Who holds the policy?
The owner of the vehicle will generally hold the insurance policy. When applying for a policy the insurance company will look mostly into the person's record who's purchasing the policy and the primary drivers. An insurance company will also look into the records of secondary drivers. If these secondary drivers are teens or have many citations expect your insurance rates to be a bit steeper.
When purchasing an auto insurance policy it's important to understand who's covered. The policy application will ask for the names of all persons living in the house that will be operating the vehicle, how much they're going to use it, etcetera. It's important that you list all these drivers on the policy. If someone living in your house is involved in an accident who is not listed on the policy, your auto insurance may deny your claim.
Can another person borrow your car?
If a driver outside of your household borrows your car and is involved in an accident, your insurance should still cover the damages. Even if this person has their own car and even their own insurance. This is because insurance follows the auto and not the driver.
What's covered and what's not?
When purchasing an auto insurance policy, it's important to read over the coverages you have. Getting a policy with only the state minimum coverages is risky and ill advised. Before buying it, look over the coverages and make sure they're adequate and affordable should you be at fault in an accident.
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