What Is Permissive Use and What Does It Mean To You?

At some point, you’ve probably given a friend or family member consent to drive your car without a second thought. But did you know that, in many cases and under certain policies, driving another individual’s car is not covered by insurance, even with their verbal consent?

Let’s start with a few key terms you need to know.

Permissive use refers to a situation in which one individual allows another individual to drive their car, usually on a consistent basis.

And a permissive driver refers to the individual who was given permission to drive the other individual’s car.

It might seem okay to let a friend, roommate, or relative drive your car, but in the eyes of insurance, this type of consent does not necessarily mean that you are covered in the event of an accident, and policies can vary from company to company.

In general, however, if the driver is a resident in your household or a relative, they should be listed on your policy as a driver. Permissive use typically refers to someone who has regular access to the insured vehicle, is related to the vehicle’s owner, or has driven the car in the past.

And what if you have a child who is away at school and isn’t driving a vehicle? Are you still required to pay the premium, even if they are not current residents? This all depends on your insurance company and your specific auto insurance policy.

Often, policyholders are tempted to exclude drivers with points on their record or who have little driving experience from their policy in an attempt to avoid higher premiums, but the bottom line is this: Neglecting to list all residents, relatives, and consistent drivers of your vehicle on your policy could lead to some major consequences, especially in the event of an accident.

If a permissive user gets in an accident while driving your car, whose car insurance covers the damages? The answer depends on the type of insurance coverage. The basic rule for collision and comprehensive insurance is that the insurance covers the vehicle, not the driver. This means your insurance will cover your car even if you are not driving.

For liability insurance, however, costs may be covered by both your insurance and the driver’s insurance. Liability insurance covers the cost of damage for the party who is at fault in the accident. In a serious accident, damages to personal property, medical bills, and other costs can amount to a large sum. If your liability insurance does not cover the entire amount, the driver’s insurance may be used to absorb the overflow. If the driver of your vehicle does not have liability insurance, you will be personally responsible for the remaining amount.

Again, the parameters of permissive use vary from one carrier to another and policy to policy. To better understand the terms of your policy and how it defines permissive use, give us a call and we can review your automobile coverage and help you determine what is right for you.