Borrowing a friend’s car, renting a car on vacation or driving a company car are some of the common situations where you may operate a car that isn’t yours. When you find yourself driving a car you don’t own, does your car insurance cover it?
What insurance coverage applies to any car?
Whether your insurance coverage applies to another car depends on the coverage you have, what state you live in, and the specifics of your individual policy.
A typical auto insurance policy is made up of liability coverage, medical coverage, and optional coverage for damage to your vehicle.
Liability coverage helps protect you if you injure someone or damage someone’s property while operating a car. Medical coverage helps pay for your own injuries sustained in an accident. Comprehensive coverage and collision coverage are optional coverages that help pay for damage to your own vehicle.
In most cases, the vehicle owner’s coverage will be primary for accidents. In situations where there’s an accident and the driver was not the vehicle owner, the driver’s insurance
For example, say you borrow a friend’s car and cause an accident. Your friend’s insurance would be primary, and if it’s not enough to pay for the injuries or damages, your insurance may provide coverage.
Does liability insurance cover any car I drive?
Liability insurance will cover cars that you drive with permission from the owner, but your coverage may not be primary. In the event of an accident, this means that the owner’s policy will apply before yours does.
Does comprehensive and collision insurance cover any car I drive?
Comprehensive and collision insurance will only cover the policy vehicle and not other cars you drive with the owner’s permission. Rental cars are an exception, however.
What type of insurance covers rental cars?
In the case of rental cars, your personal car insurance will apply to cars you rent. Generally, your own comprehensive and collision coverage will cover your rental without the need for additional rental car insurance. This can vary between policies, so check with your insurance provider for specifics.
Company car insurance
If you’re driving a vehicle owned by your employer, their commercial auto insurance will usually cover business use of the car. Keep in mind that using a company car for personal errands may not be covered, unless explicitly allowed by that commercial auto policy.
Personal auto insurance will never cover business use of a vehicle, unless there is additional coverage as an endorsement for business use.
How does permissive use affect coverage?
Permissive use is a clause in an auto insurance policy that extends coverage to anyone you allow to use your car. If your insurance policy allows permissive use, your car insurance coverage will apply to anyone who drives your car with your permission. Without a permissive use clause in your policy, the insurance company may deny a claim if someone is involved in an accident with your car. Check with your insurance carrier for the specific details of your policy.
Conclusion – Does car insurance cover any car you drive
Driving a car you don’t own does not mean you are automatically covered by your own insurance. While many personal auto policies extend coverage to other vehicles in certain conditions, it may not always be the case for your policy. Before driving a car that isn’t yours, review your policy and the owner’s policy to be sure you’re covered.
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