Car insurance requirements vary by state, but most states require all drivers to carry a minimum level of liability insurance. Auto liability follows the driver, not the car. This fact means that if you drive a friend's car, your liability covers you, not the friend's insurance.

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Essentially, the personal aspect of liability coverage means that if you cause an accident in someone else's car, your auto liability kicks in. Your individual liability coverage also typically applies if you rent a car. Car owners have to exercise caution in letting uncovered motorists drive their vehicles. CarsDirect notes that if you let an uninsured person operate your car, you could run into a sticky legal situation if he causes an accident.