Does Car Insurance Cover the Car or the Driver?

All drivers are required to carry some form of insurance, but many Los Alamos drivers end up confused and frustrated when trying to understand their insurance plans. This can bring up a series of important questions like:

• What type of coverage is needed?
• What does full car insurance cover?
• Is my child covered under car insurance?
• Does car insurance cover the car or the driver?

If you have questions about car insurance, you’re not alone. Contact us today to find answers to all of your car insurance questions and more!

Who Does Car Insurance Cover?

You may be wondering, “Does car insurance cover the car or the driver?” A number of factors, including the type of insurance you have, will determine the answer. Some insurance plans cover the driver and some cover the car. Things to consider when asking, “What does full car insurance cover,” include:

• The car on the policy will be covered by comprehensive, collision, or liability insurance. Occupants who aren’t on the specific policy (including children), may be covered by these plans as well. 
• Liability insurance may also cover the policyholder even when they’re driving someone else’s vehicle, like a rental car, dealership loaner vehicle, or a friend’s car. 

Some incidents or accidents that take place on the Taos streets may be covered by multiple insurance policies. When that occurs, one policy will be considered primary and will pay expenses up to its limit. Once the primary coverage has hit its financial limit, the secondary policy may cover excess costs. 

Comprehensive vs. Liability

So, what does full car insurance cover? Is my child covered under car insurance? In order to have complete coverage for you and your family, drivers must obtain several policies, including comprehensive, collision, and liability insurance. A combination of these policies will offer complete coverage. Understanding the difference between comprehensive and liability insurance is crucial in order to know how you’re protected on the Espanola streets. 

Learn More About Car Insurance in Santa Fe

Whether you’re looking to buy and protect a new or used vehicle, understanding your insurance coverage is critical. You can find answers to questions like, “Is my child covered under car insurance,” with Lexus of Santa Fe today! Our team will walk you through your coverage options or help you better understand your current plan.