by robbiemetz » Thu May 06, 2010 01:14 pm
My granddaughter lives in GA. her Mom lives in SC and is letting her drive a vehicle she owns to school the kid is 18 now the car had SC plates the kid has GA drivers lic. If the kid is not on any policy and she is in a accident will it cover her just by having permission to drive?
Posted: Thu May 06, 2010 01:29 pm Post Subject:
With permissive use, it should (technically). However, the mother should add her to the policy. I'm not sure what the company's policy is with an out of state vehicle. Probably would be a good idea to look into this.
Posted: Thu May 06, 2010 01:50 pm Post Subject:
I'm not sure what the company's policy is with an out of state vehicle. Probably would be a good idea to look into this.
Most policies permit a listed driver to take their vehicle to college out of state.
As Trench stated, it would be best to have her listed on the policy as an additional driver, especially if this is going to be long term use of the vehicle, not an occasional trip to the supermarket.
Will it cost more money? Of course! As it should.
Posted: Thu May 06, 2010 07:09 pm Post Subject:
depends on the policy wording on how they define an insured and permissive use. read the policy carefully. some companies will allow it, most companies will not. Also, not all policies allow for permissive use these days. Many "low cost" policies state specifically that the named insured must be the driver to cover losses. Unlisted drivers draw a big red flag to adjusters and the claim will be investigated as to why they aren't listed. Usually its becuase someone is hiding a young driver to avoid the additional premium.
1. they could consider it material misrepresenation and deny the claim based on the mother trying to escape the higher premium, borderline fraud. Permissive use is for occasional use to a friend or family member not living in the household nor child at school / college, especially ones that have thier on set of keys and regularly drive the insured's vehicle.
2. if there is a claim, they may deduct the difference in the premium that should have been charged for her to be on the policy...usually going back to most recent renewal...this difference would come out of the collision settlement. they would most likely have to pay the liabilty damages.
3. they may considered it permissive use, but very doubtful. if she has a set of keys and drives it regularly, obviously it wouldnt fall under occasional usage and she would be required to be listed on the policy. most insurance applications required all licensed drivers in the household or regular drivers to be listed on the application or accounted for, otherwise it's material misrepresenation and justification to deny the claim.
bottom line, better to be safe than sorry, add her to the policy. if she is listed on the policy and attending college, the out of state issue should be ok. a good question to ask the agent, as he will know his companies products.
Posted: Sat May 08, 2010 10:14 am Post Subject:
Most insurance companies ask in the application for insurance if there are any other licensed drivers in the household. They also ask if there are any children 14 years of age or older. Policy language may exclude coverage for residents of the household who are not named on the policy (covers roommates, children).
Failure to inform the insurance company when it asks such questions is misrepresentation (rarely fraud). And misrepresentation is sufficient to allow the insurance company to rescind coverage -- to VOID the policy from the beginning -- effectively leaving the vehicle uninsured at the time of a collision involving a person who should have been named on the policy (and the owner/driver in violation of state law in many states which can result in loss of one's driver license).
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