WHO IS COVERED BY MY POLICY WHEN THEY DRIVE MY CAR ?
Understanding “ permissive use ” when it comes to car insurance
INDUSTRY INSIGHT
INSURANCE SPONSORED CONTENT
Insurance 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 ?
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 .
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 .
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 .
Norwin | Fall 2017 | icmags . com 9