California Insurance Follows The Car

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Post on Nov 11, 2024

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California's "Follow the Car" Insurance Rule: What You Need to Know

California drivers are known for their adventurous spirit, whether it's cruising down the Pacific Coast Highway or exploring the rugged mountains. But when it comes to car insurance, California has a unique rule that can be confusing: "Follow the Car". This article will break down everything you need to know about this rule, including its implications for your coverage and what to do if you're involved in an accident.

What is the "Follow the Car" Rule?

In California, car insurance follows the vehicle, not the driver. This means that the insurance coverage attached to a car stays with the car, regardless of who is driving. This is a significant departure from other states where insurance typically follows the individual driver.

How Does This Affect Me?

The "Follow the Car" rule has several implications for California drivers:

• If you lend your car to someone else and they get into an accident, your insurance policy will cover the damages. This means you'll be responsible for the deductible and any potential increases in your premium.
• If you borrow someone else's car and get into an accident, the owner's insurance policy will be responsible for covering the damages. However, your own insurance company may still be able to help if the other driver's coverage isn't enough.
• If you buy a used car, it comes with its existing insurance coverage. You can change your policy, but it's essential to be aware of the current coverage and adjust it to your needs.

Understanding Your Coverage

While the "Follow the Car" rule applies to your vehicle's insurance, it's crucial to understand your own insurance coverage. Here are some key points to remember:

• Your insurance policy still covers you as a driver. You still need to have your own liability insurance, which protects you in case you cause an accident while driving someone else's car.
• Your policy may also offer "non-owned auto coverage", which can help pay for damages if you're driving a rental car or borrowed vehicle and are involved in an accident.
• Always check with your insurance company to ensure your coverage aligns with the "Follow the Car" rule. They can clarify your specific policy details and provide guidance on any necessary adjustments.

What to Do After an Accident

If you're involved in an accident while driving a borrowed or leased vehicle, here's what you should do:

• Stay Calm and Safe: Prioritize your safety and the safety of others. Check for injuries and call emergency services if necessary.
• Exchange Information: Get the other driver's contact information, insurance details, and license plate number.
• Contact the Vehicle Owner: Inform the car's owner about the accident and follow their instructions.
• Report the Accident: File a claim with the vehicle owner's insurance company, as their policy will be responsible for covering the damages.
• Contact Your Insurance Company: Inform your insurance company about the accident and any potential claims. They can provide guidance and potentially assist with coverage if the other driver's insurance isn't enough.

Navigating the "Follow the Car" Rule

Understanding California's "Follow the Car" rule is essential for every driver in the state. By being aware of its implications and ensuring your insurance coverage is adequate, you can protect yourself and your finances in case of an accident.

Always remember to check with your insurance company to clarify your specific policy details and address any questions you may have.