Does Car Insurance Cover the Car or the Driver?

If you own a car, you need car insurance to prove you can financially pay for any damage caused by an accident. States generally require you to have a minimum amount of insurance on a vehicle. However, lenders may stipulate you must carry full coverage when you pay on an auto loan.

Insurance can be confusing and frustrating as you navigate purchasing a new or pre-owned vehicle. Because of that, many Sartell drivers ask us questions, like:

• What type of insurance coverage do I need?
• What does full car insurance cover?
• Is my child covered under my car insurance?
• Is insurance expensive for my young child?

Our finance team is happy to answer these and other auto insurance questions you have. Read on to learn more!

Does Car Insurance Cover the Car or the Driver of My Vehicle?

The answer depends on a few things. It starts with the type of insurance coverage you have. There are types of insurance that will cover the car and others that cover the driver.

With that said:

• Comprehensive, collision, and liability insurance may cover the car and drivers not on the policy.
• Liability may cover the driver and provide coverage when the insured person is driving someone else’s vehicle, like a rental car, a dealership rental car, or a friend’s car.

Why is the liability coverage mentioned in both bullet points? This is because insurance policies sometimes cover the same situation, so one policy is often considered the primary coverage. The policy will then pay for everything until it hits its limit, and then the secondary coverage may take care of the excess expenses that your primary policy doesn’t cover.

Comprehensive vs. Liability Auto Insurance

What does full car insurance cover? This is not a specific type of policy. It’s actually a combination of coverage. Having comprehensive, collision, and liability insurance would be like having full coverage insurance. What’s the difference between these three types of car insurance?

Comprehensive and collision auto insurance will cover the insured vehicle. It covers damages that happen to the insured vehicle as a result of vandalism or an accident. Liability insurance coverage on the auto policy covers the driver no matter whose vehicle is being driven, given that it’s an eligible vehicle.

Your passengers, including children, are generally covered by your insurance. It will also cover any licensed drivers in your household and anyone who drives your car and isn’t covered by their own policy. You just need to make sure you have your own vehicle insurance policy that covers those situations.

Learn More About Auto Insurance at Eich Mazda in Saint Cloud

Auto insurance and coverage can get confusing. That’s why our knowledgeable team can ease your stress when buying car insurance. When you’re ready to buy a car from us, we’re happy to help you put one in your Sauk Rapids or Saint Joseph garage!