Car Insurance Rates and Company Cars

Car insurance coverage can be a fuzzy thing sometimes, particularly when it comes to driving a car that is not your own. What happens if you’re driving a car that belongs to someone else and you get into an accident? Will it make your car insurance rates go up? What if you get into an accident while driving a company car? Who is responsible for insuring it? If you get into an accident while driving a company car, will you get points on your license? Some of these questions can be answered in a general way, but nonetheless, be sure to consult with your car insurance provider directly in order to verify just what, exactly, your particular auto insurance policy will cover.

Uncovered Accidents

In most states, car insurance is for the car itself, so if you get into an accident driving another person’s car, their policy will cover you. You may or may not see your own car insurance rates go up, however, because if your driving is what caused the accident, then whether the car belongs to someone else or not could very easily not matter. This will be especially true if you’re driving under the influence of alcohol because insurance providers reserve all kinds of rights in such a situation. This will be true in practically all situations, whether you’re driving your own car or a company car. As a rule, drunk drivers almost always see their car insurance rates go way up after a DUI or an accident.

You should check with your human resources department to verify that the car has the proper coverage beforehand, of course, but if the car is registered in the company’s name then they’re responsible. If you get into an accident while driving a company car, and you’re responsible, you may see your own insurance rates go up. These rules all vary from state to state, so be sure to run the company car scenario past your car insurance broker.