In California, “permissive use” refers to the situation where an individual who is not listed on an auto insurance policy is allowed to drive a vehicle with the permission of the named insured. This is a crucial concept because it impacts whether or not the driver will be covered under the owner’s auto insurance in the event of an accident. If the driver has permission—either explicitly or impliedly—from the vehicle owner to use the car, they are typically considered a “permissive user” and are usually covered by the owner’s insurance, provided the policy does not contain any exclusions for such use.
The key here is that the permission must be given by the vehicle’s owner. It can be either verbal or implied, such as a family member regularly borrowing the car. However, permission must be reasonable; if the car owner specifically restricts use or forbids it, a driver using the car without consent may not be covered under the owner’s policy. Additionally, certain policies may limit coverage for permissive users, particularly when it comes to excessive or unauthorized use, or if the vehicle is used for commercial purposes, such as transporting goods or passengers for a fee.
While permissive use often provides coverage, it’s not a guarantee that the full extent of the insurance will apply. In some cases, the insurance coverage might be secondary, meaning the driver’s own insurance, if they have it, would be primary. If the permissive user has no insurance or limited coverage, the owner’s insurance might cover the rest. However, if the at-fault driver is a habitual user of the vehicle without the owner’s ongoing consent, the owner’s policy may exclude them entirely. It’s important for both vehicle owners and drivers to fully understand the terms of their insurance policies to avoid gaps in coverage and ensure they are properly protected in the event of an accident.
