When you buy or lease a car, the vehicle begins to depreciate in value as soon as you drive it off the lot. According to Gabi, customers save an average of $961 per year by switching insurance policies through its platform. There are also a range of specialist providers who offer cover, so if you want to shop around and compare prices, you’ll need to visit them separately. You’ll then be given a quote for 3 different types of policies on offer.
We will work with the insurance provider to cancel your insurance policy and issue a refund. Depending on your needs at the time you purchased your car, you may not have needed to purchase GAP insurance. For example, it would depend on what your motor vehicle insurance covered you for. If the payout from your insurer is less than the financed amount owing, this creates a gap or shortfall.
To compare, you could fill out an online form at LendingTree and get up to five potential auto loan offers from lenders based on your creditworthiness. Other potential lenders include your bank, credit union and online lender. Auto GAP pays what your auto insurance doesn’t, up to a limit, but it’s not a replacement for your primary car insurance is life insurance taxable coverage. As long as your gap insurance policy covers loss in the case of theft, your stolen vehicle will be eligible for coverage under your gap insurance. When you purchase gap insurance, you are really only trying to cover the gap between the fair market value of your car and the remaining amount left to pay on your car loan.
Customers that may have had an account or service opened without their consent or without being fully informed of the details of the account or service may be eligible for remediation. Additional details regarding the remediation that Wells Fargo has provided in the past or is in the process of providing is outlined below. Unfortunately we can only provide policies for vehicles purchased from dealerships or motor traders. We can only offer policies on vehicles purchased within the last 60. A claims management service is designed to provide information to consumers who want to have a claim managed on their behalf.
There are several situations you should consider gap insurance. The first is if you made less than a 20% down payment on a vehicle. If you make less than a 20% down payment, it is likely that you do not have cash reserves to cover them in case of an emergency and that they will be “upside down” on the car payments.
The two major differences between these two coverages are that GAP insurance is tied to a loan, and it can be utilized for used vehicles too. According to Edmunds.com, the average new car depreciates 11 percent as soon as it leaves the dealer’s lot. If you’re looking for new cars, a Certified Pre-Owned car might help you buy a like-new car at a significant discount vs. MSRP.
In the event of an accident, that amount will go toward paying off all of the costs associated with the accident, including the other car, other structures that were damaged and your own vehicle. If there life insurance companies is an amount remaining, that will become your personal responsibility to pay out. If you have a GAP insurance policy in place, it will pick up the remainder to prevent it from coming out of your pocket.
Easy Payment Options
There are other places to purchase gap insurance for much less money. You see, car dealerships profit like bandits off gap insurance. Because gap insurance is not regulated, the commissions have no limits. That’s money you’re putting right into their pocket just for the privilege of letting them sell a gap policy to you.
“You only buy it once at the dealership — it’s not an annual renewal,” says Miller. This type of insurance coverage pays the difference between your vehicle’s cash value and the amount you still owe in car payments in the event of a total loss claim . If you buy gap insurance from the dealership, it can cost hundreds of dollars a year.
Western Union or MoneyGram will charge you a convenience fee for these services. When using these “cash only” locations, please reference your billing statement to ensure you have the correct account number and codes. With the uninsured motorist option, USAA will compensate you when the third-party that caused the damage is unable to pay for it.
Gap protection is meant for situations when you owe more than the car is worth. If you buy a used car, you likely wouldn’t find yourself in this situation unless you financed it. Considering many used vehicles hold their value and typically have short loan terms, it may not be worth it. When you are looking to upgrade your vehicle, or buying your first one, you may have been asked if you want to include gap protection.
You can also check with your insurer to see if they offer gap coverage as an add-on for your policy. It may be worth your while to switch car insurance companies to bundle car insurance with gap insurance. If you’re leasing your car or using an auto loan to purchase it, you may have to get gap insurance.
Gap Insurance For Your Health Deductible
It’s unlikely that this’ll be enough to buy a newer equivalent model, leaving you to fork out for the £10,000 shortfall or settle for an older car. Sure, comprehensive and collision insurance will pay for physical damage to your vehicle, but that doesn’t mean that it will pay as much as you need it to. One of your requirements, when you finance a car, is to carry full coverage auto insurance. It’s required so that the collateral on the loan is protected. This holds true even if you are no longer eligible for a gap insurance payout, so it is important to be proactive in canceling your gap insurance coverage. Gap insurance can be purchased from either a car insurance provider or a car dealership, here’s how to cancel both.
Typically, you should get a full refund on your GAP insurance if you cancel the contract within 30 days of purchasing the policy, though cancelation fees may apply. For example, if you paid $900 for a 36-month coverage, then the monthly amount is $25. If you decide that you no longer need GAP insurance after 22 months, you can request a refund for the remaining 14 months of coverage.
Over time, you may find out that you have what’s called an upside-down loan on your car. An upside-down loan is when you owe more money than what your car is worth. Ask your assigned adjuster about your state’s rules for total loss vehicles. We’ll adjust your settlement amount if you decide to keep your totaled car. The settlement also covered customers who enrolled in certain identity theft protection services during that period (details are available online at WFSettlement.com). Gap insurance covers what your commercial auto insurance doesn’t.
The buyer may be underwater for only a couple of years before the monthly payments on the loan principal catch up to the depreciation on a vehicle that holds its value well. Conversely, they could be underwater longer on a vehicle that loses value quickly. Appraisal gap coverage is a great way for buyers to stand out, and it doubles as a safeguard from potentially overpaying for a property. Either way, it will help increase the likelihood of an offer being accepted and should always be considered when making a real estate purchase. For example, let’s say a couple is considering buying a two-bedroom condo in downtown Denver, Colorado, listed for $385,000 with offers pouring in from all sides.
We’ll also take a look at Florida GAP insurance companies, where you can purchase GAP insurance, and more, so keep reading. If you drive a 10-year-old economy sedan that is mostly paid off, you do not need this coverage. You also do not not GAP coverage if you own your vehicle outright.
You do not get your full GAP coverage refunded back to you once you pay off your car. When you pay your GAP insurance premium in advance, you are entitled to a refund of the unused portion if you pay off your vehicle early. If you pay your GAP coverage in monthly installments, you are not entitled to a refund of any used premiums. You may receive a small refund if you cancel early in the month. Any claim where you have declined an offer to repair your vehicle and asked for the claim to be dealt with as a total loss. Any vehicle not insured by a comprehensive motor insurance policy.
Auto insurance is needed just to keep your driver’s license. Home insurance is needed for protection against financial ruin. Of course, there is also a fair amount of overlap between auto and home insurance. Lending institutions, for example, usually require additional insurance coverage to protect their own financial interests.
People who don’t make significant down payments on their vehicles can have car payments that exceed the vehicle’s value. Gap insurance works by bridging the gap between your insurance settlement and the remaining amount of your loan balance. Finance companies or banks typically ask individuals to get full coverage for their vehicles under their loan terms. When you are in an accident that is not your fault, the liability insurance of the other driver covers the worth of your car. Please note that your vehicle is not officially a total loss until your adjuster confirms it after inspection. If your bank sells or offers credit life or debt cancellation coverage, notify all lending staff involved in those products about the new disclosure provisions.
Some lease agreements include gap insurance coverage, so be sure that you’re clear on what is in your lease to avoid doubling up on insurance coverage. In addition, some lenders may require you to get gap insurance, especially if you’re financing a car that loses value quicker than your average car. These types of cars tend to be SUVs, luxury sedans or sports utility vehicles. Although basic auto insurance can help you protect your investment, it can’t always cover all of your costs. For example, your car may have depreciated over the past year, resulting in a current value of $20,000.
Your best bet is to call your auto insurance company and ask whether you can add it to your existing policy. Your insurer should be able to tell you what your options are and how much adding gap coverage may cost. Be sure to compare the best car insurance rates to find the right option. Whether you need car gap insurance can depend on the type of vehicle you purchase or lease. It may be if you believe you may owe more money on a vehicle than your comprehensive auto insurance policy would pay out if you were to file a claim.
What Is Not Covered In The Usaa Gap Insurance Policy?
You could pay for GAP coverage and not worry about it—or you could assume it’s unlikely you’ll get into a traffic accident that soon. However, if you can get GAP at a reasonable price, it may be worth it purely for the peace of mind. If your car is totaled, your car insurance plan will typically pay replacement value.
The insurance company sends out an adjuster who declares your vehicle a total loss (meaning the cost to repair is greater than the vehicle’s value). The insurance company sends you a check for $24,000 as this is the actual cash value of the car at the time of loss. Unfortunately, the financing company tells you that you owe $26,000, leaving you $2000 short, plus any deductible.
Finance Gap Insurance
You do not have significant cash savings that would allow you to cover the difference between the amount you owe on your loan and the actual cash value if your car is stolen or totaled. If your car is stolen or totaled in an accident, you can make a claim on collision or comprehensive insurance . A health insurance deductible is the amount that you have to pay out-of-pocket before your insurance plan will cover costs.
I have a car loan with Ally and wanted to know if somebody vandalized as my vehicle and it becomes a total loss do I still have to pay the car loan payments or does Ally automatically include gap. I had a SUV a while back and someone vandalized it I had gap with that vehicle loan. I live in a complex with more than 90 apartments and there’s people who don’t like some people and are very childish and immature and they like to ruin and destroy peoples things. If you get into an accident and your car can’t be repaired, the money you get from the insurance company may not cover what you still owe on your car loan. For example, if your insurance company decides the replacement value of your car is $10,000 but you still owe $16,000 on your loan, you will need to cover the $6,000.
This is true only when lenders mandate it as a condition of financing or leasing a vehicle. If your new car is totaled six months after you bought or leased it, the lender doesn’t want to be responsible for the difference between the insurance payout and the loan or lease balance. In regard to the inquirers second question, the Insurance Law limits the amount that may be charged by the lessor, creditor or assignee for the gap waiver.
- Read on to see how it works in more detail and to learn which insurance companies offer affordable gap coverage.
- As a result, the payment you receive from your insurer may be less than what you owe on your auto loan.
- GAP insurance is able to be added to your auto insurance coverage policy and included in your insurance coverage premiums It can also be bought as a separate policy from a GAP insurance company via lenders.
- This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement.
- Make sure when shopping for an affordable health insurance plan you are protected from high deductibles in the event of a medical emergency.
Between November 2017 and July 2018, Wells Fargo reached out to all home lending customers who paid rate lock extension fees for extensions requested between September 16, 2013 and February 28, 2017. Eligible customers are not required to take any action to receive this remediation and should be receiving notices and remediation automatically. The first remediation payments were mailed in December 2018 and additional mailings are ongoing.
Dealerships like gap insurance because compared with other aftermarket products they offer, it’s is relatively inexpensive, making it an easy sale. While extended warranties can run several thousand dollars, gap insurance is usually sells for $350 to $800. Prices vary depending on the length and amount of the car loan. Insurance plan networks vary considerably from one health insurance policy to another. Add up how much you will pay in gap coverage until you pay off your loan, and determine whether it’s less than you would have to pay out of pocket to cover your car loan if you didn’t have gap coverage. In contrast, gap insurance would provide the $6,000 you need to close your debt in good standing.
A private or civil wrong or injury, other than breach of contract, which violates a person’s legally protected right, and for which the law may permit a remedy in the form of money damages. Claims for injury or damage to property of a third party alleged to have been caused by the insured. Used to cover damage not included in the original estimate. Legally binding contract stating that all obligations past, present or future arising from a particular accident or occurrence have been fulfilled.
Gap insurance supplements your main auto insurance policy and covers the difference between what your car is worth and what you still owe. Gap insurance covers the difference between the amount you owe on your car loan and the amount your auto insurance company will pay out if you total the car. Car dealers and lenders often offer gap insurance for $500 to $700, and you’ll pay interest on that amount if it’s rolled into the loan. For example, let’s say you buy a brand-new car for $35,000.
If you are going to get your GAP insurance “rolled into” your RV’s loan, you should expect it to add anywhere from $2 to $20 per month onto your monthly premium. Before you decide to sign on the dotted line regarding your RV’s GAP insurance, it’s best to read what are the limits of the policy you’re about to buy. Interest can quickly add thousands of dollars onto the total amount you’ll pay over the course of several years. It can be wild when you realize how much underwater you can be. Like with any other type of major purchase financing, there’s going to be interest involved. They also offer full-time motorhome insurance and storage insurance, making them a great go-to for veterans of the RV lifestyle.
For more information, you can contact one of our licensed Gabi advisors. For only a few dollars a month, you can protect yourself and your bank account with gap coverage. And to most of us, that peace of mind is well worth the money. Just like auto insurance, GAP insurance will only pay for perils included in the policy—and these perils can change from policy to policy.
You will get a much better deal than if you purchase a policy from a dealership. Contact an independent agent today to make sure you purchase the right gap auto coverage policy. Yet, to purchase the best policy and get the most benefit, you should always talk to an independent insurance agent to help you decide whether gap insurance is worthwhile, based on your circumstances.
With just a few clicks you can access the GEICO Insurance Agency partner your boat insurance policy is with to find your policy service options and contact information. This is a good time to review procedures for disclosing credit life insurance as well as providing instructions on GAP and debt cancellation coverage. This may include a refund of duplicative CPI interest and/or CPI premium charges, to the extent not previously refunded. It may also include a refund of fees assessed to the customer’s account during the time when duplicative CPI may have caused the fee to be assessed, among other potential compensation. Eligible customers should receive this remediation automatically and are not required to take any action. The accounts and services included in the review were Wells Fargo consumer or small business checking or savings accounts, credit cards, unsecured lines of credit, and online bill pay services.
Actual Cash Value is an industry term that’s used all over your declarations page and your personal auto policy contract to define how much the insurer will pay. Just because you’re only required to buy full coverage doesn’t mean that you don’t have to worry about a loss. When you owe more on the car than it’s worth, you could get stuck paying thousands for a car you can’t drive. What many people don’t understand is how much their policy will pay when they have a total loss.
This policy type insures against liabilities arising from damages to other people’s vehicles only if you hit them from behind. One classic example of this is illustrated in First American Title Insurance Company v. Dahlmann, 2006 WI 65. The survey and encroachment exceptions had been removed from the policy when Dahlmann purchased the Madison Inn in January 1999. To read more about this case, see pages 9-10 of the March 2007 Legal Update at /LU0703. If your car is totaled after colliding with a vehicle, tree, guardrail, or any other object, collision coverage pays for the value of the damaged vehicle, regardless of fault and minus any deductible.
You can’t purchase GAP Insurance Coverage without buying New Car Replacement Insurance. Gap insurance is available if there is a leaseholder or lienholder on the vehicle. A lessor or lienholder can only be a financial institution; it cannot be a private individual. Whichever product you choose, make sure it covers you for all types of loss, including natural disaster, theft, and accident. We have several payment options to choose from, all designed to offer you the most convenience. A simple and straightforward guide to vehicle financing, which includes helpful tips, the differences between buying and leasing, and key terms that may come up during the vehicle financing process.
How much GAP insurance will cost will vary depending on the provider you’ve chosen. It could range from under $10 monthly payment to under $50 for the year. So, it will be important to research the providers and shop around. The dealership could be charging something expensive, and you could get a cheaper rate if you just added it to your existing auto insurance policy. We encourage every customer who is financing a vehicle to consider purchasing GAP insurance.
Let’s say your car is totaled and you get $5,000 from your insurer. If you then buy a car that’s worth $30,000, your auto insurance company will pay the sales tax on the older vehicle. When it comes time for you to purchase a new car, depreciation is a serious concern. During the first five years, the car depreciates by 15% to 25% each year, and after just five years, the car is only worth 37% of what you paid for it at the dealership. The insurance covers the difference between the value of the car and the amount you still owe on the vehicle.
With lease GAP insurance, you won’t need to worry about it. Finance GAP insurance – if you’ve taken out car finance to buy your car on a contract hire basis, this will cover the amount you still owe the finance company, if your car was to be written off. This means you shouldn’t need to continue making your monthly repayments on your outstanding finance agreement. This is the most standard and common type of GAP insurance. Gap Insurance can offer an essential layer of protection in a number of situations, but understanding the details of your policy is essential to getting the coverage you need. For instance, these policies are intended to provide restitution for major damage or total losses, so mechanical failures such as engine trouble are usually outside the scope of Gap Insurance.
The money wouldn’t come directly to you because your car is financed. Or the check would be made out to you and your lender for you to sign and send to your bank. To those longer loans, add how quickly a car depreciates and you see why consumers may owe more on their car loans than what the vehicle is actually worth. Experian Automotive said more than 86% of new car buyers take out a loan. The average new car loan is about $30,000 for an average of 68 months. Totaling your car can seemingly ruin your year, but it’s especially traumatic if you have an upside-down car loan.
If you don’t pay by the end of this grace period, they’ll cancel your coverage. Going without coverage for any length of time is considered a lapse. A lapse in homeowner’s insurance is a period where you stop making your insurance payments. Without Gap insurance, you would essentially have to pay the $6,000 out-of-pocket yourself. Continue reading to learn more about GAP insurance, as this is a very critical financial decision. Any money you put down for lease or trade-in might not be included.
Before you buy GAP insurance, you should decide if it’s worth it. When you buy a new car, its value will begin to depreciate as soon as you drive it out of the dealership. Sign up for our Health Tip of the Day newsletter, and receive daily tips that will help you live your healthiest life. The insurer thinks there are in-network providers capable of providing the same service.
“Gap insurance is designed to cover the period to where your exposure is greater,” he said. Consumers with a long loan term or a small down payment could be underwater on their loan, leaving a “gap” of thousands of dollars. We try to take an open and transparent approach and provide a broad-based comparison service. However, you should be aware that while we are an independently owned service, our comparison service does not include all providers or all products available in the market. Where our site links to particular products or displays ‘Go to site’ buttons, we may receive a commission, referral fee or payment when you click on those buttons or apply for a product.
“A comparison of the vehicle’s current value with any unpaid amount due on the loan or lease is a great place to start,” she says. “Your insurance agent can also assist by reviewing those values with you and helping to determine how long you should maintain gap coverage.” Gap insurance is a smart purchase for those with loans or leases. The coverage will protect you from the loss of your vehicle, whether it is stolen or damaged in an accident while under lease/loan terms.
Plus, it’s easy to get stuck in this cycle, which would eventually make the gap between the car’s value and the loan amount quite wide. Even if you would be able to recover the costs of paying off the interest from your RV loan well, there’s something to be said about having that peace of mind that comes with extra insurance. Nothing is stopping anyone from getting insurance just to feel a little more confident on the road. People don’t realize this, but the down payment that you put on vehicle loans often goes straight towards interest payments. If you don’t have at least 20 percent down, you could be underwater for a serious length of time.
This situation arises when the balance owed on a car loan is greater than the book value of the vehicle. The car dealership will probably offer you a gap policy but the price will almost certainly be higher than a major insurer will offer. In any case, check to make sure you don’t already have gap insurance on your vehicle. Auto lease deals often build gap coverage into their pricing. Yes; this policy is an option for you if you have purchased your car via a finance agreement.
If you’re buying a used vehicle that’s already lost a lot of its value, then gap insurance probably isn’t necessary. It also isn’t necessary if you’re making a large down payment on the vehicle and will already have a healthy amount of equity in it before you’ve started making payments. To see your vehicle’s current value you can consult a resource such as Kelley Blue Book. Liability car insurance provides financial protection for drivers who harm someone else or their property while operating a vehicle. If you put down less than 20% on a car, you’re wise to get gap insurance at least for the first couple of years you own it. If the car is wrecked, you won’t have to pay out-of-pocket to make up the shortfall between the insured value of the car and the amount you owe a lender.
A second-generation native of Los Angeles, Geffner now lives in Ventura, California, a surf city northwest of her hometown. They’re called car “accidents” for a reason – they happen unexpectedly, which is why you want to make sure you’re covered before it happens. That’s because a new car becomes a used one as soon as you drive it off the dealer’s lot. A used car is usually worth less than a new one of the same make, model, and year. Instead, you’d be limited to spending no more than the cash value you received for your wrecked car, plus any other cash you have available to buy a replacement car.
If the risk of a collision or total loss is going to be astronomically low, you might want to consider just skipping GAP altogether. The typical “expiration date” for a GAP insurance policy is 10 years or at the point where you’re currently paying off the principal amount of your loan. Should you decide to cancel your GAP insurance contract right after purchasing the policy , you can contact your insurance provider and ask for a refund. There are various ways you can request a GAP insurance refund , but you have to check with your insurer what the appropriate method under the company policy is.
That includes drivers who put little money down or have a protracted loan payoff period. If you’re interested in cutting your car insurance costs, not paying for gap insurance once you don’t really need it is one way to save some money. So, it pays to shop around a bit, starting with your current auto insurer. Many insurers will allow you to add gap insurance to your existing auto insurance policy. Gap insurance has limits on how much the policy will pay out. It’s a good idea to make sure the limit on your gap insurance is enough to cover the difference between the amount remaining on the loan and the amount insured by your car insurance.
Yes; in the event that your finance settlement exceeds the purchase price of the vehicle this policy will settle the outstanding finance shortfall and release you from the finance contract. Yes; GAP insurance will include all drivers provided that they are covered on your comprehensive motor insurance policy to drive the vehicle as a named driver. Yes , our finance and contract hire gap insurance policies are extremely flexible and cover all types of finance contracts. As just one of the types of cover we offer, our finance gap insurance is designed to protect you from suffering a significant shortfall in the event of your car being written off. If you don’t have access to health insurance coverage through your employer, what do you do?
You might not need GAP insurance for the first year after buying a new car, because many car insurance policies will provide a replacement if the car is written off in that time anyway. In theory, GAP insurance is a good thing, but most people are paying too much for it because they’re buying it from dealerships rather than going directly to insurance companies. GAP insurance is bought by around 26% of new car buyers, and 91% of those do so through dealers. According to the Financial Conduct Authority , more than half of GAP insurance fees on these policies go to the dealership as commission. You could qualify for a refund, depending on the terms of the contract. If you just bought your car a few months ago, odds are you’ll be getting a refund.
Some cars depreciate faster than others, but expect a car to at least lose a chunk of its value the second you drive it off the dealer’s lot and another 15% to 25% every year after that. Due to depreciation, you might wind up owing more on your loan or lease than your car insurance company would reimburse you for. If you didn’t have gap insurance at the time of the accident, you’d have to pay off the rest of the loan.
Let’s say you owe $9,000 on your car but its market value is only $5,000. If you were to get in an accident and total your car, your insurance company might cover that $5,000, minus your deductible. A gap insurance policy could help cover that $4,000 shortage. No car owner wants to be stuck paying for a car that doesn’t exist.
Lease gap insurance may be incorporated into the costs if you lease your car . If your car is financed with a car loan, you may be required to add gap insurance to your car insurance coverage by your lender . On most auto insurance policies, III says gap insurance with collision and comprehensive coverage adds about $20 a year to the annual premium. If you buy gap insurance from a car dealership, expect it to cost a few hundred dollars.
The auto damage adjuster is responsible for writing the repair estimate for your vehicle. This adjuster will also answer your questions about the repair process, your rental vehicle, or your total loss settlement. If you don’t have uninsured motorist coverage and you are in an accident caused by someone without insurance, you may need to rely on your health insurance to pay for any injuries you may experience. Some insurance plans, however, refuse to pay for treatment as soon as the words “auto accident” get added to your chart.
As gap insurance is an additional cost on top of your car insurance policy, it’s important to understand it so you can decide whether you really need it. If you elect to carry GAP on your auto insurance policy, it will gallagher insurance cost about 5 to 6 percent of the full coverage premiums every term. If the amount of loan you have left to pay off comes to less than your car is currently worth, it’s time to cancel your gap insurance policy.
If you don’t have auto coverage, or if you’re concerned you’re overpaying, Savvy is worth a visit. Deductibles up to $1,000 are covered as well, which reduces your out-of-pocket expenses further if you have a total loss. Allstate’s guaranteed asset protection is part of a suite of consumer products sold through authorized dealers nationwide. With gap coverage similar to what you might find at a dealer, GAP Direct ticks all the boxes without the expense of dealer-purchased gap insurance.
But remember, if you sell or refinance the car before the term of your loan has expired, you should receive a refund. Even though you paid your gap insurance premium up front, the amount is still prorated over the life of the loan. The typical gap insurance rate is roughly 5% of the portion of your annual insurance premium related to comprehensive and collision coverage. These rates can vary a great deal based on car value, location, and driver history. Rather than helping you reach the amount you paid for the car, vehicle replacement cover bridges the distance between your car insurance payout and the cost of replacing your vehicle with a new one. Carefully check your car insurance t&cs and your finance provider’s policies on replacement vehicles to be sure you have cover that you’re comfortable with.
The policy protects your property and that of others when your action causes any form of damage. Check out what to do if your property was damaged in Louisiana in this article. The second policy category under the USAA gap insurance is single-vehicle insurance. Single-vehicle insurance offers cover for either the vehicle or the driver.