Does Homeowners Insurance Cover Vehicles in Your Driveway?


Homeowners insurance provides essential protection for your home and possessions but does not cover vehicles. No matter where your car is, whether parked in your driveway or inside a garage, homeowners insurance does not extend coverage to vehicles. The same holds true whether it’s your vehicle or a friend’s vehicle in your driveway.

You need an auto insurance policy to protect against theft, damage or accidents involving your vehicle. These policies are designed specifically to offer the required financial protection for your car.

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Key Takeaways

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Homeowners insurance does not cover vehicles; auto insurance is required for comprehensive vehicle protection.

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Homeowners liability insurance offers asset protection, including cars, against lawsuits but doesn't cover car damages or injuries.

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In events affecting both home and vehicle, separate claims must be filed under homeowners and auto insurance policies.

Does Homeowners Insurance Cover Vehicles In Your Driveway?

Homeowners insurance does not extend coverage to vehicles parked in your driveway, regardless of the cause of damage or loss. This policy is designed specifically to protect your home and the personal belongings within it, not the vehicles outside.

As distinct assets with their own set of risks, vehicles require a separate form of protection; this is typically provided by auto insurance policies. This differentiation ensures that each type of policy can be tailored to the specific kinds of protection needed for the asset it covers, ensuring more effective and comprehensive coverage for both your home and your vehicles.

Homeowners Liability Insurance Can Protect Your Car

While homeowners insurance does not cover damages or injuries directly caused by your vehicle, it plays a crucial role in offering liability protection for your assets, such as your car, in the event of a costly lawsuit. If an incident on your property leads to a lawsuit where you are found liable, your homeowners liability insurance could cover legal settlements. Without sufficient liability coverage, your assets, including your home, car and even retirement savings, could be at risk to cover these costs. Adequate liability coverage is key to protecting the full value of all your assets.

It's common for both homeowners and auto insurance policies to provide liability coverage up to $500,000, but this may fall short if your total assets surpass this figure. In such cases, umbrella insurance is recommended to extend your liability coverage beyond the limits of your standard home and auto insurance policies, offering additional financial security.

What Insurance Covers Vehicles in Your Driveway?

To protect your vehicle, you need to purchase auto insurance, which is specifically designed to safeguard vehicles against a range of incidents, including theft, accidents and natural disasters. In most states, auto insurance is required to protect you against a wide array of potential risks, including:

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    Theft

    Protects against the loss of your vehicle due to theft.

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    Accidents

    Covers damages to your car resulting from collisions, regardless of who is at fault.

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    Natural Disasters

    Offers protection against damage from natural events like hail, floods and fires.

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    Vandalism

    Shields against damages from acts of vandalism.

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    Liability

    Provides coverage if you're responsible for injuring someone or damaging another person's property with your vehicle.

Can You File a Claim if Your Car and Home Are Damaged in the Same Event?

If a covered peril simultaneously damages both your home and car, navigating the claims process requires understanding that two separate policies are involved. Typically, this means you will need to file two distinct claims: one with your homeowners insurance for the damage to your home and another with your auto insurance for the damage to your vehicle. This process is necessary because each policy is designed to cover specific types of damage under their own terms and conditions.

Here's what you should do:

  1. 1

    Assess and Document the Damage

    Take detailed photos and notes of all damages to both your home and vehicle.

  2. 2

    Contact Your Insurance Providers

    Notify both your homeowners and auto insurance companies as soon as possible to start the claims process. It would be easier if you have a bundled homeowners and auto insurance from the same company.

  3. 3

    Follow Their Guidance

    Each insurance company will guide you through their claims process, including providing estimates for repairs.

  4. 4

    Keep Detailed Records

    Keep every record and maintain open communication with both insurers to ensure a smooth claims process.

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MONEYGEEK EXPERT TIP

Bundling home and auto insurance is a great way to manage claims in the event of a covered peril. The best home and auto insurance bundles grant you discounts and streamlines how you manage all your policies.

FAQs

Navigating the intricacies of insurance coverage can often feel overwhelming, especially when determining what is covered under homeowners versus auto insurance policies. It's crucial to understand the distinctions, particularly as they pertain to vehicles and related damages. We answered common questions about the scope of homeowners insurance in relation to vehicle incidents to provide clear insights to help you make informed decisions about your insurance.

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About Mark Fitzpatrick


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Mark Fitzpatrick is a Licensed Property and Casualty Insurance Producer and MoneyGeek's Head of Insurance. He has analyzed the insurance market for over five years, conducting original research and creating personalized content for every kind of buyer. He has been quoted in several insurance-related publications, including CNBC, NBC News and Mashable.

Fitzpatrick earned a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He is passionate about using his knowledge of economics and insurance to bring transparency around financial topics and help others feel confident in their money moves.