Life happens. Sometimes your vehicle isn’t available, but you have an errand that can’t wait. You borrow a friend’s car. Or maybe, you’re the one loaning out your car to someone who needs the help. Or loaning it to your teenager. If an accident happens, you may wonder if it’s still possible to make a claim on the owner’s insurance. In Texas, the answer is often yes. This is called permissive use. In short, it’s the right of an insured vehicle owner to give permission to a non-insured driver to use their car. but only temporarily and in specific circumstances. Trying to skirt the limitations of permissive use can land you in trouble and are almost certain to hurt your premiums should an accident occur.
Today we’ll take a close look at permissive use: what it is, who it applies to, when it applies, and when it doesn’t. If you aren’t sure how your Texas auto insurance policy handles permissive use, contact your carrier or work with a trusted auto insurance brokerage like Arthur Blake Insurance in Plano, TX to make certain that your policy covers your needs.
What Is Permissive Use?
Permissive use means the owner of a vehicle gives someone else permission to drive it.
For example, if a parent lets their licensed teenager borrow their car to run an errand and that teenager gets into an accident, the car owner’s auto insurance will generally provide coverage, subject to the policy’s terms and limits. Texas generally requires auto policies to provide coverage for people who use a covered vehicle with the owner’s permission.
Does Insurance Follow the Car or the Driver?
In most situations, Texas auto insurance follows the vehicle, not the driver. That means if you borrow a friend or family member’s insured car with permission, their policy may cover an accident you cause. The coverage available depends on the policy and the type of loss.
For example:
- Liability coverage may help pay for injuries or property damage you cause to others.
- Collision coverage, if included on the policy, may help pay for damage to the insured vehicle.
- Coverage is generally subject to the policy’s limits and exclusions.
When Might Permissive Use Not Apply?
While Texas has strong permissive use standards, permission doesn’t guarantee coverage in every situation. Problems can arise if:
- You take the vehicle without the owner’s permission.
- You are specifically listed as an excluded driver.
- You use the vehicle for a purpose excluded by the policy, such as certain business or delivery activities.
- You regularly drive the vehicle but aren’t properly disclosed to the insurance company.
Texas Department of Insurance guidance notes that policyholders should review their specific policy to understand who is covered and whether anyone is excluded. In general, if someone is using your car regularly, you should add them to your policy and not rely on permissive use as a protection.
What About Family Members?
If you live with your parents, spouse, or another family member and regularly drive their vehicle, don’t assume occasional permissive use is enough. It’s a good idea to tell your insurance agent about regular drivers in the household. Depending on the policy, the driver may need to be added to the policy, and the insurer may adjust the premium.
The Bottom Line
Permissive use can provide valuable protection when you borrow someone else’s vehicle in Texas. The key is having the owner’s permission and understanding the specific terms of the auto policy. If you aren’t sure whether a family member, friend, or other driver is covered, check with your insurance agent before handing over the keys. A quick policy review can help prevent an unpleasant surprise after an accident.
Need help understanding your Texas auto insurance coverage? Arthur Blake Insurance can help you review your options and make sure your coverage fits your needs.