Here is a transcript of the video (disclaimer, I am a Utah attorney and this video pertains to Utah law):
Hello, I’m Nelson Abbott with Abbott Law Firm. And this morning I got asked a question about permissive drivers. In other words, somebody owns a vehicle, but they allow somebody else who’s not on their insurance policy to drive their vehicle. Is there any coverage in this situation, number one? And number two, if there is coverage, which insurance company covers it? Is it the person that owns the vehicle or the person who’s borrowing the vehicle?
The answer to this isn’t entirely easy, but the basic general answer is that if somebody gives permission to somebody else to use their vehicle, then the person who owns the vehicle, or the insurance on the vehicle that’s being borrowed, is the primary insurance. And that insurance has to pay for at least any PIP coverage, liability coverage on that vehicle. It’s a little more complicated when we get down to collision, or towing, or that kind of thing.
There are some complicating factors here. For example, if the permissive user is a member of the household and is named as an excluded driver in the policy, then there is no coverage, so you’ve got to be careful about that. If you’ve got a child or something, you know, a 16, 17, 18-year-old, who’s living in the household and is excluded as a driver, then that person will not have coverage.
To make that exclusion successfully under the law, the insurance company does have to jump through some hoops, so it’s not as straightforward as just putting a clause in the insurance policy saying anybody that lives in the household is automatically excluded. There is a possibility that the person who is borrowing the vehicle may have some sort of secondary coverage on that vehicle as well. So that’s something that always needs to be looked at.
I hope this answers at least some of your questions and maybe clarifies that issue that comes up frequently. Nelson Abbott, Abbott Law Firm. And if you have any questions, just comment, or send us a message, or get on our website and we’ll do a chat with you. Thanks. Have a good day.