Car insurance can be confusing, here are a couple of the most common misperceptions when it comes to car insurance:
Commercial activities are not covered: In recent years rideshare driving and delivering food, groceries and other items have become a side hustle for many people. Unfortunately, many are unaware that most standard insurance policies exclude coverage if you are engaged in a commercial activity and are in an accident. While some insurers offer rideshare coverage, many do not. Always check your policy before engaging in a commercial activity with your vehicle.
When you lend your car, you lend your insurance: Car insurance follows the car, not the driver. So, if you lend your car to someone and they are in an accident, it will be your insurance (not theirs) that will pick up the tab to repair your vehicle. This also means it will be your premium that is headed up after the claim.