This study focused on how teams allocated attention between a driving-related spatial task and a verbal task, and how different kinds of verbal interactions affected performance of the driving-related task. In Experiment 1, 29 two-person teams performed an interactive verbal task while one team member also performed a simulated driving task. Of the team members performing only the verbal task, half could see their partner's spatial situation, as a car passenger can (in-person condition), and half were remotely located, similar to someone speaking to a driver using a cell-phone. Teams interacted verbally at an overall slower rate during remote than in-person interactions, suggesting that remote verbal interactions are more difficult than in-person interactions. Verbal interactions degraded situation awareness for driving-related information while performing the spatial task; and this degradation was not greater during remote than in-person interactions. Experiment 2 used a faster-paced verbal task and found greater degradation of situation awareness due to the verbal task. These findings are potentially relevant to the issue of how passenger and cell-phone conversations affect driving performance.