Does Each Driver Need Car Insurance or Just Each Car?

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Every driver needs car insurance, specifically liability coverage that will protect him financially in the event that he injures another person or damages another person's property in an accident. Usually, an insurer will issue a policy that covers the driver and the car that he owns and drives. However, policies can be altered to meet a number of different situations. For example, a policy may cover several drivers or several vehicles at the same time.

Normal Policy

Under a normal policy, an insurance company will issue a policy linked to a single car owned by a single driver. Depending on the terms of the policy, other drivers of the car may be covered as well. However, some policies will only provide coverage for the owner. The premiums paid for this policy will be determined using information both about the car linked to the policy and the driving record of the car's owner.

Multiple Cars

Insurance companies will also usually offer policies that cover multiple cars. A driver does not need to buy two separate policies for each of his cars. Rather, he can simply purchase a single policy that the insurance company will extend to both vehicles. This insurance policy will cost more than a policy for just one car, but the insurance company will likely offer a discount that makes it cheaper than two individual policies.

Joint Coverage

In addition to a policy that covers one owner driving multiple vehicles, an insurance policy can also cover multiple drivers driving the same vehicle. For example, if the owner of a vehicle wishes to allow his teenage son to drive the car, too, he can add the son onto his insurance policy as well. Usually, the added driver must be a family member. A policy like this could also cover multiple drivers on multiple vehicles.

Non-Owner Coverage

All insurance companies that issue car insurance are required to also offer non-owner insurance policies, too, according to laws in all 50 states. This is liability coverage that will protect a driver when he is driving cars that he does not own. For example, if a driver frequently drives rental cars, he may wish to buy non-owner coverage from an insurance company rather than pay for a new, short-term insurance policy each time he rents a car.

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