Almost everyone has loaned their car to a friend or family member at one point.
Many times people will let a friend or family member borrow their car without considering a possible lapse insurance coverage.
Although, most of the time nothing happens and the car returns safely to the owner, there are those other times when an accident occurs.
This is not the time to be calling the insurance company, inquiring about permissive use coverage.
The best way to ensure that your vehicle is covered is by purchasing permissive use coverage with your auto insurance package.
A permissive use policy will transfer some or all coverage to a non frequent driver.
What this means is any person who does not have regular access to the vehicle will have coverage transferred over to them in the event they are driving and a claim should arise.
It is important to note that any claims occurring after an initial claim involving the same person as the driver will not be covered, since they are using the vehicle frequently enough to cause multiple claims.
The permissive use coverage will only cover a driver one time, for one claim.
Another way to ensure comprehensive insurance coverage when loaning out a vehicle is making certain that the other driver is both licensed and insured.
If the driver has liability insurance that also has permissive use, then their policy will cover any liability claims that may arise.
It is also important to make sure they are licensed.
The vehicle owner can also get a ticket for loaning a vehicle to an unlicensed driver, should the driver be involved in a traffic stop or accident.
Insurance companies understand that sometimes other drivers will be using a vehicle; because of this, they offer permissive use coverage on auto insurance policies.
Although permissive use coverage is available, letting another driver borrow a vehicle should never be taken lightly.
Before loaning a vehicle out, it is important to ask whether the driver is licensed and if they have liability insurance.
If a person refuses to disclose this information, it is not advisable to allow them use of the vehicle.
It is always the owner's responsibility to ensure their car is driven by a licensed and insured driver.
Additionally, as it is the owner who will ultimately be financially responsible for any damages or tickets that result from the other driver, the owner should exercise caution when loaning out their vehicle.
Many times people will let a friend or family member borrow their car without considering a possible lapse insurance coverage.
Although, most of the time nothing happens and the car returns safely to the owner, there are those other times when an accident occurs.
This is not the time to be calling the insurance company, inquiring about permissive use coverage.
The best way to ensure that your vehicle is covered is by purchasing permissive use coverage with your auto insurance package.
A permissive use policy will transfer some or all coverage to a non frequent driver.
What this means is any person who does not have regular access to the vehicle will have coverage transferred over to them in the event they are driving and a claim should arise.
It is important to note that any claims occurring after an initial claim involving the same person as the driver will not be covered, since they are using the vehicle frequently enough to cause multiple claims.
The permissive use coverage will only cover a driver one time, for one claim.
Another way to ensure comprehensive insurance coverage when loaning out a vehicle is making certain that the other driver is both licensed and insured.
If the driver has liability insurance that also has permissive use, then their policy will cover any liability claims that may arise.
It is also important to make sure they are licensed.
The vehicle owner can also get a ticket for loaning a vehicle to an unlicensed driver, should the driver be involved in a traffic stop or accident.
Insurance companies understand that sometimes other drivers will be using a vehicle; because of this, they offer permissive use coverage on auto insurance policies.
Although permissive use coverage is available, letting another driver borrow a vehicle should never be taken lightly.
Before loaning a vehicle out, it is important to ask whether the driver is licensed and if they have liability insurance.
If a person refuses to disclose this information, it is not advisable to allow them use of the vehicle.
It is always the owner's responsibility to ensure their car is driven by a licensed and insured driver.
Additionally, as it is the owner who will ultimately be financially responsible for any damages or tickets that result from the other driver, the owner should exercise caution when loaning out their vehicle.