What is Permissive Use?
Even though you own your car, there may be different situations in which another person may need to drive. If the person driving is a member of your household – such as your spouse or teenage children – they are likely included in your auto insurance coverage. However, what happens if you allow someone outside of your immediate family to borrow your car or drive on an occasional basis?
Often, an auto insurance policy will provide coverage for “permissive use” of your vehicle by others who would not normally be covered. If a friend borrows your truck to move a piece of furniture or if a relative needs access to a car during a short visit, permissive use will likely provide coverage if they get into an accident. Before you lend out your vehicle, however, you should always check with your insurance agent to make sure that your policy covers your particular permissive use situation. This will help to avoid unnecessary liability for you should an accident occur.
Even if your auto insurance policy has a permissive use clause, there still may be situations in which another driver is not covered when they borrow your car. The following are the two main exceptions to permissive use insurance coverage:
- If you allow a person with very little driving experience or without a valid driver’s license to operate your vehicle, you will likely not be covered if they get into and accident. You should always ensure that anyone borrowing your car has a license and adequate experience.
- If a person uses your car to engage in any type of business, it would require you to have “business use” coverage and would not be covered under regular permissive use. For this reason, always check to make sure anyone using your car is not making business-related deliveries, driving to meetings or appointments, or similar business reasons.
Many permissive use rules are included in the fine print of your auto insurance policy. It is critical that you understand your coverage before you ever loan your car to someone who is not included on your policy.
Contact us today for a quote.
At the Skeele Agency, Inc., our auto insurance agents will walk through all of the details of your policy with you so that you understand the limits of your coverage. We can also help you expand your coverage if you plan to loan your vehicle out on a regular basis. Call one of our New York offices for more information today.