How Does Auto Insurance Work In An Accident? 
It can depend on your State . If you are in a no fault State , each company takes care of its own insured . In most other States it works this way : Insurance first follows the driver and then the car . If I lend my car to my friend and he is in an at fault accident , his insurance pays first . My insurance is secondary . When you lend your car make sure the driver has insurance . Otherwise your insurance will pay for his accident but it will go against you and you could get a big rate increase or be canceled at renewal . If YOU are in an accident , always exchange insurance information , regardless of the severity . If there is any damage then you need to file an accident report with the police . If you are at fault your insurance company will pay for any liability or property damage to the other vehicle . Your insurance will help pay medical expenses for anyone in your vehicle under the Medical Pay portion up to your Medical Pay limit , usually between $ 1000 and $ 10,000 depending on your policy . Your Collision coverage would cover your vehicle . The reverse is true if the other driver is at fault . 