The holidays bring family and friends together, often leading to shared dinners, heartfelt laughter — and shared cars. But what happens if you get into a car accident while driving a vehicle that isn’t yours? This scenario is more common than you might think during the holiday season, and understanding the concept of permissive use is crucial to protecting yourself legally and financially.
In this blog, we’ll break down what permissive use means, how it affects insurance coverage, and what steps to take if an accident occurs.
What Is Permissive Use?
Permissive use refers to a situation where the owner of a vehicle allows someone else to drive it. This permission can be explicit, such as when a family member hands you their keys, or implied, like when you borrow a friend’s car for a quick errand.
When you drive another person’s car with their consent, you are typically covered by their insurance policy. However, coverage isn’t always guaranteed or straightforward. There are limits, conditions, and exceptions you should be aware of before getting behind the wheel of someone else’s car.
Does the Owner’s Insurance Cover Permissive Use?
In most cases, yes. The owner’s auto insurance policy is the primary coverage, meaning it will be the first to pay for damages or injuries resulting from an accident. Your own insurance may act as secondary coverage if the owner’s policy limits are exceeded.
However, not all insurance policies automatically extend coverage to permissive drivers. Here are some common limitations:
- Policy Exclusions: Some policies specifically exclude permissive use, especially for high-risk drivers like those with a history of accidents or traffic violations.
- Household Drivers: If you live with the car owner but aren’t listed on their policy, the insurance company might deny coverage for an accident.
- Commercial Vehicles: If you’re borrowing a company vehicle, permissive use rules might not apply, as these vehicles often require separate commercial insurance policies.
Always check with the vehicle owner or their insurance provider to confirm coverage details before borrowing a car.
What Happens If You’re in an Accident?
If an accident occurs while driving a borrowed vehicle, the insurance claim process can become more complex. Here’s how it typically unfolds:
1. Primary Coverage Applies
The owner’s insurance policy usually covers:
- Liability for damages to the other party’s vehicle or property.
- Medical expenses for injuries to the other party.
However, this coverage applies only up to the policy’s limits. If damages exceed those limits, secondary coverage (e.g., your own insurance) may come into play.
2. Out-of-Pocket Costs
If the owner has a high deductible or insufficient coverage, you may be asked to cover the gap. Additionally, if the accident was your fault, their premiums could increase—leading to an awkward holiday dinner conversation.
3. Uninsured Drivers
If the car owner doesn’t have insurance, you could be held personally liable for damages. This is why it’s crucial to confirm the vehicle is insured before taking it on the road.
Special Scenarios to Consider
Family Borrowing
Holiday gatherings often mean family members swapping cars for convenience. If a close relative borrows your car and is involved in an accident, insurance coverage will likely extend to them. However, coverage might not apply if the relative resides in the same household but isn’t listed on your policy.
Rental Cars
Renting a car for holiday travel? Your personal auto insurance may extend to the rental, but it’s wise to double-check. Rental car companies often offer additional insurance, which can provide peace of mind for out-of-town trips.
Non-Permissive Use
If someone takes your car without permission and causes an accident, their insurance (if they have it) will usually be considered primary. If they are uninsured, you may need to file a claim under your own policy.
Steps to Take After an Accident in a Borrowed Vehicle
If an accident occurs while driving someone else’s car, follow these steps to protect yourself legally and financially:
- Ensure Safety First
- Move to a safe location if possible.
- Call emergency services if there are injuries or significant property damage.
- Exchange Information
- Gather the names, contact details, insurance information, and license plate numbers of all parties involved.
- Document the Scene
- Take photos of the damage, the surrounding area, and any relevant road conditions.
- Notify the Vehicle Owner
- Inform the owner immediately. They’ll need to contact their insurance company to begin the claims process.
- File a Police Report
- Depending on state laws, you may be required to file a report for accidents involving injuries, significant damages, or uninsured drivers.
- Contact an Attorney
- If there are disputes over liability or coverage, consult a personal injury attorney to protect your rights.
How LifeLaw Can Help
Navigating the aftermath of an accident in a borrowed vehicle can be overwhelming, especially if you’re unsure about insurance coverage or liability. At LifeLaw, we specialize in personal injury cases and are here to help you understand your rights and options.
Whether you’re facing an insurance dispute or seeking compensation for injuries, our experienced attorneys will guide you every step of the way. With our deep knowledge of Utah’s insurance laws and our commitment to client success, you can trust LifeLaw to advocate for your best interests.
Protect Yourself This Holiday Season
As you prepare for family gatherings and festive celebrations, take a moment to review your auto insurance policy and understand the terms of permissive use. If you’re borrowing or lending a vehicle, clear communication and proper documentation can prevent headaches down the road.
If you find yourself in an accident this holiday season, don’t navigate the complexities alone. Contact LifeLaw for a free consultation, and let us help you get back to what matters most — enjoying time with your loved ones.