Co-Founder and Agent, Chase Bridwell, discusses what you should know about letting other people drive your car!
When people call into our office about their auto insurance policies, we frequently get asked “Is [somebody else] covered on my auto policy?” Typically, they are talking about situations where they have a relative staying with them or a friend that’s borrowing their car.
Auto Insurance is so fun and so exciting. I can’t wait to share this week’s tip with you! When people call into our office about their auto insurance policies, we frequently get asked “Is [somebody else] covered on my auto policy?” Typically, they are talking about situations where they have a relative staying with them or a friend that’s borrowing their car.
Permissive use is a term that you may have heard tossed around. In the insurance world, “Permissive Use” simply means you explicitly or implicitly allowed another person who is not specifically covered (by name or household member) on your current policy to operate your vehicle.
The most straightforward answer I can give you if you’re wondering whether or not somebody is covered on your policy, or if you are covered personally driving another car you do not own, is this: Check with your current insurance provider and check your current policy language. Every company is different in how that is applied and what they expect.
To give you an example, Progressive is one of the insurance carriers we work with and they are very particular when it comes to permissive use coverage. Anybody that is listed in the household has to be on the policy- no questions, no if’s, and’s, or but’s about it. On the other hand, some companies have a little bit more leniency. If the person borrowing your car has a policy on their own, they may be covered on your auto policy. Again, check with your insurance company and your current policy.
One thing that I can say is if you borrow somebody else’s car, as long as it qualifies permissive use, in most cases, you will actually see your insurance cover you for liability. However, it will not extend your auto policy’s full coverage for comprehensive and collision to the lender’s car. So if the person who lent you the car does not have full coverage, their car repairs will not be covered by the insurance payout. They will have to cover the repair cost themselves. But if you’re responsible for an accident while driving someone else’s car, your liability will come into play and their comprehensive and collision coverage will come into play.
In short, if you have somebody staying with you for extended periods or are allowing them to use your car for random errands, ask your insurance provider if they are covered. If they are not, add them to the policy! It is very simple and inexpensive if they have a clean driving record!