One aspect of car insurance that seems to cause the most confusion among drivers is: does car insurance cover the car or the driver? The answer is a little bit of both, depending on what type of insurance you have. Here is a comprehensive guide to coverage that follows the person and coverage that stays with the car.
Insurance that covers the vehicle, regardless of who is driving.
If your car is covered by what’s called a comprehensive policy, then not only is it protected from non-accident damage like theft, vandalism, or natural disasters, but the vehicle is even covered when operated by drivers other than yourself. These drivers, who you’ve given permission to get behind the wheel, are called permissive drivers. Keep in mind that this insurance will likely only cover the damage to your car, not necessarily another driver’s car or any property damaged by your car. In addition to comprehensive insurance, collision insurance also stays with the car. This type of insurance covers damage sustained during a collision, even if you are not driving it (as long as the driver is a permissive driver).
Insurance that follows the person, not the car.
Liability insurance follows the person, not the car. It will pay for damage to property and injury to people if you are found at fault in an accident. Under liability insurance, there are three basic types: “person” which covers a person injured in an accident, “accident” which is the total coverage for all injured parties, and “property” which covers property and vehicle damage. How much coverage you need really depends on where you live. While insurance is required in 47 states, the details vary greatly. Some states require a minimum of $15,000 for coverage in single-person injuries, $30,000 for total accident injuries, and at least $5,000 for property damage. An insurance expert can explain the requirements in your specific area.
Medical Payments and Bodily Injury Insurance
There are further types of auto insurance that are not usually required by law. Medical payments (or “med pay” as it’s called in the industry) pays for any injuries to you or your passengers no matter who is at fault. This is often not necessary, because if you have good health insurance coverage, med pay coverage will not likely be needed. Bodily injury insurance (and most med pay policies) will cover you even if you’re driving someone else’s car–with a few caveats: the owner of the car must carry insurance and you must be insured as a driver.
The various types of auto insurance can seem overwhelming, but hopefully this article helps shed some light on when your insurance provider will cover you or your car. To learn more about auto insurance, or to compare quotes for auto insurance in Las Vegas, contact Accupro Insurance Service at (702) 251-4949 to speak to a qualified insurance specialist today.