Are you planning to buy insurance for your car? We can relate to the tons of questions you might have. Many vehicle owners find it challenging to decide between vehicle and driver’s insurance. If you think they are the same, the answer is no. Driver’s insurance is related to the driver, whereas auto insurance has everything to do with the vehicle. Does insurance follow the car or the driver? We will find out in this read by reviewing different factors. Let’s get started.

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Understanding Car Insurance Coverage

Car insurance is usually associated with the vehicle. When you buy an auto insurance coverage plan, it covers your vehicle’s damages, liability claims, and other relevant expenses (resulting from road accidents or incidents involving your car). Generally, auto insurance is of three categories.

Collision Insurance Coverage

Collision coverage protects the insured vehicle against damages caused by collisions with other cars or objects. This type of coverage is only applicable when the conditions of collision are fulfilled.

Comprehensive Insurance Coverage

Comprehensive coverage is a common auto insurance type that offers protection to the insured vehicle against damages caused by vandalism, theft, fire, hail, falling objects, and other events (non-collision).

Liability Insurance Coverage

Liability coverage refers to insurance that applies when the insured car causes property damage or injuries in an accident. This type of coverage offers financial assistance to the victims.

Why Should You Choose Car Insurance?

When asking, “Does insurance follow the driver or the car?” understanding the advantages of each insurance is crucial. Here, we have covered the benefits of car insurance to help you understand why you need it.

Financial Coverage

One of the major benefits of car insurance is financial coverage. You are always at risk of road accidents when driving your car. Even the slightest bump can cause part damage, requiring replacements. When you have auto insurance, your coverage plan covers all the repair costs. Additionally, you can get financial assistance for your medical expenses and legal fees in the case of road accidents.

Many states require vehicle owners to have a minimum level of liability coverage to ensure everyone’s financial security. If your vehicle causes a road accident and the passengers in the other car(s) face injuries, their medical expenses will be carried out from your liability coverage. This is also true for vehicle damages.

Peace of Mind

Vehicle insurance gives you the peace of mind. Vehicle repairs can be costly. Not every car owner can afford the full costs of part replacements. When you have auto insurance, you can let go of your financial worries and receive thorough coverage from your insurance provider.

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Understanding Driver’s Insurance Coverage

Driver’s insurance or personal auto insurance refers to the coverage associated with the driver. It follows the driver regardless of the vehicle they drive. Typically, driver’s insurance offers liability coverage in different (applicable) scenarios. The terms and conditions of the coverage may vary based on the plan you choose.

Why Should You Choose Driver’s Insurance?

Driver’s insurance can benefit you in various ways. Before you decide on it, knowing how it benefits you is important. We have covered the top advantages of personal auto insurance below.

Driver’s Protection

When you get car insurance, the coverage relies on the vehicle you own. This means that driving another vehicle may not get you the benefits you can experience with your own car. While valid, driver’s insurance offers your liability coverage regardless of the car you drive. When caught in an accident, your driver’s insurance comes into action to cover your expenses. It is one of the reasons why driver’s insurance is also known as non-owner car insurance.

Important for Car Shares

Driver’s insurance is the best choice if you frequently rent or borrow a car. In such cases, vehicle insurance may not be your ideal choice. You can ensure your safety with personal auto insurance whether you drive a rental car or borrow it from a friend.

Lower Premiums

An important benefit of driver’s insurance is lower premiums as compared to comprehensive coverage. Sometimes, people buy comprehensive car insurance without analyzing their needs. They are not frequent drivers. However, they incur high premiums based on their coverage plan and insurance provider’s policy. With driver’s insurance, you can save those extra costs on paying premiums.

Does Insurance Follow the Car or the Driver? The Right Approach

So, does insurance follow the car or the driver? It depends on your needs. When planning to buy insurance, you may keep a few factors in check to determine which insurance type is more suitable for you. We have covered them below to help you decide.

Frequency of Vehicle Changes

Some vehicle owners love to drive different cars. They take car collection as a hobby and buy unique vehicles every few years. Auto insurance may not fit their needs well. If you change your vehicle frequently or drive different cars more often, opting for driver’s insurance may suit you better. This way, you do not have to bind yourself to a particular car when heading out for a road trip or for commuting purposes.

Seeking help from an insurance expert in your city can help you decide on the best option. You can also compare insurance plans offered for drivers and cars to choose your fit.

Vehicle’s Value

Despite the rising inflation, a lot of vehicle owners prefer to buy new and expensive cars. They prefer new models to avoid maintenance issues and to stay relevant in the competitive market. If you share similar interests and like to buy expensive cars, comprehensive car insurance may be your better option. Car parts for new models can be too costly. Comprehensive coverage can save you from bearing the financial impact of vehicle damages.

Before you buy an auto insurance plan for your new vehicle, we recommend comparing different insurance companies and their policies to decide on the best option.

Driving Habits

Vehicle owners vary in their driving habits. Some love to keep their cars clean and intact, while others opt for relatively rough usage. If you have a clean driving record with a minimal accident and collision history, driver’s insurance may suit you well. Car insurance is handy for those who frequently bump cars into other vehicles or objects.

If you are unsure about your driving habits and want to decide between auto and driver’s insurance, we recommend seeking an insurance expert’s help.

State’s Laws

Your state’s laws have everything to do with your insurance policy decision. A lot of states require car owners to have a minimal coverage level for owning a vehicle. In such cases, you may need auto insurance regardless of your driver’s insurance status.

To avoid later problems, you may check your state’s auto insurance requirements before purchasing a policy.

The Takeaway

Does insurance follow the driver or the car? The above details can help you find the right answer to this question. We have covered everything, from car insurance benefits to driver’s insurance advantages, to help you decide on the best option. If you want to compare different auto insurance plans to get the best rates, check out Bind Right today and get started with the process.