The question regarding, “Who is included in my auto insurance coverage?” is one we hear often here at our Greensboro Auto Insurance office and one for which there is no cut and dried answer. These days, there is no “standard” auto insurance policy, and each car insurance contract sold can be custom designed to more precisely fit the needs of the purchasing policyholder. There are, however, some typical commonalities that may apply to most insurance policies.
In most cases, your Greensboro auto insurance policy covers you, other licensed members living in your home and named in your policy and, in most cases, any licensed driver to whom you give permission to drive your car. These specifics don’t necessarily hold true on every car insurance policy and you should be sure to read and understand the specifics of your individual coverage. The best place to start when researching just what your auto policy covers is the list of exclusions. Any questions should be directed toward your trusted insurance agent or broker.
Some Insurance Follows the Vehicle, Some Follows the Driver
The one type of auto insurance required by law in all but one U.S. state (New Hampshire) is liability coverage. This type of insurance helps pay for damages you cause to others while you’re driving. Each state has a specific minimum amount of liability coverage required of drivers – amounts designed to cover bodily injury and property damage others suffer due to your negligence – and these liability coverage amounts are typically expressed in a series of three numbers such as 30/60/25. These numbers represent the thousands of dollars (maximum) your insurance company will pay towards claims of single victim bodily injury, multiple victim bodily injuries and property damages from single accidents.
Liability coverage, unlike other types of auto coverage such as collision or comprehensive, follows the driver, regardless of what vehicle he or she is driving, assuming permission has been given to drive that vehicle.
Collision insurance pays when your car hits or is hit by an object such as a tree or another car, and comprehensive insurance pays for losses due to other than collision incidents such as theft, vandalism or storm damage. These coverages typically follow your vehicle and will pay regardless of who is driving, assuming they’re authorized to drive your vehicle. Since no two policies are identical, however, check yours closely to determine your exact coverage.