Does Car Insurance Cover the Car or Driver?

Car insurance generally covers the car rather than the driver. However, exceptions exist depending on the policy’s terms and the situation. Car insurance rules can be confusing, and it can be challenging to understand what damages insurance covers after a crash. 

The stress of dealing with injuries, property damage, and the aftermath of the accident can make it hard to focus on the details of your policy. On top of that, you may face extra hurdles such as filing claims, determining fault, and resolving disputes with insurance companies, all of which can feel overwhelming.

You can explore your legal options with our Raleigh car accident lawyer. During a free consultation, we can help you determine liability, navigate insurance disputes, and pursue compensation for your injuries. 

What Does “Covering the Car” vs. “Covering the Driver” Mean?

Car insurance can work in two main ways. “Covering the car” means the insurance policy is tied to the vehicle, not the person driving it. For example, if someone borrows your car with your permission and gets into an accident, your policy might cover the damages.

“Covering the driver,” on the other hand, refers to when insurance follows the individual, no matter what car they are driving. Some policies offer both types of coverage, but it’s important to read the details of your plan to know for sure.

General Overview of Car Insurance

Car insurance is supposed to protect you financially if you’re in an accident. The two main types of coverage are:

• Liability coverage that covers damages and injuries to others if you’re at fault.
• Collision/comprehensive coverage that covers damage to your car from accidents, weather events, theft, or vandalism.

Most insurance policies are tied to the car, meaning they protect the vehicle listed on the policy. However, some policies include coverage for drivers in specific situations, such as if you’re using a rental car.

When Does Car Insurance Cover the Car?

Car insurance typically covers the car listed on the policy. This includes situations like:

• Damage from an accident, whether it’s your fault or not
• Theft or vandalism
• Weather-related damage, like hail or flooding

However, some policies list exclusions. These are specific situations where the policy won’t cover certain drivers or damages. For example, if someone not listed on your policy drives your car without permission, your insurance might not pay for an accident.

When Does Car Insurance Cover the Driver?

Some car insurance policies follow the driver, not just the car. For example:

• Personal liability coverage: This might apply if you borrow someone else’s car and cause an accident.
• Permissive drivers: If someone drives your car with your permission, your policy may cover them.

However, not all situations are covered. Some policies exclude coverage for certain drivers, like those who live in your household but aren’t listed on your policy.

Special Considerations for North Carolina Drivers

North Carolina has specific car insurance rules that every driver should know:

• Minimum insurance requirements: As the North Carolina Department of Transportation shares, the state’s insurance requirements include liability coverage of at least $30,000 for injuries per person, $60,000 for injuries per accident, and $25,000 for property damage.
• Uninsured and underinsured motorist coverage: These are mandatory in North Carolina and protect you if the other driver doesn’t have enough insurance.
• Rideshare and borrowed vehicles: If you drive for a rideshare service or borrow a car, your insurance may not fully cover you.

What Happens with Your Insurance After a Car Accident?

After a traffic accident, your car insurance coverage plays a big role in how things are handled. It can affect:

• Fault determination: Your insurer and the other driver’s insurer will look at the evidence to decide who caused the accident.
• Compensation: Your policy may cover damages to your car, medical bills, or repairs for others’ property.

Disputes often arise over whether the car or the driver’s insurance should pay crash damages. This is why it’s important to understand your policy and seek help if needed.

How Our Law Firm Can Help You Understand Your Coverage

Dealing with insurance companies after an accident can be stressful, especially when you must treat your injuries. While you focus on getting medical and rehabilitative care, our Raleigh personal injury lawyers will:

• Help you understand your coverage and file claims correctly
• Evaluate your losses, including medical bills, lost income, property damage, and pain and suffering
• Determine the full value of your claim and ensure you pursue fair compensation
• Advocate for you in disputes with insurers or other drivers
• Represent you in a lawsuit if you were injured due to someone else’s negligence

With our attorneys on your side, you can focus on recovering while we handle the legal and insurance issues in your case.

Steps to Take After a Car Accident in North Carolina

Knowing what to do after a car accident can make a big difference in protecting your rights and ensuring you get the compensation you deserve. Here are the key steps to follow:

• Check for injuries and call for help: Make sure everyone is safe and call 911 to report the accident. Medical attention should be your first priority.
• Document the accident scene: Take photos of the vehicles, the scene, and any visible injuries. Exchange contact and insurance information with the other driver but do not discuss or admit fault for the crash.
• File a police report: In North Carolina, you must report an accident that results in injury, death, or property damage exceeding $1,000. The police report will serve as an important document for your insurance claim and any legal action.
• Notify your insurance company: You don’t have long to report a car accident to your insurance company. Let your insurance company know about the accident as soon as possible. Be honest but cautious when describing what happened, as your statements could affect your claim.
• Consult our car accident lawyers: We can help you navigate the claims process, determine the value of your losses, and deal with insurance disputes. We will also ensure you meet North Carolina’s statute of limitations for filing a lawsuit.
• Meet the statute of limitations: North Carolina’s filing deadline for car accident lawsuits is three years from the date of the accident per G.S. § 1-52. Missing this deadline could prevent you from recovering compensation, so act quickly.

Don’t Know if Your Insurance Covers the Car or Driver? Call Us

If you’re unsure about your coverage or need help after a car accident, don’t wait to contact us. We can explain if your car insurance covers the car, the driver, or both and get you the answers you need. 

At Whitley Law Firm, we’ve been helping injured North Carolinians navigate the complexities of car insurance and accident claims since 1974. 

With over 50 years of experience, we have the knowledge and commitment to guide you through every step of the process. We promise to return all phone calls within 24 hours, and our team is here for you 24/7. Call us today for your free consultation.