Does Insurance Follow the Car or Driver in California?

October 9, 2025 Posted In Car Accidents

In most cases, auto insurance in California follows the car, not the driver. That means the car owner’s insurance policy is the primary coverage when their vehicle is involved in a collision, regardless of who was driving at the time.

Exceptions to the Rule

While insurance typically follows the car, there are important exceptions to understand.

Unpermitted or Excluded Drivers

If someone drives your car without your permission—or is specifically excluded from your policy—your insurance may not apply. Many policies have “excluded driver” clauses that name individuals who are not covered.

Commercial or Rideshare Use

If the vehicle was being used for business, rideshare driving, or delivery purposes (such as DoorDash or Uber), your personal insurer may deny the claim. These situations often require separate commercial or rideshare policies.

Rental Vehicles

When renting a car, the rental company’s insurance or any optional coverage you purchase at the counter often becomes the primary policy.

Comprehensive and Collision Coverage

If your car is damaged while someone else is driving it, your comprehensive or collision coverage (if you have it) will pay for repairs regardless of fault. These coverages still follow the car, but you will be responsible for the deductible.

When the Driver’s Insurance Applies

The driver’s own insurance can come into play as secondary or “excess” coverage. This usually happens when:

• The damages exceed the vehicle owner’s policy limits
• The driver has their own auto insurance policy
• The driver is borrowing a vehicle that is not regularly available to them

For example, if you borrow your friend’s car and cause $60,000 in property damage, but your friend’s liability policy covers only $30,000, your personal insurance may pay the remaining balance—if you have sufficient coverage.

How Fault Affects Coverage in California

California is a fault-based state, meaning the person responsible for causing the accident is financially liable for resulting damages. The at-fault driver’s insurance—whether their own or the vehicle owner’s—must pay for injuries and property damage.

If both drivers share responsibility, California’s comparative negligence rule divides damages based on each person’s percentage of fault. For instance, if you are 25% to blame, you can still recover 75% of your total losses.

California’s Minimum Insurance Requirements

California law requires every registered vehicle to carry minimum liability insurance to cover damages caused by the driver. The current minimum limits under California Vehicle Code §16056 are:

• $15,000 for injury or death to one person
• $30,000 for injury or death to more than one person
• $5,000 for property damage

These limits are often referred to as 15/30/5 coverage. While this meets the legal minimum, it may not be enough to cover serious injuries or significant property damage after an accident.

Many drivers choose higher coverage limits or add optional protections such as:

• Uninsured/Underinsured Motorist Coverage (UM/UIM): Helps pay if the at-fault driver does not have insurance or has too little coverage.
• Medical Payments Coverage (MedPay): Covers medical expenses for you and your passengers regardless of fault.
• Comprehensive and Collision Coverage: Pays for your vehicle’s repair or replacement after accidents, theft, or damage from other causes like fire or vandalism.