Reader question:

If you have driver car insurance, but you drive someone else’s vehicle, and they also have insurance, then if you have to make a claim, who do you make it with, your car insurance company or theirs?

Ray

Good question, Ray.

This is a question that comes up a lot because the law in this case can confuse a lot of people. It’s actually pretty clear, but it’s not something that can’t be guessed at. If you look at how your car insurance rates fluctuate, most of the factors that go into the higher prices that you pay have to do with things such as the driver on the policy rather than the car being driven. While it’s true that a sports car will send driver car insurance rates shooting up, it is a lot worse when you add a teenager, for example. This makes it seem like the insurance would follow the person rather than the vehicle covered under the driver car insurance policy. This, however, is not the case.

In most situations, the car insurance policy sticks to the car that is listed on the policy and covers anybody who would drive that same car with permission. There are some states where this rule does not apply, but they are few and far between. Driving someone else’s insured car does not make your own car insurance policy void, though. For example, if they don’t have personal injury protection, but you do, then you will still be covered under that type of coverage from your driver car insurance policy. Also, if they don’t have enough coverage to cover everything necessary, then once their car insurance limits run out, your own kick in.

Cheers,

Fashun Guadarrama.