Insured vehicle

An insured vehicle is any car, truck or other ride listed on an active auto insurance policy. It's covered under the protections you’ve chosen, like liability, collision or comprehensive and is usually identified by its make, model, year and vehicle identification number (VIN).

When a vehicle is insured, your insurance company agrees to help pay for certain losses or damages if something goes wrong. That could mean an accident, theft or even storm damage depending on the coverage you selected.

Who is covered under an insured vehicle?

Wondering who’s actually protected when your car is insured? It’s a common question, especially if you share driving duties. Whether you're handing over the keys for a quick errand or sharing a car with family, it's important to know who’s covered under your policy.

Auto insurance generally covers:

• The policyholder – The person who bought the policy is, of course, covered.
• Spouses or household members – If they’re listed on the policy, these people are also covered.
• Permissive drivers – People you allow to drive your car occasionally may be covered, but it depends on the policy.

If you’re not sure who’s covered, say a roommate or a friend who borrows your car often, ask your VIU by HUB Advisor to clarify. It’s better to double-check than be surprised later.

Do I need to insure my vehicle?

In almost every state, yes. If you own or lease a vehicle and plan to drive it, auto insurance is required by law. With the exception of New Hampshire, all U.S. states require at least some form of liability insurance to cover injuries or property damage you may cause in an accident.

If you’re financing or leasing a car, your lender will likely require full coverage which usually includes both collision and comprehensive protection. These coverages protect the lender’s investment while you’re paying off the vehicle.

And don’t forget about uninsured motorist coverage. It’s not always mandatory but it can be a financial lifesaver if you’re hit by someone without enough insurance.

What types of vehicles can be insured?

From your everyday commuter to your weekend cruiser, insurance is available for all kinds of vehicles. Coverage can be tailored to suit how and when you use your vehicle. It's all about making sure your ride is protected wherever the road takes you.

• Personal-use cars and trucks
• Leased or financed vehicles
• Classic or collector cars (with specialty policies)
• Motorcycles and scooters
• RVs or trailers
• Business-use vehicles (usually need commercial auto insurance)

If you use your car for work, like delivering food or rideshare driving, you may need special coverage. A VIU by HUB Advisor can help you figure out which policy fits your vehicle and how you use it.

What’s the difference between an insured and uninsured vehicle?

The difference is simple but serious: an insured vehicle has active coverage. An uninsured one does not.

Driving without insurance can lead to fines, license suspension or worse. You may have to pay out of pocket for someone else’s injuries or repairs. Some drivers are also underinsured, meaning they have a policy but not enough coverage to handle a major accident.

Being fully protected means carrying enough insurance to avoid big bills after a crash.

What does insurance cover for the insured vehicle?

Coverage depends on your specific policy, and no two plans are exactly alike. That said, most policies include a few common protections that help cover a wide range of risks. Here are the most common protections:

• Liability coverage – This pays for damage or injuries you cause to other people or their property.
• Collision coverage – This covers repairs to your car after an accident, regardless of who was at fault.
• Comprehensive coverage – This handles non-collision events like theft, fire, weather or vandalism.
• Uninsured/underinsured motorist coverage – This helps cover costs if you’re hit by a driver with little or no insurance.
• Medical payments or personal injury protection (PIP) – This pays for medical care after an accident, regardless of who was at fault. In some states, it's required coverage.

You can mix and match coverage types based on your needs. Your driving record and policy choices both affect your rate. A clean history may even earn you a discount.

Factors affecting insurance rates

Ever wonder why your neighbor pays less for the same car? It might not be personal, it’s all about how insurance companies assess risk. Insurance rates depend on a mix of factors including:

• Driving record – Your history of tickets and accidents can raise your rate.
• Vehicle type – Cars that are expensive or high-performance often cost more to insure.
• Location – If you live in a busy city or an area with high theft rates, you might pay more.
• Age and experience – Younger or newer drivers typically pay higher premiums.

Every insurance company calculates rates differently so it pays to shop around. And keeping a clean record is one of the best ways to save.

How is the insured vehicle listed in an insurance policy?

Every insured vehicle appears on the declarations page of your auto policy, which is the section that outlines key details of your coverage. This page helps you confirm exactly which vehicles are protected and under what terms. It usually includes:

• Year, make and model
• VIN (vehicle identification number)
• Assigned drivers
• Coverage types and limits

If you insure multiple vehicles, each one will have its own listing and can have different coverages.

What happens if I sell or replace my insured vehicle?

Selling or trading in your vehicle? Your coverage on that car typically ends when ownership changes. It's a good idea to notify your insurance provider as soon as possible to avoid gaps in protection or billing confusion.

If you’re buying a new or used car, be sure to:

• Contact your VIU by HUB Advisor right away
• Check if your policy includes a grace period (usually 7 to 30 days)
• Share the new vehicle's VIN, mileage and purchase date

If you’re financing the car, consider gap insurance. It covers the difference between what you owe and what the car is worth if it’s totaled.

Does car insurance follow the car or the driver?

In most cases, insurance follows the car. So if someone drives your insured vehicle with permission, your policy usually provides the primary coverage. This means the vehicle itself is insured, no matter who is behind the wheel, as long as they meet your insurance company’s requirements.

Likewise, if you borrow a friend’s car with their okay, their policy is generally the first to respond in a claim. 

To avoid surprises, check with your advisor before letting someone borrow your car or before you drive someone else’s.

Customizing insurance coverage

The best part about car insurance? You can make it your own. It’s flexible, easy to adjust and designed to grow with your needs.

From basic liability to full protection, your policy can be adjusted to suit your lifestyle and budget. Adding or removing coverages over time helps you avoid overpaying while staying protected.

Not sure what you need? A VIU by HUB Advisor can help you build a plan that works for today and tomorrow.

Insured vehicle FAQs

Can I drive someone else’s car and be covered? 

Sometimes. If the owner’s insurance policy includes permissive use and you have their permission, you may be covered. But don’t assume. Always double-check their policy or have them call their insurance company.

Is my car covered if it’s in the shop or being towed? 

Yes, as long as it’s listed on your policy and the damage happens under covered circumstances. This includes situations like towing accidents or damage while your car is at a repair shop. Always check your specific policy details to understand exactly what's included.

What if I forget to add my new car to my policy? 

Most policies offer a short grace period, often 7 to 30 days. Still, it’s best to contact your advisor right away to avoid any lapse in coverage.