Your friend gives you their keys and the go-ahead to take their car. Are you taking a big risk by driving the car? What will happen if you get in an accident? Hopefully, this article will clear a lot of the confusion around this. How does permissive use work? Permissive use is exactly what it sounds like: someone else drives your car after you have given them permission to do so. We have all been in a situation where someone lets us drive their car, or vice versa, and insurance companies are very aware that this happens. This is perfectly acceptable as long as the owner of the car has given permission to do so. If someone has permission to drive the vehicle from the owner/insured, the policy that the vehicle is insured under can pay out for a claim. Keep in mind that this can vary by state and insurance provider, but the below applies to most situations. Permissive use begins to get a little more complicated when we start thinking about who we can and cannot give permission to. Here are some examples of people who we can give permissive use to:
These are all people who have their own insurance elsewhere and will not be operating your vehicle on a regular basis. Here are some examples of people who we can’t give permissive use to:
With auto insurance, you always want to be sure that all licensed drivers in the household are listed on your auto policy. Permissive use is not to be used for people who live in your household. They should either be included on your policy or excluded from driving the vehicles altogether. Does My Auto Policy Cover me for driving someone else's car? In some cases, it can and will. In others, not so much. This is a topic that varies by the state, carrier, and situation. In general, auto insurance will typically follow the car no matter who is driving it (Assuming the driver has permission to drive it). Here are the ways that some coverages will apply if you cause an accident while driving someone else’s car:
How does my car insurance work when I rent a car? Nearly all of the coverages on your personal auto insurance policy will extend to a vehicle that you rent, as long as that vehicle is a similar vehicle class. If your policy covers a personal use vehicle, then you should have coverage extended to any personal use, non-commercial vehicle you rent. If you rent a U-Haul to move, you likely would not have coverage extend for physical damages to the U-Haul given that it is a commercial use vehicle. You may get a little shaken up with the process of accepting or neglecting the additional insurance coverages offered by the rental car company due to lack of understanding, but this should clarify it for you. The three main types of coverage offered by rental car companies are a Damage Waiver for physical damage to the vehicle, extended liability, and a form of personal injury coverage. These apply whether you are renting a car in your state, or across state lines! Let’s take a look at these.
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