Have you ever wondered what happens with your car insurance when you lend your vehicle to a friend or family member? Let’s dive into the concept of “permissive use” and what it means for your coverage.
What is Permissive Use?
Permissive use is a clause in your car insurance policy that extends coverage to other drivers who borrow your vehicle with your permission. This permission can be either explicit (directly stating they can use your car) or implied (such as a teenager getting milk from the store or a roommate moving your car to mow the lawn).
How Does Permissive Use Work?
When someone borrows your car with permission, they’re typically covered under your insurance policy up to the same limits and types of coverage you have. For example, if you have liability coverage of $25,000 for property damage, that same coverage extends to the permitted driver.
However, it’s important to note that not all insurance policies include permissive use coverage, especially with smaller insurance companies. This is why it’s crucial to understand the specifics of your policy.
Named Drivers vs. Permissive Use
There’s an important distinction between permissive use and named drivers on your policy:
- Permissive Use: Ideal for occasional drivers who borrow your car 12 times a year or less
- Named Drivers: Required for regular users of your vehicle, such as:
- Family members living in your household
- People who drive your car weekly
- Regular carpooling arrangements
Important Considerations
When Borrowing Someone Else’s Car
- Their insurance acts as the primary coverage
- Your own insurance may serve as secondary coverage if damages exceed their limits
- Having uninsured/underinsured motorist coverage is crucial for gap protection
Non-Permissive Use
If someone drives your car without permission, your insurance typically won’t cover any damages. This makes it essential to be clear about who has permission to use your vehicle and when.
Family Members
- Family members who don’t live with you may be covered under permissive use for occasional borrowing
- Family members living in your household should be added as named drivers
- This is especially important for teenage drivers
Best Practices for Car Sharing
- Always be explicit about giving permission
- Know your policy’s specific coverage for permissive use
- Add frequent drivers to your policy as named drivers
- Confirm insurance coverage before borrowing someone else’s car
- Maintain open communication with your insurance agent about who drives your vehicle
Mid-Columbia Insurance
– Your Trusted Independent Insurance Agent
Understanding car insurance coverage can be complex, but you don’t have to figure it out alone. Mid-Columbia Insurance has been serving Washington State since 1995 with bilingual agents who can explain your coverage options easily. As an independent agency, we work with multiple insurance companies to find the best coverage for your specific needs.
Whether you’re concerned about permissive use coverage or want to review your current policy, contact Mid-Columbia Insurance today at (509)783-5600 or click “Get a Quote” for expert guidance and a personalized quote. Their team of experienced agents can help ensure you have the right coverage for every situation, whether you’re lending your car or borrowing someone else’s.
Don’t wait until after an accident to discover gaps in your coverage. Reach out to Mid-Columbia Insurance today to understand your options and protect yourself and your vehicle.
