Does Auto Insurance Policy Cover The Car Or The Person?

Published: October 3, 2021

Does auto insurance cover the car or the person? When you buy car insurance, it will be listed on your policy, and the coverage will follow the vehicle the vehicle for when you loan it to another person. The policy follows the driver’s license.

This is why it’s so important that people who drive your car know where your proof of insurance and registration is, if they are pulled over for a traffic violation. If you do not own a vehicle, you can have non-owners auto insurance in which case that insurance would cover you, but normally as secondary insurance on a vehicle. The insurance of the owner of the car, the one you borrowed since as a non-owner you would not have one of your own, would be the primary coverage provider.

Some get confused and believe that Uninsured Motorist coverage pays for other drivers. Should you pay for auto insurance that covers other drivers? That question is unrelated to UM coverage. UM coverage pays for you if the other driver is uninsured. It is good protection, especially in states that don’t strictly enforce their insurance requirement laws. You can check with your business policy insurance carrier but normally that business insurance auto policy is for company cars and would not extend to your personal vehicle unless your car is listed on the business policy.

Another factor is that most states require the owner of a motor vehicle to carry auto insurance, or another form of financial responsibility, on their vehicle in order to have the car registered. Therefore, unless your company’s policy is extended to cover your vehicle, you would need to purchase your own. It’s up to the other person if they are driving.

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