The simple answer is that car insurance typically covers the car, rather than the individual driver. But, coverage varies depending on your insurance policy, the driver’s relationship to the car owner, and whether or not they had permission to use the car.
Let’s break down everything you need to know about when car insurance covers the car, the driver, or both.
TL;DR
- Car insurance generally follows the car, meaning if someone drives your car with permission, your policy usually covers them.
- If someone regularly drives your car, they almost always need to be listed as an additional driver on your policy.
- While car insurance usually follows the car, there are some coverages that are designed to protect the driver.
- Your policy typically won’t cover someone driving your car without your permission or for commercial use.
Why does car insurance cover the car, not the driver?
Because the car is the constant risk for insurers—it can get into accidents, be stolen, or damaged no matter who’s behind the wheel. It also allows the owner to stay in control of how their car is covered, even if someone else takes it for a spin.
Imagine this: It’s taco night with friends, and you suddenly realize you forgot to buy cheese. A friend offers to grab some from the store, but needs to borrow your car to get there. With your permission, your friend—licensed and responsible, despite the initial oversight of showing up without cheese in the first place—takes the car. Unfortunately, they rear-end another car, resulting in $5,000 worth of property damage to the other car, and $2,000 of damage to yours.
Here’s how the coverage could work:
- Your liability coverage covers the damage to the other driver’s car. If you have a $25,000 property damage liability limit, your coverage would be sufficient in this scenario to cover the damage. But, if the damage had exceeded your coverage limit, your friend’s car insurance policy could step in to cover the rest of the costs.
- Your collision coverage would cover the damage to your car–minus your deductible. For instance, let’s say you had collision coverage with a $500 deductible, and a limit up to your car’s actual cash value. Your insurer would pay you $1,500 to fix the damage to your car.
How can the driver impact car insurance coverage?
Even though car insurance follows the car, not the driver, the person behind the wheel can affect coverage. An obvious example of this is when someone uses your car without your permission. This would be an exclusion related to a driver, also known as non-permissive use.
Picture this: Your friend asks to borrow your car for a quick errand. You say no because the brakes are acting up and you’re planning to have them checked. Alex takes your car anyway, and rear-ends another car at a red light, causing damage to both cars.
Since Alex drove the car without your explicit permission, this would be classified as non-permissive use. Because your insurance policy only covers people with permission to use the car, it’s unlikely your insurer would cover the damages in this situation. Any liability for the accident would generally fall on Alex, not your insurance. Oof.
There are a few other situations where coverage typically doesn’t apply, including:
- Excluded drivers who are explicitly named in your policy as not being covered
- Commercial use of a personal car (like ridesharing or delivery services)
- Long-term use by someone not listed on your policy (such as letting your roommate use your car for a month while you’re away on a business trip)
When in doubt, it’s always a good idea to check your policy exclusions. When it comes to people who drive your car and live with you, you’ll need to get them added to your policy as an additional driver.
Does liability coverage cover drivers?
Liability insurance covers the car, not the driver. It’s designed to cover damages caused by whoever is at fault while driving your insured car.
For example, let’s say you let your neighbor borrow your car and they accidentally hit a light pole at the local mall, causing $2,000 in property damage. Since your neighbor had your permission to borrow your car, your policy could pay for the damages up to your liability coverage limits.
Keep in mind: If they have their own policy, it may act as secondary coverage if the damages exceeded your liability policy limits.
How does car insurance cover my car?
Curious about how your car insurance protects your vehicle? Here’s a breakdown of key types of coverage and what they offer:
Collision coverage
Collision coverage helps pay for repairs to your car if you’re in an accident, even if the driver of your vehicle was at fault. For example, if your friend rear-ends another vehicle and your bumper gets smashed, collision coverage could help cover the repair costs to your car. The typical coverage amount is up to your car’s actual cash value, minus your deductible.
Comprehensive coverage
Comprehensive coverage steps in for situations like theft, vandalism, or weather-related damage. For instance, if a tree branch falls on your parked car during a storm, this coverage can handle the repair costs. The amount covered is based on your car’s actual cash value, minus the deductible.
Liability insurance coverage
Liability insurance covers damage or injuries you or someone driving your car with permission causes to others. For example, if your friend accidentally hits another car and damages their door while driving your car, your liability coverage can help pay for the repairs to the other driver’s car. Your coverage limits will depend on your policy.
Uninsured motorist coverage
If you or someone driving your car is hit by a driver without insurance, uninsured motorist coverage protects you, and uninsured motorist property damage would cover your car. This coverage could help pay for repair costs if an uninsured driver runs a stop sign and hits your car. Keep in mind that this coverage works differently in different states.
While “full coverage” isn’t really a thing, you can set yourself up for maximum protection with the combination of liability, comprehensive, and collision coverage—to provide well-rounded protection for you and your car. Pro-tip: if you’re leasing or financing your car, you may be required to get these coverages anyway.
When does car insurance cover the driver?
While car insurance generally follows the car, there are specific coverages designed to protect the driver in the event of injuries—namely personal injury protection (aka, PIP) and medical payments coverage (aka, MedPay).
PIP is mainly used in no-fault states and helps cover things like medical bills, lost wages, and rehab costs for the driver after an accident, no matter who’s at fault. It usually comes with higher coverage limits, typically between $10,000 and $15,000, and is required in some states, while optional or not offered in others.
MedPay, on the other hand, offers more basic coverage for things like ambulance rides and doctor visits, no matter who’s at fault. Unlike PIP, it won’t cover lost wages or wider expenses and usually comes with lower limits, typically between $1,000 and $10,000.
What should I do if my car gets damaged?
If your car is damaged–whether from an accident with another car, or an event out of their control like vandalism when it’s parked–here’s what to do next, regardless of who was driving:
- Make sure everyone is safe: Get to a safe location, and call emergency services if needed.
- File a police report: For theft, vandalism, or major accidents, you usually need a police report to file an insurance claim.
- Document details: Take photos of the damage, collect witness information, and note the other driver’s insurance details if there is one.
- Gather the driver’s information: If someone was driving your car with your permission, have them provide their information that may be necessary for claims processing,like their drivers license number or their car insurance policy number.
- Notify your insurer: Contact your insurance company promptly to report the accident, and file your claim.
At Lemonade, we designed the digital claims process to be as intuitive as possible. Just submit your claim through the app with AI Jim, and it’ll go straight to one of our claims advocates for a fast and thorough review.
Before we go…
At its core, car insurance generally follows the car, meaning your policy often provides coverage whether you’re driving or someone else is behind the wheel.
Want to make sure you’re covered for life’s twists and turns? Get a quote today.
FAQs
Can I exclude a ‘household member’ from my car insurance?
Yes, many auto insurance policies allow you to exclude specific individuals, such as a roommate, from your coverage in order to keep your premiums lower. This can be a helpful option if the excluded person doesn’t need to drive your car or if they pose a higher risk that increases your insurance rates.
Remember, if they drive your car, the excluded driver will not be covered under any circumstances, meaning any accidents or damages that happen while they are driving would not be covered by your policy.
What happens if the person borrowing my car doesn’t have insurance?
Your insurance policy will act as the primary coverage, meaning it will handle the initial costs of damages up to your policy limits. But, if the total damages exceed the coverage provided by your policy, the at-fault driver could be held financially responsible for covering the remaining expenses.
Does my car insurance cover me in a rental car?
Usually yes. In most cases, your collision and liability from your personal car insurance will extend to your rental car. However, it’s a good idea to confirm this with your insurance provider before declining the coverage offered by the rental agency.
How does adding a driver affect premiums?
Generally, adding high-risk drivers, such as those with past traffic violations, to your car insurance policy can increase your premiums. This is because they are generally considered more likely to be involved in accidents, making them a higher risk for insurers.
On the flip-side, adding an experienced driver with a great driving record could potentially decrease your premiums.
Can I drive someone else’s car if I have my own insurance?
Yes, you can drive someone else’s car, and if their insurance policy allows permissive use, their coverage would apply first if you’re in an accident. Your own insurance might act as secondary coverage if needed, like if the damages exceed their policy limits. Just remember to make sure you have their permission before borrowing the car.
A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage and discounts may not be available in all states.
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