Most policies are “permissive” use policies so you would be covered. If you purchased a “named-driver” or “named-operator” policy, only drivers listed on the policy are covered.
There are a number of factors you should consider when purchasing any product or service, and insurance is no different. Here is a checklist of things you should consider when purchasing automobile insurance.
Insurance requirements relating to minimum coverage differ from state to state. Liability is the only insurance required by law in California. The limits required in California are often referred to as “15/30/5” coverage and include:
Is minimum coverage sufficient?
In determining your coverage limit, one of the most important factors to consider is the overall value of your assets. If, for example, you own a business or a home, you may want higher limits of liability coverage to protect those assets. Another consideration is to protect future earnings. While there is no set formula, you always want to secure coverage in proportion to your assets, so in case an accident did occur, you have sufficient coverage to cover the loss. If you are at fault and severely injure another person, you may be held personally liable for the bodily injury and physical damages beyond the scope of your liability coverage.
Additionally, if you lease or finance your car, it’s likely that your liability coverage limits may have to be higher, usually $250/500,000. You should check with the leaseholder to determine the appropriate level of your coverage. For our customers who own businesses we recommend a minimum of $1,000,000 in auto liability coverage. Most auto policies do not offer a liability limit this high so a personal umbrella may be needed.
Our main rule of thumb is to buy as much liability insurance as you can afford. PIA customer support agents are licensed, non-commissioned insurance professionals and can provide advice regarding general coverage limits.
If you are involved in an accident, liability coverage covers the costs related to the injuries and property of the other parties involved in the accident, up to the limits of your policy. This does not include your own medical expenses or the expenses of any of your passengers.