It can be confusing when trying to determine which car insurance company would pay a claim. If you are driving a friend's car, does your friend's insurance pay or does your own insurance pay? Do they both pay? What about if you are pedestrian?

The simple answer is that insurance follows the motor vehicle you are in when the accident occurs. If you are driving a friend's vehicle and cause an accident, your friend's insurance policy is primary. This means that their insurance company pays first. Your personal insurance policy on your own car is secondary. This means that it pays if your friend's policy is paid out in full. For example, if your friend has a $30,000 policy and it is tendered, your personal insurance would then provide coverage for the claim up to your policy limit.

If you are driving or are a passenger in another motor vehicle and are injured, you can make a PIP ("Personal Injury Protection" claim against that motor's vehicle insurance company so long as you did not waive coverage on your personal vehicle policy. However, if you have greater PIP limits on your own personal policy, you can also make a claim for the difference in PIP between the two policies so long as the first policy is paid out.

Pedestrians make PIP claims first against the vehicle that struck them. They may have additional PIP coverage on their personal vehicle.

If you have been struck by two vehicles who are both at fault, they are jointly and severally liable for your injuries. This means that both insurance companies can pay your claim and you can collect up to the policy limits of each of them depending on the value of your case.

It can be confusing which insurance company has to pay your claim. If you have any questions, reach out to us.