Permissive Driver Issue

Permissive Driver Issue

QUESTION:

                We have a situation where a 16-year-old boy was driving his 16-year-old girlfriend’s vehicle with her permission. They were at school and he asked to borrow it to run to the gas station for a soda. She told him that as long as he put gasoline in it, he could. As he was leaving the gas station, he ran a red light and collided with out insured. He was deemed 100% at fault.

                The boyfriend driver has driven that particular vehicle on a few occasions (approximately 4-5 times). When he was driving it one time, the girlfriend’s mother saw him and told him he was not to be driving the vehicle. On another occasion, both the girlfriend’s mother and father told both the kids that the boyfriend was not to be driving the vehicle. This vehicle is exclusively used by the girlfriend, but registered under the parents’ name.

                Again, on this particular day, the girlfriend gave the keys to her boyfriend and told him he could borrow her vehicle. The insurance carrier for the owner of the vehicle (girlfriend’s parents) has denied the claim due to non-permissive users. The insurance carrier for the boyfriend (driver) has also denied the claim to the innocent third party insured citing the same exclusion.

                My question is, since the girlfriend is considered an insured under her father’s policy (family member) and she gave permission to the boyfriend to drive the vehicle, would he have a reasonable belief that he could drive it, even when the girlfriend’s mom and dad told him he was not to drive it?

ANSWER:

Even though the girl gave her boyfriend permission to drive the vehicle, he had been told on two separate occasions by the owners/parents that he was not to drive the vehicle; therefore, he had no reasonable belief that he could drive the vehicle. The owner of the vehicle gets to determine who has permission to drive it, even though the normal user of the vehicle may be someone else. In this situation it’s quite clear that the parents did not want him driving the vehicle. They made that clear on more than one occasion. Therefore, there is no coverage for the loss.

Better Ways to Spend Your Tax Refund

Instead of spending your refund check on "gadgets or getaways", here are four better ways to spend it according to Yahoo!.

Rebalance your portfolio

With the stock market hovering near five-year highs, advisers normally would recommend investors rebalance their portfolios by selling stocks and using the proceeds to buy bonds or whatever assets they need to get back to their target allocations. But some investors might be able to rebalance without selling their stocks — if they use their refund money to build up their exposure in those areas, says Steve Billimack, managing director at the HighTower Chicago Advisory Group. “And it’s a very tax efficient way to do it because they’re not selling anything to rebalance,” says Billimack. (Investors typically need to pay taxes when they sell assets that have risen in value.)

Prepay your bills

Even if you’re not living paycheck to paycheck and could afford to spend your refund on a new iPad without falling behind on your bills, there may be better uses for the cash. Though it’s not nearly as exciting, one can use the money to pay off future bills, says Jon Beyrer, a financial planner in San Diego with Blankinship & Foster. “Why not use this money to put yourself ahead of the game?” says Beyrer. Prepay six months of car insurance bills or car loan payments. Write the phone company a large check, or save the money for the home insurance bill you know is coming up in a few months, he says. But don’t forget to check monthly statements to be sure you aren’t paying for something you didn’t request, experts say.

Make home improvements

“If you’re going to spend it, take a look at your house,” says Mike Blehar, managing director and principal at Fort Pitt Capital Group. “What have you been putting off?” If your furnace is on its last leg, now may be your chance to replace it, he says. Have you wanted to install new windows? Using the money on your home could lift your property value and prevent future damage, advisers say. People who make energy-efficient improvements might also qualify for a residential energy tax credits expiring at the end of this year, says Blehar. To get the maximum credit of $500, taxpayers need to make $5,000 in qualifying improvements to their stoves, heating or air conditioning systems, insulation, roofs, water heaters and windows and doors. Learn more here: http://www.energystar.gov/index.cfm?c=tax_credits.tx_index

Buy a car

If the list of needed car repairs is piling up, some advisers say it might be best to put your check toward a new ride. A $3,000 refund can cover the typical 10% down payment needed on a $30,000 loan for a new car and the 20% down payment needed on a $15,000 used car. It also helps that banks are currently offering record-low rates on car loans, says Greg McBride, a senior analyst at Bankrate.com. The average rate on a five-year loan is hovering near 4% for a 5-year loan on a new car and 4.6% for a 4-year loan on a used car, according to Bankrate.com. And some banks and credit unions will offer rates below 2.5% on both new and used cars, he says. People with existing car loans may also have a greater shot at refinancing to get a lower rate if they use some of their refund cash to reduce the size of their loan, says Beyrer.

Snow Plow Insurance

Here is a little tidbit on what Progressive has to say when it comes to individuals in the snow plowing business and their insurance...

Snow Plow Insurance

If you're in the snow removal business, you rely on your snow plow insurance to provide protection for both your vehicles and business.

Snow plow insurance can include a business owner's policy, Worker's Compensation insurance and commercial truck insurance that provides liability protection against exposure that can result in costly lawsuits.

Who Needs Snow Plow Insurance?

Snow plow insurance is usually required by law or your snow removal contract. if you earn income by providing snow plowing services to either residential or commercial properties. Make sure you're familiar with the local rules and regulations where you work.

Business Owners Insurance

Business Owners Insurance (BOP) could provide various protections for snow plowing businesses including General Liability, and loss of income coverage. 

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