What is 'Permissive Use' Coverage in Auto Insurance

​Traffic accidents, where a vehicle is involved, are not automatically covered by car insurance. Usually, the driver’s name must be listed on the auto policy as the owner, as a household member or other else fall under the permissive user category. The question is, are you liable for any damages on your vehicle or someone else’s property caused by a more permissive user?

Below discusses the permissive use coverage in an auto insurance policy.

Listed on the Policy
If the car insurance listed under your names, there would be no problem, but some insurance plan covers household members. Household member means someone who lives with you in the same house and related by blood or marriage. Check with the insurance provider if the person you want to be covered might get considered as a household member. If not, then that person should be listed explicitly as a covered driver.

Definition of Permissive Use
Permissive use in an auto insurance policy means that you granted permission to a specifically unlisted name or household member to operate your vehicle. If your friend borrowed your car and allow it, that’s permissive use. Take note that some auto plan does not cover permissive use, has limited coverage, and increased deductibles in case of claiming permissive use auto insurance.

Exceptions on Permissive Use Coverage
Although your car policy includes permissive users, it does not cover the business purposes of your car. An example is a friend borrowed your vehicle to make a delivery, wherein the plan did not state that it covers business use of permissive user; you won’t receive any coverage for your friend who gets into an accident while delivering using your car.

Another exception is with inexperienced and unlicensed drivers. In case of accidents caused by an unlicensed driver or someone who has less driving skill than you, it might result in denial of coverage. Also, if the insurance company knew that a person with less driving skill drives your car, it is possible for them to increase your premium.

Summing Things Up
Triple check your insurance coverage before lending your car to a friend. Know what it provides on situations involving the permissive user. Take time to read the whole policy and always be careful who you lend your car. 

At Arnold, Bruce & Doerfler Insurance, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays and we're here to help you out. Learn more about our products and services by calling our agency at (503) 222-1951. You can also request a free quote by CLICKING HERE.