What Is Permissive Use Auto Insurance

  • 4 min read
  • May 12, 2021

This articles pertains to Permissive Use of A Business Auto by a Non-Employee When we look at who is an insured we see that if it is just a permissive operator under the BAP and they do not fall under b1 5 they are covered. Not every auto insurance policy will allow for permissive use.


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For those that borrow your car that arent listed as drivers they are generally covered as long as you have given them permission to use your car.

What is permissive use auto insurance. See below for more information. What is Permissive Use. The same goes for the personal auto.

In general a permissive user is defined by auto insurance companies as a person that is not listed on the policy but who operates an insured vehicle with the permission of the owner. Its a common misconception that car insurance follows the driver. In California many auto insurance companies offer what is known as reduced limits for permissive use drivers.

Permissive use means that if you give another driver permission to take your car they will be covered by your cars insurance coverage. You may assume that it is fine for a friend or visiting relative to use your car but are you at risk. However under the Permissive Use Step-Down Provision if an accident occurs then the friend will only be covered for bodily injury liability minimum in California which is 1500030000 and 5000 property.

You may assume that it is fine for a friend or visiting relative to use your car but are you at risk. This is incredibly helpful but it also begs the question by what criteria is someone determined to be a household member. Permissive use is when a person who is not listed on your policy drives your vehicle.

What is Permissive Use. In general these people will be covered as long as you have given them permission to use the vehicle this is called permissive use. Permissive use is when a person who is not listed on your policy drives your vehicle.

To put it simply its when you allow someone who is not listed on your insurance policy or a member of your household to drive your car. Are you still required to. With policies that have these stipulations if the insured were to let another person use their vehicle often times in the event of an accident the coverage will be.

If the policy has no Permissive Use Step-Down Provision then the Permissive Use Driver has the same coverage as a Named Insured Driver. Written by Jessica Sautter Content Writer Educator Reviewed by Chris Harrigan. The permissive user may or may not be covered in the event of a loss depending on the term of the insurance contract and the state laws on permissive driver use.

This is called Permissive Use and all policies have some form of or interpretation of permissive use. In car insurance permissive use refers to the ability of other drivers unlisted on your insurance policy to drive your vehicle. Permissive use auto insurance allows infrequent use of a vehicle fewer than 12 times per year by a driver a permissive user who does not live at the same address as the policyholder.

And what if you have a child who is away at school and isnt driving a vehicle. Permissive use auto insurance is typically included in a standard car insurance policy but double-check your personal policy to confirm you have permissive use coverage before letting a friend or family member borrow your car. All auto insurance carriers have some form of a permissive use policy in place.

This is concept or doctrine is called permissive use Basically permissive use means that a registered owner of an automobile in California is liable per accident regardless of whether they were operating the car in the event that they permissibly lent their car to the person who caused the accident. Not every auto insurance policy will allow for permissive use. Any driver excluded under a persons insurance policy will never be covered in the event an accident occurs.

Your own policy provides the primary coverage not theirs. The question pertains to both personal and business use. Car Insurance Follows the Vehicle.

Permissive use typically refers to someone who has regular access to the insured vehicle is related to the vehicles owner or has driven the car in the past.


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