What the heck is "permissive driver limitation"?

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Category: Blog

WHAT THE HECK IS “PERMISSIVE DRIVER LIMITATION”?

 

You may want to think twice the next time your neighbor or
your daughter’s friend asks to borrow your vehicle. After reading this, you might not hand your keys over so quickly. 

 

People not listed on your policy will probably NOT
be covered under the same liability limits you have on your policy. Most companies
have this limitation since they can’t determine if your neighbor has a couple
DUI’s under their belt or if your daughter’s friend has had some reckless
driving mishaps. If they insured every random person for the limits on your
policy, it would open them up to a lot of unnecessary claims and lawsuits.

“Permissive driver
limitation” decreases your limits of liability to 15/30/5
($15,000 per person, $30,000 per accident,
and $5,000 property damage for each accident)
if a person that is not
specifically listed on your insurance policy drives your vehicle. These limits
are in accordance with the Financial
Responsibility Law of the State of California.
These limits cover the bare minimum. If someone damages or totals another vehicle while they are driving your car, then your
insurance is only liable for $5,000 of the amount of damages. (Imagine if it was a Ferrari!) OUCH! If someone is
hospitalized, those hospital bills can quickly exceed $15,000. Double OUCH! If
there were a few people hospitalized or even just injured, it could add up to
way over the maximum of $30,000 per accident quite rapidly. Triple OUCH! You could get
pulled into an ugly lawsuit, and nobody wants to deal with that (except the
attorneys).

Please give Alandale Insurance a call today at (562)
493-3521 to discuss various situations regarding your specific auto insurance policy. Our trusted, experienced agents can help you make sure you have
the coverage you need to protect you in the event of a loss.

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