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 includes liability coverage, medical payments 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 payments coverage helps pay for your own injuries and injuries of your passengers 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 in the event of an accident. In situations where there’s an accident and the driver was not the vehicle owner, the driver’s insurance will apply.
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 own insurance may provide coverage.
Does liability insurance cover any car I drive?
Liability insurance under your own policy should cover you when driving someone else’s car with permission, but your coverage may not be primary. In the event of an accident, this means that the owner’s policy will likely 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 own comprehensive and collision coverage (if you bought those optional coverages) 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, the employer’s commercial auto insurance will usually cover your business use of the vehicle. 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 typically does not cover business use of a vehicle, unless there is additional coverage for business use provided by an endorsement.
How does permissive use affect coverage?
Most personal auto insurance policies provide coverage for people operating your vehicle with your permission, even if they are not listed on your policy.
If someone is operating your vehicle without permission and they are involved in an accident, the insurance company may deny coverage for the accident. However, you might have coverage if you bought comprehensive coverage and your vehicle was stolen. 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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