Question:
If someone borrows my car and crashes it, does my insurance apply, or does theirs?

Answer:
Generally speaking, the liability follows the car, so your insurance would apply, as it is your car. The liability insurance of the driver often pays the additional amount if the costs payable are above your policy limits.

Question:
If a child goes to college with mom or dad’s car, are they covered under the parents’ personal auto policy?

Answer:
This can vary from company to company. Check with the insurance provider and make sure that the child is listed as an additional driver. Do this before the child goes to college, and it will avoid unnecessary disputes later on.

Question:
Do I need ‘gap’ insurance?

Answer:
If your vehicle is on finance, and its value is now less than the amount you owe, then yes you need gap insurance. If you owe less than its value, then no, you do not need gap insurance.