Most car owners in Las Vegas have, at some point, tossed their keys to a friend or family member. Whether it’s for a quick trip to the store or to help them move, lending your car feels like a simple favor. However, if that person gets into an accident, the situation becomes complicated very quickly. Understanding the concept of permissive use in car insurance is critical for any Nevada vehicle owner. This policy detail determines if your insurance will cover a crash caused by someone else driving your car.
This concept is a frequent source of confusion after a collision. A misunderstanding can lead to denied claims and significant personal liability. The Las Vegas car accident lawyers at ER Injury Attorneys have seen how these insurance disputes can impact a person’s financial future. In this blog, our team explains what permissive use is, how it works in Nevada, and what you need to know before you let someone else get behind the wheel of your vehicle.
Defining Permissive Use in Car Insurance Policies
In simple terms, “permissive use” is exactly what it sounds like. It’s a provision in most auto insurance policies that extends your coverage to a driver who is not listed on your policy but has your permission to use your vehicle.
When you give someone consent to drive your car, your insurance policy generally accepts them as a temporary, covered driver. For example, you let your neighbor borrow your truck to pick up an amplifier from the Guitar Center at Town Square. On the way, they misjudge a turn and cause a collision. Because you gave them explicit permission to drive the truck, your auto insurance policy would typically be the primary coverage for the damages.
It’s important to know that the definition of “permission” can be specific. Some policies may distinguish between someone who has explicit permission (you said, “Yes, you can take my car”) and someone who has implied permission (a family member who has regular access to the keys).
How Nevada Law Handles Permissive Use in Car Insurance
In Nevada, car insurance coverage typically follows the vehicle, not the driver. This means that when you lend your car to someone, you are also lending them your insurance policy. If the person you loaned the car to causes an accident, your insurance policy is considered the primary source of coverage.
This catches many vehicle owners by surprise. They often assume the driver’s insurance would be responsible. But if your friend borrows your car and causes a crash on the I-215 near The District, your insurance company will be the first one on the hook for claims. No matter how robust your friend’s policy is, their insurance would be considered secondary and would only apply after your policy’s limits have been completely exhausted.
Because your policy is primary, any accident caused by a permissive user goes on your insurance record. This could result in your premiums increasing, even if you weren’t in the car. If you have questions about how a claim could affect your rates, our Las Vegas injury lawyers can provide guidance.
Understanding the Limits of Permissive Use in Car Insurance
Permission isn’t always a blank check. A key factor in coverage disputes is the “scope of permission,” which means the borrower must be using the car within the limits you set.
If you give a friend permission to drive your car to a specific location, like a doctor’s appointment at Henderson Hospital, and back, the permission is limited. If that friend decides to take your car on a weekend trip to Reno instead and gets into an accident, your insurance company could argue that the driver was operating outside the scope of permission. In this situation, the insurer might try to deny the claim, arguing that the driver no longer had your consent for that specific use.
These cases are complex. Proving the scope of permission can be difficult and often requires a detailed investigation of the circumstances.
When Does Permissive Use Coverage Not Apply?
While permissive use in car insurance is a broad protection, there are exceptions. There are several common situations and exclusions where your insurance company can, and likely will, deny coverage.
- Named Exclusions: Many policies allow you to “exclude” specific drivers, usually to lower your premium. If you have officially listed your roommate on your policy as an excluded driver, they are never covered when driving your car. Giving them permission in this case is meaningless; the policy exclusion overrides it.
- Unlicensed or Impaired Drivers: Coverage will almost certainly be denied if you knowingly lend your vehicle to someone who does not have a valid driver’s license or someone who is clearly intoxicated. This is considered a negligent act by the owner.
- Regular, Unlisted Drivers: Permissive use is intended for occasional, infrequent use. If someone (like a nanny, a caregiver, or a significant other who lives elsewhere) drives your car every Monday and Wednesday to run errands or go to Downtown Summerlin, they are a regular user. Insurance companies require regular users to be officially named on the policy. If you fail to add them, the insurer can deny a claim, stating that this person was not an “occasional” permissive user.
- Theft or Unauthorized Use: This may seem obvious, but if someone takes your car without your permission, your policy’s permissive use provision does not apply. That incident would be handled under different parts of your policy, such as comprehensive (theft) coverage, and the driver would have no liability coverage from your policy.
What Happens After an Accident with a Permissive User?
When a borrowed car is involved in an accident, the insurance claims process can be a headache. As mentioned, the car owner’s insurance is primary, and the driver’s insurance is secondary.
Let’s use a real-world example. Your friend borrows your SUV and causes a multi-car pileup on the I-15. The total damage and injuries add up to $150,000. Your policy has a bodily injury liability limit of $50,000 per person and $100,000 per accident.
Here’s the likely payout structure:
- Your insurance (primary) pays first, up to its $100,000 accident limit.
- The remaining $50,000 in damages is still owed.
- The driver’s auto insurance (secondary) would then be tapped to cover that remaining $50,000, assuming they have adequate coverage.
If the driver has no insurance, or if the combined policy limits are still not enough to cover all the damages, the injured parties could pursue a lawsuit against both the driver and you, the vehicle owner, to recover the difference. Navigating this stacking of policies is one of the main reasons people contact Las Vegas injury lawyers after a serious crash.
Contact a Trusted Las Vegas Car Accident Lawyer Near Me
Failing to understand the rules of permissive use in car insurance can be a financially devastating oversight for a vehicle owner. If your insurance company denies a claim, you could be held personally responsible for all the property damage, medical bills, and lost wages from the accident. This is why the Las Vegas car accident lawyers at ER Injury Attorneys urge all drivers to be cautious when loaning their car. Before you lend your vehicle, you should always verify that the person has a valid driver’s license and that you trust their ability to drive safely.
It is also a good idea to review your own insurance policy. See what language it uses regarding permissive use and, more importantly, check if you have any “named exclusions” you may have forgotten about. If you are ever injured in an accident involving a borrowed car, the situation can be even more confusing. Our Las Vegas injury lawyers can help you investigate all available insurance policies to ensure you are properly compensated for your medical care and other losses.
The Las Vegas injury lawyers at ER Injury Attorneys are available 24/7 to help you. Call us at 702-878-7878 or connect with us online through LiveChat or secure contact form. Our accomplished Southern Nevada injury lawyers have secured full and fair compensation for injury victims in Las Vegas, Henderson, Summerlin, Pahrump, Boulder City, Laughlin, and beyond. Reach out to us today to get the service and settlement you deserve.