Becoming an Adult

Is Auto Insurance Designed To Cover The Car Or The Policyholder?

29 August 2019

Robin King

One of the big questions people often wonder when it comes to car insurance is whether the policy you buy covers the car you own or the policyholder, which would be you if you are buying an auto insurance policy. The answer to this question may seem like it should be simple, but it really is not, as it depends on the type of coverage you are buying with your policy.

There are different types of coverage to choose from

The first thing to know about car insurance is that there are a lot of different types of policies and coverage to choose from, and the type of coverage you have will determine the answer to this question. If you have a policy that includes collision, comprehensive, and liability coverage, you are pretty much covering all the bases you have for your auto insurance needs. Having these three types of coverage can protect you from just about any problem you might experience while driving, but that is not the only thing to understand about this.

Your policy will protect most drivers if they drive your car

When you have liability coverage on your car, which is the most basic type of auto insurance you can buy, it will protect other drivers and other cars that are hurt or damaged from an accident that you cause. This is true also for anyone that drives your car. If a friend drives your car and pulls out in front of someone, your policy will generally cover the costs of damages to the other car, but liability coverage does not protect your car. In order to have protection over your car in this situation, you would need collision coverage.

In most cases, the coverage you have would cover accidents no matter who was driving your car, as auto insurance covers a car and not necessarily a driver. Rates, though, are determined by a lot of factors, including a driver's driving record. If there is a person listed on your policy as an excluded driver, you should never let the person drive your car, as your policy would not cover a claim if this person was driving.

You will have coverage if you drive someone else's car

The other thing to realize is that your own policy also covers you and not just your car. If you ever borrow someone else's car and wreck it, you could file a claim with your own policy instead of the car owner's policy, and your policy should cover the claim.

As you can see, auto insurance covers both the car and the policyholder, but in different ways and situations. If you have any questions about your policy or auto insurance in general, talk to an auto insurance agent today.

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