Permissive Use 101

Germany full-size luxury SUV

Your Guide To Lending Out Your Keys

You are a nice person. When someone needs a favor, you generally tend to oblige. That is a great character trait, but it could end up costing you. If you loan out your car to a friend or family member, you give that person “permissive use” of your vehicle. That means that you are letting someone who is not listed on your insurance policy behind the wheel.

What if someone you have given permissive use gets into an accident? Liability insurance travels with the insured vehicle, not the driver. That means that even if your friend gets into an accident while you are across town sitting safely at home, you will be held responsible for damages and injuries.

If people get injured, fatally or otherwise, you could be held liable for up to tens of thousands of dollars. Even if all that occurred was property damage, you will still find your liability limits cap out at thousands of dollars.

If, however, you were not careful when you gave over your keys and you let a reckless or inexperienced driver behind the wheel, the liability limits do not apply. That means that you could be on the hook for a huge sum of money.

Fortunately, your auto insurance can step in as long as the driver does not use your car on a regular basis. If, however, the driver either lives with you or uses your car regularly, you need to have him or her listed on your policy in order for your coverage to kick in.

If you have questions about permissive use regulations and how to protect yourself even when you are doing someone a favor, contact Bell Black Insurance. Conveniently located in Rexburg, we are here to meet all of your Idaho car insurance needs. The safety of you, your vehicle, and your wallet is our priority.