Does Car Insurance Follow the Car or the Driver?

A car owner’s insurance policy generally follows the car rather than the driver.

Here’s why:

• Primary coverage: The car insurance coverage attached to the vehicle will be the primary coverage, meaning it will be the first to pay when an accident happens.
• Permissive use: Should you lend your car to another person and they get in an accident while driving your vehicle with your permission, your auto insurance policy will typically cover all damages up to the policy limits set by your insurance company. This can be common for occasional or infrequent drivers. However, frequent drivers may need to be listed on your policy. Permissive use is usually limited to a specific number of times per year.
• Secondary coverage: If someone borrows your car and gets in an accident, the insurance for the person driving your vehicle might take effect as secondary coverage when damages exceed the limits of your auto policy.

There are, however, exceptions based on policy type, driver permission and state laws.

If someone, such as a child, spouse or roommate, regularly drives your vehicle, you should generally list them on your policy. This makes sure they are fully protected by your policy, since those driving under permissive use may receive less coverage than those explicitly listed on a policy. In addition, some policies require you to add all frequent drivers, and not doing so could lead to claim denials or policy cancellation.

If you or a loved one was in an accident involving someone driving a vehicle they didn’t own, our car accident lawyers can help you recover financial compensation for medical expenses, lost wages, pain, suffering, wrongful death and more.

We’ve been helping car accident victims since 1990 and have recovered in excess of $750,000,000 for our clients.

We get car accident victims to doctors who don’t charge them for treatment until their cases end.

We don’t charge any fee to car accident victims until we recover compensation for them. Our only fee ends up being a percentage of any compensation recovered.

Call us today for a FREE consultation at (800) 718-4658 or contact us if you or a loved one was injured or killed in a car accident.

Does Car Insurance Cover Other Drivers in California?

In California, insurance typically follows the car rather than the driver.

If someone else crashes your car, your policy should cover them, assuming they had permission to drive it.

If they have their own insurance policy, it may act as secondary coverage if damages exceed the limits of your insurance policy.

If someone driving your car is at fault for an accident, your policy’s coverage could cover medical bills or vehicle damage.

Exceptions to the Rule

• Excluded drivers: Your policy could exclude certain drivers. This means they won’t get covered when they drive your own car. Some policies let you exclude some drivers for a discount. You should review your insurance policy to understand who gets covered.
• Commercial use: If someone drives your car for a commercial reason, like delivery or ride-sharing, your insurance might not cover them. You might require a separate commercial policy for these activities.
• Named driver policies: Certain policies are known as “named driver” policies. This means they only cover those listed on the policy. When unlisted drivers borrow the vehicle and get into an accident, there may not be coverage.
• Policy and state variations: If insurance follows the driver or the car may vary based on your state as well as your insurance carrier and your insurance policy’s terms.
• Exceptions to permissive use: Permissive use coverage may not apply when drivers take cars without permission, or when accidents are caused by other drivers.
• Those living in your household: Some insurers may require that you list all licensed drivers who live in your home, no matter how often they drive your vehicle.
• Intoxicated or unlicensed drivers: Those driving under the influence or without a valid license won’t be covered, and may face personal liability and severe penalties. Knowingly letting an intoxicated or unlicensed person drive your vehicle may lead to personal liability or denial of coverage for you.
• Policy limitations: Policies may have higher deductibles or offer reduced coverage for permissive drivers. It’s best that you review your policy’s specifics or contact your insurance company to understand how your policy works regarding permissive use.
• Rented vehicles: Auto insurance may follow the driver rather than the vehicle when vehicles are rented. Should you not wish to need to file a claim through your insurance, you may purchase rental car insurance, or, alternately, pay using a credit card which offers primary coverage.

Who Should You Include on Your Car Insurance Policy?

As a vehicle owner, you will probably be the person who does insurance shopping, pays for policies and is the primary or principal driver. However, you should typically list other regular drivers on the policy, including:

• Members of your family who live in your household
• Roommates, such as significant others, who regularly drive your vehicle
• Others who regularly drive your vehicle but don’t live with you, like nannies or friends

You usually don’t need to list those who rarely drive your vehicles, like relatives who visit once or twice per year.

Are You Liable If Someone Else Drives Your Car and Gets in an Accident?

You may be wondering, “What happens if someone else is driving my car and gets in an accident?”

Here are some things to keep in mind:

• If a permissive user of your vehicle gets into an accident which is their fault, your auto insurance will usually be the primary coverage. The claim will go on your record, and this can potentially affect your rates.
• If the person who drives your vehicle isn’t at fault for an accident, the other driver’s insurance will cover the damages.
• If the person who gets in an accident lives in your household or regularly drives your car, your insurer may require you to list them on your policy. If you don’t do this, coverage might get denied when an accident occurs.
• If the person who gets in an accident is specifically excluded from your policy, there won’t be coverage, no matter if permission was given to drive the vehicle or not.
• If someone gets in an accident while using your vehicle for commercial purposes, there may not be coverage.
• If you allow an inexperienced, unlicensed or intoxicated driver to borrow your vehicle, coverage may be denied after an accident.
• The accident might not be covered by your insurance if the driver is committing an illegal act while driving.
• Your insurance may not cover an accident if someone stole your vehicle and crashed it.

What If I Crash Someone Else’s Car?

• If you get into an accident while driving someone else’s car with permission, typically, the vehicle’s insurance will end up being the primary coverage for injuries and damages caused rather than your own liability coverage or collision coverage. However, your insurance may be utilized as secondary coverage should damage exceed policy limits.
• If you’re found at fault for an accident, the car owner’s liability insurance will probably get used to cover other parties’ damages.
• If the other driver is found at fault for an accident, the other driver’s insurance will likely be the primary coverage involved.
• If you have auto insurance, your policy may cover things like medical bills if you have comprehensive or collision coverage and crash someone else’s car.
• It is illegal to drive without insurance in most places. If you get caught driving a vehicle which isn’t insured, even if you aren’t the owner, you may face penalties such as license suspension and fines.
• If you borrow a friend’s car regularly, you should get listed on their policy. Many policies consider regular use to be over 12 times per year.
• Should you drive somebody else’s car without permission, damages may not be covered by their insurance and you could get personally held liable.
• If you get into an accident while driving your friend’s car, the accident could impact your friend’s insurance rates.

Does the Person Who the Car Is Registered to Have to Be On the Insurance?

In general, whoever’s name is on the vehicle registration has to be on the vehicle’s insurance policy. The reason for this is insurance companies need an “insurable interest.” This means you possess a financial stake in the vehicle and would end up suffering a loss if it were stolen or damaged. Should your name not be on the registration or title, you usually can’t purchase standard insurance for the vehicle.

However, situations and exceptions exist where registered owners may not be sole policyholders, or others can be insured on policies:

• You drive the car frequently and live with the owner: The owner may add you as a named driver to the existing insurance.
• You’re receiving a vehicle as a gift: A good approach is to have the giver of the gift transfer the title to you so you can insure and register the car under your own name.
• You drive someone else’s vehicle regularly but don’t own a vehicle: You can sign up for a non-owner insurance policy covering your liability.
• You co-own a vehicle: Should you share ownership, both names should be on the policy and title.
• The vehicle is financed: Should you be helping with payments but aren’t the primary borrower, whoever is on the financing agreement has to be the primary policyholder, but you could get added as another driver.

It’s vital to be transparent with your insurer about who drives and owns the vehicle. Misrepresentation of this info may lead to policy cancellation or claim denial. Should you have questions, it’s best to call an insurance professional or agent to make sure your coverage is adequate.

How to Protect Yourself From Car Accident Liability

Prior to lending your vehicle to someone else, it’s a good idea to:

• Confirm their driver’s license is valid.
• Read your policy to understand permissive use restrictions and coverage limits.
• Discuss expectations with the person borrowing your vehicle, including deductibles and potential liability regarding damages.
• Only lend your vehicle to responsible drivers.
• List frequent drivers on your insurance policy.
• Review your policy and its permissive use terms so you know who is actually covered. The last thing you need is to be blindsided when the cost of a car accident exceeds your policy limits.
• Consider adding an umbrella policy for extra liability protection in severe crashes.

Contact Our California Car Accident Attorneys Today

Our experienced car accident attorneys have been helping those injured in accidents for over 35 years and have recovered hundreds of millions of dollars for clients.

We get injury victims to doctors who don’t charge until the case ends, and we don’t charge any fee until we recover compensation.

Call us today for a FREE consultation at (800) 718-4658 or contact us if you or a loved one was injured or killed in a car accident involving a driver who didn’t own the vehicle.