Does Car Insurance Cover the Car or the Driver?

Many West Bloomfield drivers often find the insurance process frustrating and confusing and visit our Bloomfield Hills dealership with questions like:

• What type of coverage is needed?
• What does full car insurance cover? 
• Is my child covered under my car insurance?
• Is insurance expensive for my young child?

At Mercedes-Benz of Bloomfield Hills, we’re here to help with the car-buying process and answer your insurance-related questions.

Who Does Car Insurance Cover?

Does car insurance cover the car or the driver? This depends on a few things, like what type of insurance coverage you have. Some insurance coverage covers the car, and others will cover the driver. Let’s break things down:

• Comprehensive, collision, and liability insurance may cover the car and drivers who are not on the policy.
• Liability may cover the driver and provide coverage when the insured person is driving someone else’s vehicle, like a rental car, dealership rental car, or a friend’s car.

Liability is listed twice since insurance policies often cover the same situation, with one policy as the primary coverage. The policy pays until it hits its limit, then the secondary coverage handles the excess expenses. 

Comprehensive vs. Liability: What’s the Difference?

When it comes to full car insurance coverage, there is not a specific type of policy – it’s a combination coverage. Having comprehensive, collision, and liability insurance is like having full coverage insurance. What’s the difference between them?

Comprehensive and collision auto insurance covers the insured vehicle and the damages that happened to the insured vehicle due to vandalism or an accident. The liability insurance coverage covers the driver no matter whose vehicle is being driven, as long as it’s eligible. 

Learn More About Insurance Coverage at Mercedes-Benz of Bloomfield Hills

We know that auto coverage can get confusing, and that’s why our knowledgeable and friendly team will help alleviate that stress. Visit our dealership near Southfield for your next new or pre-owned vehicle, and we’ll make sure you get the details needed about insurance coverage, the car-buying process, or learning the difference between getting a lease vs. financing. Give us a call today!