Bailment Issue as Pertains to Permissive Use and Insurance Claims Explained
Permissive use does mean that anyone driving your vehicle with your permission, other than an excluded driver on your insurance policy, is covered by your policy. An issue that would allow you, as the policy holder and vehicle owner, to get out of paying your deductible whether your driver was at fault or not is BAILMENT. The bailment issue arises when the driver of your vehicle is it driving it solely for his or her benefit.
For example, if the driver asks you if he may borrow your vehicle to go to the store to pick up some groceries, none of which are for you, bailment exists. If your driver is runs a red light and causes property damage and personal injury to others, your own insurance policy’s liability coverage will be responsible. If you can prove to your insurance carrier that the driver of your vehicle was driving only for their benefit, then your driver’s insurance company should pay for the damages to your vehicle, including your deductible.This article was approved for informational purposes and is not intended to take the place of competent local legal counsel.
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