Does Insurance Follow the Car Or The Driver?
There are so many factors as to when does insurance follow the car or the driver? In general, most insurance follows the car, but a few policy types follow both the driver and the car. There are various reasons for this, and each has its own benefit that the other does not have. There are some policy types that follow both the car and the person, and those are called fully comprehensive, collision, uninsured motorist, underinsured motorist, etc.
Fully comprehensive coverage, for instance, is the most common type of coverage a driver will get from an insurance agency. This coverage will cover the damages incurred by both the insured vehicle and any other cars or property that may be damaged or destroyed in an accident. The damage covered by insurance can go far beyond just the basic vehicle damage.
For instance, the policy may include coverage for any medical payments that may be required after an accident. This could mean hospital bills and all related costs. It could also mean lost wages and any ongoing medical care that a person would have to continue to pay for once he or she is able to get back to work. Both these things are extremely important for someone who is disabled and unable to work. Without coverage, these individuals would simply have to live on the public assistance provided through their employer, which is often a drain on any financial situation.
Underinsured motorist coverage is a policy that follows the car but not the drivers. The policy is actually designed to protect the driver from losses that are not handled by the insured vehicle. If there was an accident where the insured was in another vehicle without adequate insurance, the underinsured motorist policy would pay out to help that driver repair or replace his or her vehicle. Some people call this type of coverage “comprehensive coverage”. Some people prefer to call it comprehensive because it provides for more than just vehicle damage.
Collision and comprehensive coverage are both considered collision policies. They both pay for repairs and replacement of the insured vehicle. However, there is a difference between the two types. In a collision policy, damages to the insured vehicle happen even if the other vehicle is being damaged at the same time. And in a comprehensive policy, damages to the vehicle happen even if the other vehicle is being damaged at the same time.
The next question that people often ask about insurance is whether or not they can choose their own plan. It is possible to choose your own plan, but this option is not available to everyone. If a person has uninsured motorist coverage and an accident, the other driver will be responsible for the other’s liability coverage. This means that if the other driver had no coverage at all, then the person with the uninsured motorist coverage would be responsible for the repair costs.
Non-owner auto insurance is usually purchased by people who own a car and want additional coverage but do not have enough money to purchase the full liability and non-collision coverage from the manufacturer. Non-owner plans will cover the other driver for any accidents that he or she causes. It will not cover the car itself. Some non-owner providers require the vehicle owner to have liability coverage as well as non-collision coverage.
Every auto policy has a permissive or non-permissive rider. A permissive rider is one that is put in place to specifically suit the needs of the insured party. A non-permissive rider is one that is put in place to specifically suit the needs of the insured party. Some examples of non-permissive rider are: no-fault insurance policies involved with hit-and-run accidents, specific locations that are excluded from coverage, and the age of the drivers involved in the accident. If you are looking to purchase an individual policy, make sure you inquire about the permissive and non-permissive rider on the policy you are considering so you can get the best protection possible.