Permissive use is a feature in a car insurance policy that extends coverage to someone you gave permission to drive your car who is not explicitly listed on your policy.
Most insurance companies include permissive use car insurance in their auto insurance policies. What permissive use car insurance does is that it allows unlisted drivers to have access to coverage under the policy while driving the policyholder’s car.
The most important thing is that the driver who intends to make use of the policyholder’s car must have expressed or implied permission for the cove rage to be applicable.
While permissive use car insurance offers a wide range of benefits, there are exceptions. Read on to learn more about it.
How Does Permissive Use Car Insurance Work?
Permissive use car insurance occurs when a car owner gives another individual permission to drive his or her car.
A permissive use clause in auto insurance can cover many different people. Whether the permission to use the vehicle was explicit or tacit, the permissive driver is typically covered under your insurance policy in the same way you are.
In tacit permission, the permission to take the vehicle is not spoken out, as it can be inferred from the nature of the relationship between the people involved or past behavior.
This means that the relationship between the owner of the vehicle and the other fellow must have been strong enough for him or her to take the vehicle.
For instance, if your wife drives to the store to get groceries using your car since it is the first and accessible car in the driveway,.
Another typical example is when your child takes your car without permission to pick up a friend who has just arrived from another state.
Whether explicit or tacit permission, the most important thing is that those who make use of the car should have access to the same protection you get from your policy.
Does All of a Car Insurance Policy Apply to the Permitted Driver?
If the permitted driver is included in your auto insurance policy, then he or she should be able to enjoy the benefits of your insurance policy when they make use of your car.
Primarily, the limit of the permissive use auto insurance for liability, collision, comprehensive, and other types of coverage is typically the same limit you get.
For those who live in Texas, car law insurance requires a driver to carry at least a minimum of $25,000 in property damage liability coverage.
Therefore, if you have $25,000 property damage liability coverage on your auto insurance policy, then the permissive user is limited to $25,000 property damage liability coverage.
In the event of any damage caused to the vehicle and the cost of repair is around $20,000, your insurance policy should be able to cover it.
Exclusions to Permissive Use Car Insurance
Although the essence of permissive use car insurance is to enable other individuals to have access to your vehicle with your permission, there are still some exceptions that your policy will not be able to cover. Highlighted below are the exclusions to permissive use car insurance:
- Commercial use: If you use a vehicle for commercial purposes, it won’t be covered under a standard car insurance policy.
- Criminal activity: Permissive use insurance does not apply to a situation where your car is being used for criminal activities.
- Excluded drivers: In a situation where an individual is specifically named on your policy as an excluded driver, permissive use car insurance is not applicable, and claims will be denied.
- Unauthorized drivers: If someone takes your vehicle without your permission and an accident occurs, your policy will not be able to cover the person.
- Unlicensed drivers: Individuals without a licensed document of driving will also not be covered under permissive use insurance.
There may be other limitations specified by your insurance provider. So the ideal thing to do is to reach out to them to get a better understanding of what it covers and what it does not.
FAQs
Can permissive use car insurance be extended to my family members?
Well, if any of your family members live with you and make use of your car occasionally, your permissive use car coverage should be extended to them.
However, if they live at the same address as you, you will have to add them to your insurance policy so they can enjoy the benefits of the coverage.
This is also done to cover expenses for any form of accident incurred while driving your vehicle. If you are unsure of the extent of your coverage, you can reach out to your insurance provider for detailed information.
Do all insurance policies include permissive use car insurance?
Yes, most insurance companies include permissive use car insurance alongside the policyholder’s coverage.
However, most policies require the driver to be named on the policy in order to get protection under it. It is important to understand the type of policy you are getting; this will help you know if you have permissive use care insurance.
