Auto Insurance Claims: Permissive use, state insurance commissioner, state dmv

Question
My son was given permission to drive a friends car. His driver's license was suspended in Ohio. He showed proof of insurance when he was stopped. The State DMV now wants him to prove that he would have been covered since he was under a suspension. The insurance company does not want to do this based on permissive use? What are his options now?

Answer
Hi Bob,

First off, the status of your son’s license should NOT affect his status as an insured under his or your or the car owner’s policy (unless in a rare case the permissive user has to be licensed according to the policy).

Your son has three options.  First is to go through his own policy, or if he does not have one and he is a member of your household, then he will be insured under YOUR auto policy.  So try those first.  

Second, he can write a certified letter to both the insurance company and to the state DMV and ask for the insurance company to admit or deny that he was a permissive user of the vehicle, and hence insured under the policy.  If they deny, then they are to send him a copy of the applicable parts of the policy.  Look for a requirement for a valid license or a definition exception to the “permissive user” provision—hint: it might be under a definition of “insured”.  If there is not a specific exception, then HE IS A PERMISSIVE USER, and hence insured.

Third if that does not produce satisfactory results, then he can call the state insurance commissioner http://www.settlementcentral.com/links.php  and get a copy of the complaint form.  Fill it out and send it in ASAP via certified mail, with a copy to the state DMV.  

Now, here is the strange thing about permissive user status: it is up to each insurance company to put in there any kind of definition or exception that they want since no insurance commissioner is going to balk.  Hence, they might have inserted something that limits permissive user status to those who are licensed to drive at the time.  So, since permissive use is a technical matter, it will be governed by the insurance policy.  

I trust that my efforts here have been of value to you and your son, and hence I respectfully request that you find the FEEDBACK FORUM on this website and leave some feedback for me.

Best wishes,

Dr. Settlement, J.D. (Juris Doctor)
www.settlementcentral.com