INDUSTRY INSIGHT
INSURANCE
SPONSORED CONTENT
WHO IS COVERED BY
MY POLICY WHEN
THEY DRIVE MY CAR?
Understanding “permissive use”
when it comes to car insurance
I
nsurance is an industry dominated by specifics. Details. Numbers
and facts. But sometimes the terms and conditions under which
you or your loved ones are insured can be quite vague—even
confusingly so. One such tricky topic
that we frequently hear about centers
on personal auto policies and who can
use a named insured’s vehicle.
Most car insurance policies in
Pennsylvania allow for any licensed driver to operate your vehicle so
long as they are permitted explicitly or implicitly by the named insured
to do so. But in certain cases, your insurance provider might require a
person to be added as a named insured to your policy.
So, who can use your car without being added to your policy?
How exactly your insurance provider interprets “regularly furnished
use” will depend on the provider. That’s why it’s important to have
someone like us—an independent insurance agency with access
and close relationships with more than 40 insurance companies—to
explain the more confusing aspects of insurance. One call to us, and
we can help you make the decision that’s right for you and your loved
ones, based on an understanding of your exact circumstances.
FRIENDS, FAMILY, AND SIGNIFICANT OTHERS?
These three types of individuals likely make up the bulk of who
might drive your car. As long as they are licensed, and have explicit or
implicit permission to drive it—regardless of whether you’re in the car
with them—they will be covered under your policy, not their own.
TEENS WITH PERMITS?
Teens with learner permits are generally not required to be added to
your policy until they officially become licensed drivers. However, it’s
still a good idea to let your insurance company know you have a new
driver in the household, even if there are still months to go before the
licensing exam. Once licensed, teens can get their own policy, but it’s
typically cheaper to just add them to yours.
ROOMMATES?
This is where permissive use gets a bit tricky. In the case of an
accident, if it’s found that your roommate (or anyone else using your
car for that matter, including friends, family, and significant others)
was provided “regularly furnished use” of the vehicle, then the claim
can be disputed. Anyone with frequent, regular access to your vehicle
should be added to your policy as a named insured. Otherwise, your
insurance company might refuse to cover a future claim.
This Industry Insight was written by CANDICE FIORE SCHAFFER, a licensed
insurance agent able to sell all types of insurance products including personal,
business, life, and health. Her main focus is on business insurance and the personal
insurance for those business owners. Candice has been with Rupp-Fiore Insurance
since 1990. She earned her bachelor’s degree at the University of Pittsburgh and
a master’s degree in Risk Management/Insurance from Florida State University.
Through the National Alliance of Insurance Education, Candice has also earned the
Certified Insurance Counselor (CIC) and Certified Risk Manager (CRM) designations.
Monroeville | Fall 2017 | icmags.com 7