Does Auto Insurance Follow the Car or Driver?

Auto insurance typically follows the car — not the driver. It can vary depending on the insurer, but people listed on the policy — such as spouses or other household members — should be covered for liability and the vehicle’s physical damage.

But what if a friend or relative asks to borrow your vehicle and it is involved in an auto accident?

Your insurance should cover any damages up to the limits of your policy (minus the deductible), provided you permitted someone not listed on your policy the temporary use of your vehicle (unless the policy expressly excludes them or they are paying you for the use of your car).

Generally, your policy should transfer to the person driving your car, including liability protection and comprehensive/collision up to the policy limit(s).

However, insurance policies and regulations can vary. Factors that can affect whether auto insurance follows the car include:

• The state you reside in
• Insurance company
• Names on the policy
• If the driver had the car owner’s permission to use the vehicle
• For a period of time, the vehicle will be garaged away from the policy address

To be safe, check with your insurer to understand your coverage before lending your car to someone you trust.