Top 4 Things To Consider Before Lending Your Keys To Permissive User

Hey, guys. Jason here with 303 Insurance Brokers and I wanted to share a pretty important insurance tip with you as we head into the holiday season.

You know, we have Thanksgiving coming up. We have Christmas coming up, and that a lot of times means we’re going to see out-of-town family, out-of-town guests, and there’s a good chance that we may allow other people outside of our household to drive our vehicles. So what does that mean from an insurance standpoint?

What is a Permissive User?

Auto insurance companies define a permissive user as not on the policy but driving an insured vehicle with the owner’s permission. The permissive user may or may not be covered in the event of a loss depending on the insurance contract term and the state laws on permissive driver use.

Know Your Permissive User Coverage

First off, I have to say that every insurance policy and policy language can be slightly different from different carriers. For example, most auto insurance carriers allow for permissive drivers-drivers that you permit to operate your vehicle. Still, some carriers have started to exclude permissive drivers or reduce the liability coverage of permissive drivers.

Things To Consider Before Handing Your Keys

So it’s super important that before you hand your keys to a friend, a family member, or somebody else to drive it, you understand the ramifications of what happens if that person gets into an accident.

1. Are they covered?
2. Are they covered at the same level?
3. What’s going to happen to your insurance rate?
4. Insurance follows the vehicle, so if somebody else is driving your car and gets into an accident, that will negatively rate your insurance.

Reach Out To Your Insurance Agent

So, important questions. If you don’t know the answer to any of them, reach out to me. Reach out to your local insurance agent, and we can review your policy and make sure that you’re comfortable with what if you hand your keys to a friend or a family member if you utilize that permissive driver. My contact information is Jason@my303Insurance.com or 303-506-2755, and we’ll talk to you real soon. Have a great day.