Drive Other Car insurance is similar to an Individual Named Insured Endorsement. If you need to borrow, test drive, rent, or lease a vehicle, Drive Other Car insurance will extend the coverages you’ve purchased for your commercial auto insurance policy - like Liability insurance, Physical Damage insurance, Medical Payments, and Uninsured Motorist Insurance, to a non-owned car.
Cheap, sub-standard auto carriers write insurance for insureds with bad driving records. They are able to do this by setting their own limited conditions under which they will provide coverage. These sub-standard carriers do not cover claims that would be covered under a more standard policy. These policies can contain “named-driver exclusions” which limit coverage to persons specifically named in the policy. “Step-down” policies often lower liability coverage to a state’s minimum limits for permissive users, even if the insured pays for higher limits. Deductibles can be higher and/or a policy won’t extend coverage to a rental vehicle. Therefore, policy terms vary and directly affect whether a particular coverage follows the car or the driver.
While an “insured vehicle” may include a friend or neighbor’s vehicle or a rental car, if the vehicle was available for regular use, it might be excluded. A “replacement” vehicle will probably be covered, but in some cases only under circumstances where the insured’s vehicle cannot be operated for some specific reason, such as a repair. Coverage might not follow anyone if the insured is driving a vehicle other than a “private passenger vehicle not owned and listed on the insured’s policy.” There really is no such thing as a standard auto policy anymore and coverage for non-owned autos will be different under some policies and non-existent under others.
When the policy of the vehicle owner and the policy of the permissive user have different limits, the matter becomes even more complicated. If the damages caused by the permissive user’s negligence exceed the owner’s liability limits, the policy of the permissive user might be tapped as secondary coverage, but usually only where the permissive user’s liability limits are higher than the owner’s liability limits.
There isn’t a definitive answer to the question, “which company is the cheapest?” Some companies are cheaper than others, plain and simple, but individual details of your driving profile can affect which companies offer you the cheapest rates. For example, while Nationwide wasn’t the cheapest for a driver with a clean record, it was the relatively cheap for a driver following an at-fault accident. The best way to find cheap car insurance is to compare as many companies as possible using your driving profile.
Liability insurance coverage on a personal auto policy follows the driver no matter whose vehicle is being operated, provided it is an eligible vehicle. All states, except for one (New Hampshire), require at least liability coverage. Liability coverage protects the insured (i.e., follows the driver) when the insured operates a vehicle owned by someone else. In such a situation, they will still usually be covered under their own auto insurance policy. However, the best rule of thumb in looking for coverage under a policy is to begin with the exclusions.
A lot goes into an auto insurance rate quote, including your ZIP code, coverage levels, marital status, annual mileage, driving history and vehicle make, year and model. In most states, your gender and credit history are also used to determine rates. And again, the reason auto insurance comparison shopping is so important is because rates between companies are different for each person, too.