Is auto insurance per car or per person??

Auto insurance is primarily per car. You can add additional cars to your policy. The national average rate of auto insurance is around $129/mo.

secured lock Secured with SHA-256 Encryption

By clicking, you agree to our Terms of Use

Nationwide State Farm Allstate
AllstateState FarmNationwideLiberty MutualFarmers Insurance
Laura D. Adams

Insurance & Finance Analyst

Laura Adams is one of the nation’s leading finance, insurance, and small business authorities. As an award-winning author, spokesperson, and host of the top-rated Money Girl podcast since 2008, millions of readers and listeners benefit from her practical advice. Her mission is to empower consumers to live healthy and rich lives by planning for the future and making smart money decisions. She rec...

Written by
Laura D. Adams
Scott W. Johnson

Licensed Insurance Agent

Scott W Johnson is an independent insurance agent in California. Principal Broker and founder of Marindependent Insurance Services, Scott brings over 25 years of experience to his clients. His Five President’s Council awards prove he uses all he learned at Avocet, Sprint Nextel, and Farmers Insurance to the benefit of his clients. Scott quickly grasped the unique insurance requirements of his...

Reviewed by
Scott W. Johnson

Updated December 2024

Car insurance is generally designed for the individual vehicle, but there are a lot of different factors that go into your car insurance premiums, including:

  • how many cars you own
  • your driving history
  • the driving histories of any additional drivers you wish to add to your policy

is auto insurance per car or per person

If you’ve recently purchased a new car and/or sold your old car, you can get quick quotes with the help of our car insurance comparison tool. Just enter your zip code above.

Things to remember...

  • Car insurance is primarily per car
  • You can add additional cars to your car insurance policy
  • There are discounts available for drivers that own more than one vehicle
  • If you need a new car insurance policy for your vehicles, you can use a comparison tool to quickly find coverage

Cars and Insurance

When it comes to car insurance, the make, model, year, modifications and crash, safety and theft records are all taken into consideration by the insurance carrier.

For this reason, car insurance policies are written for specific cars.

If you buy an additional car, it can be added to your policy, but the rates for that car will be calculated, according to the additional car’s specifications.

  • Car Value – Your car’s overall value will factor into your car insurance rates. In general, cars that cost more increase insurance rates because they cost more to repair or replace after a car accident.
  • Modifications – If you perform modifications to your car, like custom paint, increasing the horsepower and making expensive stylistic changes to the body, your insurance carrier may increase the value of your car, which will increase your car insurance rates.
  • Crash and Safety Records – If the car you own or a car you are thinking about purchasing has less than stellar crash test ratings, you can expect to pay more for your car insurance because cars with poor test ratings result in more injuries and more damage to the vehicle.
  • Theft Records – Certain cars are stolen more often than others. If your car has a high theft record, you could pay more for car insurance.

Free Insurance Comparison

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

By clicking, you agree to our Terms of Use

Nationwide State Farm Allstate

Other Factors that Affect Car Insurance Rates

While the type of car you drive and its history is the starting point for insurance policies, it is not the only factor.

Here are some other factors considered:

  • your driving history
  • your credit score
  • past claims, age
  • your marital status
  • the location of your car

Car insurance calculated per car or per person also takes into account whether you plan to add drivers to your policy. Their driving histories and records will influence your premiums. It is mandatory to pay for car insurance, whether it depends on the car or the person.

Adding a Car to Your Insurance Policy

If you purchase a new or new-to-you vehicle, you will need to add it to your insurance policy because the new car may have different determining factors for your insurance premium, and you may not be covered if you drive that car without adding it to your policy.

The good news is that if you purchase an additional vehicle and your insurance company is closed or unavailable, many policies will still cover the new car for a few days. This gives you time to contact your insurer and add the vehicle. The average car insurance cost for one individual varies, but having car insurance for both the car and the individual ensures coverage. Whether you need car insurance for a single driver or multiple drivers, it’s important to update your policy promptly.

When you add a vehicle to your existing insurance policy, you might qualify for a multi-car discount, which can reduce your insurance costs.

Car insurance for an individual driver can benefit from this, as the car insurance rates determined by the policy may be lower. It’s important to remember that you need to pay for car insurance to maintain coverage.

Car Insurance and Renting a Vehicle

While car insurance is designed primarily for the specific car, you may be able to rent a car without purchasing additional rental car coverage.

For many drivers, the same coverage they carry on their daily car transfers to any rental car they may need.

To find out if your current policy includes coverage for rental cars, it’s advisable to contact your insurance company directly. If you need a policy where the driver is insured under the policy and covers rental cars, you can begin by using a car insurance comparison tool. This tool can help you determine whether the insurance coverage is based on the car or the driver and ensure you have appropriate car insurance per vehicle.

Free Insurance Comparison

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

By clicking, you agree to our Terms of Use

Nationwide State Farm Allstate

Purchasing a Car Insurance Policy You Can Afford

If you are having trouble finding a car insurance policy that you can afford, you can use the services of an auto insurance comparison tool.

These tools allow you to put in all the information for every vehicle you own as well as the information for yourself and any additional drivers.

After you input all the necessary details, the tool will scan for available policies in your area that fit your criteria. You can then review the options to see if the premiums align with your budget. This process helps in comparing family car insurance versus individual insurance policies and understanding whether car insurance is based on the vehicle or the individual. You’ll also find options for car insurance tailored for one person.

When you find a policy that meets all of your needs, you can generally purchase the policy directly online and print out the policy’s information. Once the policy is active, you and all your vehicles and drivers are covered.

Compare car insurance quotes today by entering your zip code below.

Frequently Asked Questions

Is auto insurance coverage determined on a per-car basis or a per-person basis?

Auto insurance coverage is mainly determined on a per-vehicle basis rather than per person. When you obtain auto insurance, you are insuring the specific vehicle and the associated liabilities from its use. The details and terms of coverage can differ based on the insurance provider and the chosen policy. Essentially, insurance is determined per vehicle or per person, with insurance per automobile catering to the vehicle itself and insurance for individual drivers covering their driving needs.

Are there any situations where auto insurance coverage extends to the driver or passengers?

While auto insurance is primarily focused on the vehicle, there are situations where coverage can extend to the driver or passengers, depending on the policy and jurisdiction. For example, some auto insurance policies may include personal injury protection (PIP) or medical payment coverage, which can help cover medical expenses for the driver and passengers involved in an accident, regardless of fault.

Can multiple drivers be covered under a single auto insurance policy?

Yes, multiple drivers can typically be covered under a single auto insurance policy. When insuring a vehicle, you may have the option to list multiple drivers who have permission to drive the insured vehicle. However, it’s important to note that the insurance premium may be influenced by factors such as the drivers’ ages, driving records, and other relevant details.

Are there any restrictions on who can drive an insured vehicle?

The specific restrictions on who can drive an insured vehicle can vary depending on the insurance policy and the terms set by the insurance provider. Generally, the policyholder and any listed drivers with permission are covered. However, policies may have exclusions for unlicensed drivers or individuals specifically excluded from coverage.

How can I find a car insurance policy that I can afford?

If you’re having trouble finding an affordable car insurance policy, you can use an auto insurance comparison tool. These tools allow you to enter your vehicle and driver information, and they will search for available policies that meet your criteria. Once you find a suitable policy, you can generally purchase it online and print out the policy’s information.

How many cars can be insured by one person?

There is no specific limit to the number of cars one person can insure. You can insure as many cars as you own, but each vehicle will need to be listed on your policy and will be subject to its own premium.

Does insurance follow the car or the driver in Florida?

In Florida, insurance typically follows the car. This means that if someone else is driving your car and gets into an accident, your insurance policy would generally be responsible for covering the damages.

Does insurance follow the car or the driver in Ohio?

In Ohio, insurance primarily follows the car. If someone else is driving your vehicle with your permission, your insurance policy is usually the first to cover any damages or liability.

Does insurance follow the car or the driver in Virginia?

In Virginia, insurance follows the car. This means that if someone else drives your car and is involved in an accident, your insurance policy will typically cover the damages.

What is the best insurance for multiple cars?

The best insurance for multiple cars often includes a multi-car discount. Companies like State Farm, GEICO, and Progressive offer competitive rates and discounts for insuring multiple vehicles under one policy.

More FAQs

Get a FREE Quote in Minutes

Insurance rates change constantly — we help you stay ahead by making it easy to compare top options and save.

secured lock Secured with SHA-256 Encryption

By clicking, you agree to our Terms of Use

Nationwide State Farm Allstate
Liberty MutualFarmers InsuranceAllstateNationwide