Does Car Insurance Cover the Car or the Driver?

It’s so easy to get overwhelmed by all the insurance requirements and additions available for drivers in Dillon and Darlington. What type of coverage do you need? What does full car insurance cover? Is my child covered under car insurance? These are just a few of the questions we hear daily in the Nissan of Florence finance department. Our professionals are here to answer your questions and help you decide which kinds of coverage are best for you. 

What Does Full Car Insurance Cover? 

Let’s start with our first big question: does car insurance cover the car or the driver? That depends on what kind of insurance you have while driving in Sumter: 

Liability insurance is required by law. It covers the other driver if you’re at fault in an accident. In this case, it covers the other car, the other driver, and other people who were injured in the collision. In this case, your child is covered under car insurance. However, if your child has health insurance, that will likely be the first choice when paying for medical care related to a car accident. You can also use your liability coverage when you drive someone else’s car or a rental car. 

What does full car insurance cover?  If we’re discussing comprehensive car insurance, your car is covered for damage or losses that were caused by something other than a collision. Some potential events that comprehensive insurance can cover include theft, vandalism, hail and weather damage, or damage caused by hitting an animal. Collision coverage, which covers your vehicle in a collision, is often purchased with comprehensive coverage. While not required by law, some lenders will require proof of full car insurance before they approve a loan. 

When you buy a new car, for a time it’ll be likely that you’ll owe more on your loan than your car’s actual value. During this time it’s a good idea to carry gap insurance. If something should happen that totals your vehicle, gap insurance will cover the financial difference between what you owe on your loan and what you receive for your damaged car. 

These are the most common types of car insurance you’ll encounter. Does car insurance cover the car or driver? Ideally, both, but you have to make sure you have liability, comprehensive, and collision coverage to make sure all your bases are covered and no one involved is left in a dire financial situation because of a damaged vehicle. 

Learn More About Automotive Finance With Nissan of Florence

When you have important questions like if your child is covered under car insurance, the Nissan of Florence finance team is ready to answer! Our team is well-versed in the language of insurance coverage and can help you decide what you need. Want to learn more about insurance and auto financing? Check out our car-buying tips. You’re also welcome to contact us anytime!