When I Buy Car Insurance, WHAT am I Insuring?

When I Buy Car Insurance, WHAT am I Insuring?

It seems like a straightforward question, yet the answer can be a bit more complicated. “When you buy car insurance, WHAT ARE you insuring?” Are you insuring yourself as a driver? Are you insuring a vehicle? Perhaps you are insuring against financial damages from injuring another person or the car or other property. Let’s take a closer look at some of the aspects of automobile insurance.

All states have some form of financial liability laws that generally requires minimum levels of liability insurance. This liability coverage takes care of your legal responsibility to others for bodily injury or property damage. This follows the driver should they be driving a vehicle owned by someone else. In this instance, their own auto liability insurance will usually cover them in an accident.

That being said, in other circumstances, insurance usually follows the car. For example, when you have comprehensive and collision coverage, you are insuring a specific vehicle. This is why the mileage you travel, where you park your car and year, make and model will have such an impact on your insurance rates. Keep in mind, however, that there will be drivers that need to be listed as insureds on an automobile policy, such as members of your family that are of legal age. So while the insurance follows the car, the insureds must be named to be covered while driving the car.

It can get a bit more convoluted when you allow a friend or neighbor to drive your insured car. This can best be deciphered by reading your policy to see if your insurance will cover others who drive your car with permission. Often a policy will defer to the driver’s, not the owner’s coverage for protection.

When renting a car, whatever coverage you carry on your personal vehicle will generally transfer to the rental car. If you have liability coverage, that will transfer. If you have comprehensive and collision, that will transfer.

The ins and outs of auto insurance are just one reason having your own independent insurance agent makes so much sense. We are here to review your policy, answer your questions, and make sure you have the appropriate coverage for your particular situation. We invite you to contact us for your complimentary review and potential savings.


Do you have questions about your insurance? Find an insurance agent near you with our Agent Finder

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Buzz Your
Insurance Agent

Search for a local agent with our agent finder map.

Agent Finder

Want to learn more about our blog writer?

Read more about KayLynn's background.

Click Here

Search All Blogs

Search
Generic filters
Exact matches only
Search in title
Search in content
Search in excerpt

Why You Need Business Insurance Even if You Rent Your Business Space

You Don’t Need to Have a Bricks & Mortar Store to Benefit From Business Insurance

Why Life Insurance Should Be a Fundamental Part of Your Financial Plan

How Are You Protecting Your Money Machine?

The Ten Most Frequent Causes of Automobile Accidents

Powerful Steps You Can Take to Reduce Car Accidents

Whatever Happened to These Rock Stars?

They Created and Performed Some of the Greatest Music of Our Time

Etsy and Ebay and Work From Home Businesses

Signs Your Hobby May Becoming a Home-Based Business

“Do Women Live Longer Than Men?” and Answers to other Other Life Insurance Questions

Interesting Answers to Some Common Life Insurance Questions

How States Determine If You Have Car Insurance

“Trust But Verify” Is the Attitude Most States Take

Are You Asking the Right Questions About Homeowners Insurance?

The Right Answers Often Begin with the Right Questions

Smartphones: How and How Much We Use Them May Surprise You

See How National & Worldwide Trends Compare with Yours

Own a Rental? You May Need Business Insurance

Do You Have the Appropriate Insurance to Cover Your Investment Property?

Leave a Comment