

• They have a valid driver’s license.
• They are not excluded from your insurance policy.
• You check with your insurance agent to confirm coverage details.

 

The information provided on this blog is for general informational purposes only. All information on the site is provided in good faith; however, we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability, or completeness of any information on the site. Under no circumstance shall we have any liability to you for any loss or damage of any kind incurred as a result of the use of the site or reliance on any information provided on the site. Your use of the site and your reliance on any information on the site are solely at your own risk. This blog is not intended to be a substitute for professional legal advice. Always seek the advice of an attorney or other qualified legal provider with any questions you may have regarding a legal matter.