What Does Comprehensive And Collision Coverage Exclude And Is It Mandatory
Both comprehensive and collision coverage are optional except in cases where the vehicle is leased or there is an auto loan. While they are often together in a package, comprehensive and collision can be bought separately. As for stipulations for comprehensive and collision, another driver might not be covered in an accident if they are not listed as a covered driver. Family members are typically included in the policy, but insurance does not cover someone who does not have the owner’s permission to drive the vehicle.
Does My Insurance Cover Rental Cars
Another example occurs with rental cars: Do I buy their pricey liability and physical damage waiver? This one isnt so easy to answer because it depends on the language in your particular auto policy, but many insurance companies will extend coverage from your own policy to the rented vehicle.
There are a few things commonly not covered in this scenario , so speak with your agent to find out how your policy responds to rented vehicles. Saving the money on the rental companys fee is worth the call.
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What Happens If Someone Gets In An Accident While Driving Your Car
Take this example into consideration: What if a friend borrows your car to run to the store? Down the street, he accidentally runs a stoplight and hits another car. Or what if YOURE the friend who borrowed a car to run an errand and you were involved in an accident. Does your own coverage transfer since you were driving?
The answer to these questions can be different from state to state, so Ill speak only for Utah for these scenarios.
In the state of Utah, the physical damage coverage for the car that youre driving will follow only that vehicle. So as good as your friends intentions may be, his coverage will not pay to fix your car if you lend it out to him and there was a wreck. In this scenario, you would first need to make sure that you have Comprehensive and Collision on this particular car.
Additionally, the liability coverage usually only extends from the vehicle being driven. For this reason, you could actually be ticketed for driving your friends car if he did not have insurance on it, even if you carry the greatest policy on earth for yourself.
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Who Can Drive My Car Under My Insurance
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Can someone else drive my car under my insurance? The short answer: Yes. Your auto insurance covers your car, not the person driving it. If someone borrows your car and crashes it, your insurance will cover the losses â however, your premiums may increase.
Driving Someone Elses Car In Ontario
In Ontario, you need to make sure you have specific Ontario Policy Change Forms on your policy. Usually, it comes standard on a comprehensive policy, but itâs worth double checking if you want to drive someone elseâs car.
OPCF 27 is the big one that covers âLiability for Damage to Non-Owned Automobile and Other Coverages When Insured Persons Drive, Rent or Lease Other Automobilesâ.â In laymanâs terms, this covers you when you against damages to someone elseâs car and more specifically helps you avoid paying rental car insurance when at the car rental counter.
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Choosing An Agent Or Broker
Choose your agent or broker carefully. Can you trust the agent or broker? Do you feel that they will put your interests first?
You can look for agents or brokers in your local yellow pages or online. Or ask for names from family members, friends, neighbors, or co-workers. Ask:
- Did the person take the time to fully explain your policy?
- Did they answer all your questions?
- How did they respond when you had a claim?
- How often do they contact you to review and update your policy?
If You Cannot Afford Standard Auto Insurance
The law says that you must have auto liability insurance. However, if you have a low income, it can be hard to pay the premium. California has a program to help you.
This program helps income-eligible good drivers get insurance. The premium for liability coverage vary by the county you live in. Please check our website for current rates.
The liability limits for this program are lower than the limits usually required by the state. But these limits do satisfy state financial responsibility laws. The limits are:
$10,000 bodily injury or death per person
$20,000 bodily injury or death per accident
$3,000 property damage per accident
Your annual income must be 250% or less of the federal poverty level.
Your car must be worth $25,000 or less.
You must have a valid California drivers license.
You must be at least 16 years old.
If there is a single male driver in the household who is 19 to 24 years old, the premium is higher.
There are 7 payment plans available. There is no broker’s fee.
For more information, go to www.mylowcostauto.com. Or call 1-866-602-8861.
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If You Have A Car Loan:
If you have a loan, you usually need to insure your car. If you do not buy insurance, the loan company may buy it and charge you. It usually costs less if you get your own Collision and Comprehensive coverage.
Auto insurance does not pay off your loan if your car is damaged and its market value is less than what you owe. Auto dealers and lenders may offer Guaranteed Auto Protection insurance for this purpose.
Liability Coverage is for accidents that are your fault.
- Bodily injury liability pays for bodily injury you cause someone else.
- Property damage liability pays for property damage you cause someone else.
California law requires you to have this coverage. See pages 67.
Uninsured/Underinsured Motorist Coverage is for accidents when the other driver is at fault and does not have insurance or does not have enough insurance.
- Bodily injury coverage pays medical expenses for you and passengers.
- Property damage coverage pays the cost of repairs to your car not covered by collision coverage up to $3,500. You may not need this if you have collision coverage.
You must be offered this coverage, but you can choose not to buy it.
Medical Payments Coverage pays limited medical expenses for people injured in the car you are driving when you have an accident, whether or not you are at fault.
You may be offered this coverage
Physical Damage Coverage pays the cost of repairs or replacement of your car, minus your deductible.
This coverage is required by lenders or leasing companies.
Does Automobile Insurance Follow The Car Or The Driver
A common question newcomers to auto insurance have concerns how a car policy functions. Does insurance cover the car or the driver? Its a reasonable question, since motorists frequently drive other vehicles or lend their cars to other drivers. Usually, a policy issues to a specific vehicle, identified by its unique Vehicle Identification number, or VIN. There are cases where insurance coverage extends to the driver when they use other vehicles.
What Should I Check Before Letting Someone Else Drive My Car
Make sure the driver has an active, valid license and has not been drinking or using drugs. Also ask what they want to use the car for, because you probably won’t be covered if they are driving for money. Finally, knowing the type and limits of your coverage can help you decide whether it’s a good idea to let someone borrow your car.
Every Case Is Different
Because every auto insurance policy is different, the actual coverage youll have when driving a borrowed car can vary greatly. It will depend on the exact terms of your policy, the state you live in, the driver in question and the type of loss suffered.When it comes to your car insurance, there are coverages that can follow you as the driver, or your vehicle. Thats why having the appropriate car insurance coverage is so important. Contact your insurance agent to review your coverage and make sure youve got the protection you need.
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When Would Insurance Follow The Car
Now, letâs think about the inverse. You have your car complete with full coverage, and a friend or family member asks to drive your car. You will not have to worry because your auto insurance follows your car. Questions may begin to arise when people outside your household borrow your car.Hereâs when your car insurance follows the car itself:
- Family members – Immediate family members that may live with you, may already be listed on your insurance policy. Furthermore, extended families may also be covered under your carâs insurance when they come to town.
- Road trips – Traveling on the road is great because people often bond over the shared responsibility of driving. Your insurance applies to anyone in your party behind the wheel with no lapses in coverage.
- Family or friendâs car is indisposed – If someone you know and love has their vehicle in the shop receiving repairs and they ask to borrow your car, your auto insurance covers them while they drive where they need to.
Auto Insurance That Follows The Person
Liability insurance is one type of coverage that follows the person, not the car. It will pay for damages to other people and other people’s property that you’re found at fault for causing. The three types of liability insurance are person , accident and property .
So just how much coverage do you need? Well, that depends where you live. For example, Pennsylvania requires that all drivers carry a minimum of $15,000 in coverage for single-person injuries, $30,000 for total accident injuries, and $5,000 for property damage. However, this varies widely across states for example, at $100,000, Alaska has the highest requirements for multiple-injury coverage .
Medical payments and bodily injury insurance are two other types of coverage that follow the person, not the car. Medical payments coverage pays for any injuries that you or your passengers may incur in an accident, regardless of who’s at fault. However, if you already have decent health insurance, med pay coverage may be redundant — talk to your health insurance company if you’re not sure. Med pay coverage is usually optional, but some states do require it . Check with your state’s Department of Motor Vehicles or Department of Driver Services to find out what kinds of coverage are required and how much you need to be insured for.
This all means that even if you’re driving someone else’s car, you’re still covered if you meet two requirements:
Want to know more? Check out the links on the next page.
Regular Drivers May Be Excluded
Insurance might not cover other drivers who regularly drive the vehicle, as the insurance company might think the person should be listed on your policy.
For example, your car might be covered while your sister from out of town drives it, but it likely wont be while your roommate borrows your car for a weekly grocery run.
What If Someone Driving My Car Was In An Accident That Wasnt Their Fault
Lets say you let your sister take your car to pick up pizza you ordered. You get a frantic call from her telling you that she got into an accident, but fortunately it wasnt her fault. In this case, it normally wouldnt be yours or her insurance that takes the hit its the at-fault driver who would pay for any damages . Youll file a claim with the at-fault drivers insurance company and your insurance shouldnt be affected. Just make sure your sister knows to get all of their insurance info before taking off follow these tips if you get in a car accident.
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What If The Driver Is From Another State
In most cases, if the driver has permission, insurance will cover a driver from any state, but that is not always the case. It depends on policy terms and auto coverage. If the insured has MedPay or PIP coverage, and is driving a commercial or company vehicle, then that coverage will be primary. MedPay follows the driver, as does PIP.
Car Vs Driver Coverage
The answer isnt so cut-and-dry. Insurance coverage varies from insurer to insurer and policy to policy, but generally, there are coverages that can follow you or your car. There are several factors that determine whether and to what extent a person or vehicle is covered, including the names listed on the insurance policy, the state where you live and whether you have the permission to drive someone elses vehicle.
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Does Uninsured And Underinsured Motorist Coverage Insurance Follow The Car Or The Driver
If you are driving someone elses car or truck and you are injured in a crash caused by an at-fault driver who is either uninsured or underinsured, then you will likely recover UM or UIM benefits from you insurer and through your insurer for the vehicle you were driving .
The terms of both your policy and the policy covering the vehicle you are driving will determine whether your UM/UIM coverage or the coverage on the car is primary. The primary insurer has the duty to pay first before the secondary insurers duty to pay is triggered.
To make sure that your legal rights are preserved, we advise that you file a notice of claim with both your own UM/UIM insurer and the insurer for the vehicle you were driving.
Do You Have To Be 25 To Drive Someone Elses Car
Provided the young driver has reasonably clean driving record, no, theres no age restriction. This applies to both incidental and occasional use. The policyholder has the obligation to report regular, occasional drivers to the insurer. In the case of an inexperienced driver, additional premiums covering that drivers access to the car are likely. Since young drivers are statistically more likely to have accidents, their access to a vehicle increases its chances of incident. Unlike some provinces, Ontario permits the use of age as a risk determination factor.
There are compelling reasons, though, why a young driver should be listed on another persons policy. There is no age 25 magic number effect. Lower car insurance rates have more to do with a drivers experience and driving history. These factors commonly come together for many drivers around the age of 25. Rates decrease with every year of trouble-free driving. Adding a child to a parents policy begins the insurance history of the young driver. This provides a record of insurance coverage. If this record remains claims-free, then the driver has a better chance of achieving the lowest premiums at the youngest age.
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Injured In A Car Crash Call The Auto Accident Attorneys At Michigan Auto Law
If you were injured in a car crash in Michigan and have questions about your legal rights to pain and suffering compensation, economic damages and auto No-Fault insurance benefits, you can speak to an experienced auto accident lawyer at for a free consultation. You can also get help from an experienced No-Fault insurance attorney by visiting our contact page or you can use the chat feature on our website.
Adding Other Drivers To Your Car Insurance Policy
Your insurance provider will want to add a regular, but occasional, driver to your policy. A friend who borrows your car once every few months will not need to be named on your policy. However, a friend who uses your car every Monday to do their shopping is a regular driver. Inform your insurer to ensure coverage. If you add them, know their personal information and driving history is required. Also, if your insurer views their driving risk escalates the risk, expect to pay more to cover additional named drivers. Again, if the premium goes up, evaluate a few new auto insurance quotes since different auto insurance providers will weight this differently.
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