Knowing who needs to be covered under a policy might be difficult when it comes to auto insurance. Do they require their own insurance if they are a named driver on your policy? There are a few things you should be aware of, but the short answer is no.
First, it’s critical to comprehend the distinction between liability insurance and complete coverage. Liability, comprehensive, and collision insurance are usually included with full coverage. While comprehensive insurance covers damage from events like theft or natural disasters, collision insurance only covers damage to your car after an accident. Liability insurance covers any harm you might inflict while driving on other people or their property.
Your specified driver will be protected by the same insurance as you if they are listed on your policy. But if they get into an accident while operating your car, the insurance claim will appear on your record rather than theirs. To protect themselves in the event of an accident, it may be a good idea for them to purchase liability insurance if they have their own vehicle and insurance policy.
If you run a garage or vehicle repair shop, garage liability insurance is another option to think about. This kind of insurance is made to shield your company from liability lawsuits that can result from mishaps or damage caused by the cars you’re responsible for. It’s crucial to understand that general liability insurance, which covers a wider range of liability claims, differs from garage liability insurance.
You must have insurance for all of your tools, equipment, and other possessions if you run a garage or auto repair shop. Commercial property insurance is a sort of coverage that can defend your company against damage from fire, theft, and other perils.
In conclusion, a named driver on your auto insurance policy does not require their own coverage, although liability insurance may be a good idea if they possess their own vehicle. Garage liability insurance, commercial property insurance, and maybe other types of coverage are necessary if you own a garage or vehicle repair shop, depending on the particulars of your industry.