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Insurance Coverage

Does Insurance Follow The Car Or The Driver?

Does Insurance Follow The Car Or The Driver

Generally, the answer to the question of does insurance follow the car or the driver in Michigan is that auto No-Fault insurance coverage will follow the driver, but depending on the contract language of your policy, it can also follow the vehicle. Liability exposure will almost always include both.

Optional but very important insurance coverage like uninsured, underinsured, and collision insurance coverage can follow both the car and the driver.

Does No-Fault insurance follow the car or the driver?

If you have your own auto insurance policy in which you are the named insured and you are injured in a car crash while driving someone else’s car or truck, then you will apply for and receive auto No-Fault insurance benefits to cover medical expenses and lost wages from your own insurance company. (MCL 500.3114(1))

No-Fault benefits when you do not have your own insurance

If you do not have your own auto insurance policy and you are injured in a car crash while driving someone else’s car or truck, then the insurance will follow the driver and you will receive No-Fault benefits through the auto insurer for your spouse or a relative who lives in your home or through the Michigan Assigned Claims Plan. (MCL 500.3114(1) and (4))

No-Fault benefits when you are in an Uber or Lyft or taxi

If you are injured as a passenger in an Uber, Lyft or taxi crash, then your No-Fault benefits will come from your insurer (if you have insurance) or through your spouse’s or relative’s insurer (if you don’t have insurance). (MCL 500.3114(2))

However, if No-Fault coverage is not available through any of those sources, then your No-Fault benefits will be paid by “the insurer of the motor vehicle” in which you are riding as a passenger. (MCL 500.3114(2)(e) and (g))

No-Fault benefits in your employer-provided car

If you are injured in a crash while driving a car or truck owned by your employer, then you will recover No-Fault benefits “from the insurer of the furnished vehicle.” (MCL 500.3114(3))

The same is true if you are injured in a crash while riding in a vehicle that was “furnished” to your spouse or a resident relative: The insurance will follow the car and you will recover No-Fault benefits “from the insurer” of the employer-furnished vehicle. 

Does liability insurance follow the car or the driver?

If you are driving someone else’s car or truck and you cause a crash that results in injury or death to someone else, then you will likely have liability coverage through your own auto insurance (if you have it) and through the policy that covers the car you are driving. 

The terms of both your policy and the policy covering the vehicle you are driving will determine whether your insurance or the insurance on the car is primary. The primary insurer has the duty to pay first before the secondary insurer’s duty to pay is triggered. 

To make sure that your legal rights are preserved, we advise drivers to file notices of claims with both their own insurers and the insurer for the vehicle they were driving.

Does uninsured and underinsured motorist coverage insurance follow the car or the driver?

If you are driving someone else’s car or truck and you are injured in a crash caused by an at-fault driver who is either uninsured or underinsured, then you will likely recover UM or UIM benefits from you insurer (assuming you have paid for the coverage) and through your insurer for the vehicle you were driving (assuming the owner of that vehicle paid for the coverage).

The terms of both your policy and the policy covering the vehicle you are driving will determine whether your UM/UIM coverage or the coverage on the car is primary. The primary insurer has the duty to pay first before the secondary insurer’s duty to pay is triggered.

To make sure that your legal rights are preserved, we advise that you file a notice of claim with both your own UM/UIM insurer and the insurer for the vehicle you were driving.

Does collision coverage insurance follow the car or the driver?

If you are driving someone else’s car or truck and you are involved in a crash that results in damage to the vehicle you are driving, then your collision insurance will follow the driver as the collision coverage on your own vehicle (if you purchased it) and/or the collision coverage on the vehicle you were driving (if it was purchased) will pay for the damage. 

The terms of both your policy and the policy covering the vehicle you are driving will determine which coverage is primary. The insurer whose policy is “primary” has the duty to pay first before the secondary insurer’s duty to pay is triggered.

Does mini tort coverage insurance follow the car or the driver?

If you are driving someone else’s car or truck and you are at-fault for causing up to $3,000 in property damage to another vehicle, your Mini-Tort coverage (which policies usually refer to as “Limited Property Damage Liability Coverage”) or the Mini-Tort coverage on the vehicle you are driving will pay – assuming that you and/or the vehicle you are driving have the coverage.

The terms of both your policy and the policy covering the vehicle you are driving will determine which coverage is primary. The insurer whose policy is “primary” has the duty to pay first before the secondary insurer’s duty to pay is triggered.

Does No-Fault Property Protection Insurance follow the car or the driver?

If you are driving someone else’s car or truck and “accidental damage to tangible property” results, then the Property Protection Insurance coverage on the vehicle you are driving will cover “physical injury to or destruction of the property and loss of use of the property so injured or destroyed.” (MCL 500.3121(1) and (3))

Injured in a car crash? Call the auto accident attorneys at Michigan Auto Law

If you were injured in a car crash in Michigan and have questions about your legal rights to pain and suffering compensation, economic damages and auto No-Fault insurance benefits, you can speak to an experienced auto accident lawyer at (800) 777-0028 for a free consultation. You can also get help from an experienced No-Fault insurance attorney by visiting our contact page or you can use the chat feature on our website.

Driving Someone\'s Car