For those uneducated in the matter, when you lend your car to someone else, that driver is referred to as a permissive driver by the insurance industry. If a permissive driver causes an accident, here's how the insurance companies will respond.
Auto Insurance and an Accident Caused by a Permissive Driver
If you gave permission to someone not listed as a driver on your auto insurance policy and that person causes a car accident, the procedure is generally as follows.
1. In the event the driver and the car owner have individual auto policies, the car owner's insurance will pay for damages under the collision part of the coverage - after any required deductible is paid out-of-pocket by the policyholder.
3. What if the person who borrowed the car got into an accident but did not have a valid driver's license? In this case, there's a good chance that coverage may be denied. Many insurance company exclude coverage for an unlicensed driver. If this occurs, the car' owner you and the 'permissive driver' will be responsible to pay for all damages as well as court fees if there are any.
But aside from related aggravation and possible wallet burnout,policyholders may find their premiums up at time of the policy's renewal.
Of course, anyone dealing with an experienced independent agency that's appointed to do direct business with many of the leading underwriters have an advantage of working with the edge in the market to locate the lowest premium available under the circumstances.
Prime Insurance: we're a 3-generation family-operated independent agency, appointed to do direct business with many of the leading underwriters. Our network includes companies like Ace, AmTrust, ASI, Assurant, Chubb, CNA, Employers, Foremost, Liberty Mutual, MetLife, Progressive, Safeco, StillWater, Travelers, The Hartford, USLI, Zurich and more - giving us the edge in locating precise coverage options at competitive lowest quotes. Find us at https://www.primeins.com/ or call us at 732-886-5751 or email us at Prime@primeins.com!
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