Does Your Auto Policy Cover Someone Using Your Car to Run Errands for You?

When you lend your car to a friend or family member to run errands, you might assume that your auto insurance policy will cover any incidents that occur. However, the coverage specifics can vary depending on your policy and the circumstances.

Understanding Permissive Use

Most auto insurance policies include a provision known as “permissive use.” This means that if you permit someone to drive your car, they are typically covered under your policy. However, there are often limitations and conditions attached to this coverage. For instance, some policies may only extend coverage to occasional drivers, while others might have restrictions on who can be considered a permissive user.

Business Use and Exclusions

While permissive use may cover personal errands, the situation becomes more complex if the car is being used for business purposes. If the person borrowing your car is using it to run errands related to a business, such as delivering goods or services, your personal auto insurance policy may not provide coverage. Many personal auto insurance policies exclude coverage for business use, as this type of activity is considered higher risk.

In such cases, you might need a commercial auto insurance policy or a specific endorsement to cover business-related activities. Without this additional coverage, any accidents or damage that occur while the car is being used for business purposes may not be covered, leaving you financially responsible.

Talk With Your Agent

Your agent can provide detailed information about your specific policy and help you understand what is and isn’t covered. Your agent can also advise you on any additional coverage you might need to ensure you are fully protected when lending your car to others.

Contact Us

Contact Liberty Auto Insurance, in San Antonio, TX, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.