Does Car Insurance Cover the Car or the Driver?

by COUNTRY Financial

The answer is: it depends. In most accidents, a driver’s car insurance covers their car while their separate health insurance covers injuries.

But there are some types of insurance coverages that protect both the car and the driver. Here’s what to know if you’re looking for complete protection in an accident.

What insurance covers me or another driver of my car?

Here are some insurance types that’ll help protect you in an accident—whether you or someone else is driving your car. Some of these even extend to other drivers involved:

• Auto liability coverage: If the driver of your car has an accident that injures another person or damages their car, liability coverage will kick in to help pay for the other person’s medical bills and car repairs. Liability coverage protects you from paying the injured party’s costs out-of-pocket; without it, you might be required to do so even if you weren’t driving your car.
• Medical payments coverage: This coverage helps pay medical bills for the driver of your car and any passengers if injured in an accident. Coverage is provided regardless of who caused the accident. It’s usually optional and not available in all states. 
• Personal injury protection (PIP): PIP offers the same protection as medical payments coverage but is more comprehensive. It can help pay the driver and passengers for lost wages and other expenses.

What happens if someone driving my car has an accident?

Regardless of who’s driving your car in an accident, the person who caused the accident is liable for damages and it'll be their insurance that pays.

If someone you know drives your car (with your permission, a key distinction) and directly causes an accident, it’ll likely be your insurance that pays for damages. Your car caused it, your insurance pays for it. If the other driver causes the accident, their insurance will likely pay. 

The main exception to this is when an uninsured driver is behind the wheel of your car. If they’re in an accident and are found to be at fault, they’ll most likely be responsible for damages out of their own pocket.

When can someone else drive your car?

Someone you know can drive your car if you directly authorize them to, or if you’ve listed them on your car insurance policy. This is called permissive use in the insurance world.

Non-permissive use, on the other hand, describes someone borrowing your car without your permission. The good news is, if someone like a friend or family member takes your car without your permission, gets into an accident and is injured, your insurance would likely not be held accountable.

Final thoughts

If you’re wondering how to give both the driver and the car ample protection from accidents, see if one of the options above helps. 

If you’d like to know more about this or other insurance-related topics, talk to your insurance agent today—they can help you determine how much coverage you need and answer any questions.

Updated 3-26-25