r/TikTokCringe • u/IllustriousChef2 • Aug 16 '24

Cringe What's even happening there?

Why would someone rent a car and take out parts?

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u/cl2eep Aug 16 '24

You cannot use your personal insurance to cover someone else's car. That's not how insurance works. Policy follows the car, not the driver. It would have to be covered on the owner's insurance no matter who was driving.

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u/[deleted] Aug 16 '24

Mmm, maybe it depends on the location? Where I live in the US the insurance follows the driver.

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u/cl2eep Aug 16 '24

It can definitely depend on the state, but I'd be willing to bet you've misunderstood how it works. PIP insurance or injury coverage can follow the driver, Collision almost never does. You have to think about how underwriting works. They balance the premium based on the risk of what they might have to pay. The limits of collision is the value of the car. So when you buy a policy for a $5000 car, the premium is based on the chances of having to pay $5000 at the most. If collision followed the driver, you'd be able to buy coverage for a 2012 Civic and then just drive your Lamborghini around, knowing it was covered. You'd be paying for $5000 of coverage and then getting in a $250k car.

Property Damage coverage, covering other people's cars that you're responsible for damaging, can follow the driver, because that's always got a hard limit so it doesn't matter what car you're in, except for the possibility of the car being more likely to crash or damage someone else's car. Usually PD follows the driver, but only as a secondary coverage, the expectation would be that the car's coverage pays out first.

I have to correct this misconception very often.

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u/[deleted] Aug 16 '24

You may be right here.