The holidays are a time for gathering with loved ones and traveling to see family, which sometimes means lending your vehicle to friends or relatives in need of a ride. But have you ever stopped to consider what happens if someone else drives your car and gets into an accident? When this happens, it can often lead to personal injury and vehicle damage that can complicate insurance and legal proceedings. Events like this fall under the concept of permissive use, which determines whether your car insurance will cover damages when someone else drives your vehicle. Now, let’s break down what permissive use means, how it applies, and what you need to know to protect yourself and your vehicle.
What Is Permissive Use?
Permissive use refers to situations where you allow another person to drive your car. In most cases, your car insurance policy extends coverage to the driver if they have your explicit permission to use the vehicle. This means your policy can cover damages caused by an accident, including property damage and bodily injury, as long as the driver isn’t explicitly excluded from your policy.
However, it’s important to note that permissive use coverage may not be as comprehensive as when you, the policyholder, are driving. For example, liability coverage often applies, but collision or comprehensive coverage may have limitations or higher deductibles when the car is driven by someone else.
Common Scenarios for Permissive Use During the Holidays
The holiday season is full of cases where permissive use might come into play. For example:
- Borrowing the Car for Errands: A visiting family member may borrow your car to pick up groceries or gifts.
- Designated Drivers: During holiday gatherings, a sober friend might drive your car home for you.
- Traveling with Relatives: A sibling or cousin might take the wheel during a long road trip.
- Helping a Friend: A friend might borrow your car to run last-minute holiday errands.
While these situations seem straightforward, they can quickly become complicated if an accident occurs. Knowing your policy’s permissive use rules ahead of time can save you from unexpected financial or legal troubles.
How Does Permissive Use Affect Your Insurance?
When you allow someone else to drive your car, your car insurance policy typically acts as the primary coverage in the event of an accident. This means that:
- Your Insurance Pays First: Your policy covers damages up to your coverage limits before the driver’s personal auto insurance (if they have it) kicks in.
- Deductibles Still Apply: If collision or comprehensive coverage is involved, you’ll need to pay your deductible before your insurer covers the remaining costs.
- Policy Limits Matter: If the accident costs exceed your policy limits, the driver’s insurance may cover the remaining damages. If they don’t have insurance, you could be held personally responsible for the difference.
Potential Exclusions and Limitations
While permissive use generally provides coverage, there are situations where it might not apply.
Excluded Drivers
Some policies explicitly exclude certain individuals from coverage, even if you give them permission to drive. For example, if you’ve excluded a high-risk driver from your policy to reduce your premiums, they won’t be covered in the event of an accident.
Unlicensed or Unauthorized Drivers
If the person driving your car doesn’t have a valid driver’s license or takes the car without your permission, your insurance is unlikely to cover any damages.
Commercial Use
If your car is used for commercial purposes, such as delivering packages or ride sharing during the holiday season, permissive use coverage may not apply unless you have specific commercial coverage.
What to Do if an Accident Happens
If someone driving your car gets into an accident during the holidays, it’s important to act quickly and follow these steps:
- Ensure Safety: Make sure everyone involved is safe and seek medical attention if necessary.
- Contact Authorities: Report the accident to the police and obtain a copy of the accident report.
- Exchange Information: Gather details from all parties involved, including names, contact information, and insurance details.
- Document the Scene: Take photos of the damage, road conditions, and any other relevant details.
- Notify Your Insurance Company: Report the accident to your insurer as soon as possible and provide them with all the necessary information.
Tips for Lending Your Car Safely During the Holidays
If you plan to let someone else drive your car this holiday season, here are some tips to protect yourself:
- Verify the Driver’s License and Insurance: Make sure the person borrowing your car has a valid driver’s license and, ideally, their own car insurance. This can provide an additional layer of protection in case of an accident.
- Set Clear Rules: Communicate any limitations or rules for using your car, such as where they can drive and how long they can use it.
- Review Your Policy: Check your insurance policy to understand its permissive use terms, including any exclusions or limitations.
- Avoid High-Risk Drivers: If someone has a history of traffic violations or accidents, think twice before handing them the keys.
Frequently Asked Questions About Permissive Use
Does permissive use apply to rental cars?
Permissive use typically applies to your personal car, not a rental vehicle. Rental car companies have their own policies regarding who is allowed to drive the vehicle.
Will my insurance rates increase after an accident involving permissive use?
If a driver using your car under permissive use is involved in an accident, the claim will go on your insurance record, which could lead to higher premiums.
Does permissive use cover all types of damages?
While liability coverage usually applies, collision and comprehensive coverage may have restrictions or require higher deductibles for permissive use claims.
Protecting Yourself During the Holidays
Permissive use can provide valuable flexibility during the holiday season, allowing you to lend your car to trusted friends and family members when needed. However, it’s essential to understand how your car insurance policy handles permissive use, what limitations may apply, and how to protect yourself in the event of an accident.
Before handing over your keys, take a moment to review your policy, set clear expectations, and ensure the driver is responsible and licensed. With a little preparation, you can enjoy the holidays with peace of mind.
If you’re dealing with an accident involving permissive use or need help navigating an insurance claim, VandenBout Law is here to help. Our experienced attorneys specialize in insurance disputes and know how to leverage their extensive experience to secure you the compensation and support you deserve. If you have any questions, don’t hesitate to contact us today for a free consultation.
