I have a potential client who was given permission by owner to drive car. That person then gave the keys to his friend, who drove and wrecked the car.Can a permissive user give permission to another for purposes of insurance coverage?
Answer: Generally not, but there are some exceptions. See: Automobile Insurance - Permission of Insured or Owner
Samuels v. Amer. Auto Ins. Co., 150 F.2d 221, 223 (10th Cir. 1945): "Where A operates B's auto, with B's consent and for B's purpose, benefit, or advantage, it may be said that B is using the auto, but where A operates B's auto with B's consent solely for A's purposes and in no sense for any purpose, benefit, or advantage of B, it cannot be said that B is using the auto."
7 Am.Jur.2d Auto Ins. §260: General rule that permittee may not allow 3rd party to use car does not apply where: (1) original permittee is riding in car, or (2) 2nd permittee is serving some purpose of original permittee.
Same rule Couch 2d §45:418-423.
Duff v. Alliance Mutual Cas. Co., 296 F.2d 506 (10th Cir. 1961): Samuels followed, even where 1st and 2nd permittees were close friends and had previously borrowed one another's family cars.
Spears v. Preble, 1983 OK 8, 661 P.2d 1337, 1341: Once general permission is given, accident is covered even though particular use not contemplated by owner. Owner's son used car with permission, accident occurred while fleeing burglary.
Anno. 5 A.L.R.2d 600: "Auto Liability. Insured's Permission or Consent to Employee's Use of Car Within Meaning of Omnibus Clause;" 21 ALR4th 1146 "Omnibus Clause as Extending Automobile Liability Coverage to Third Person Using Car With Consent of Permittee of Named Insured.
Note from the above that if the original permittee remains in the car or the mission or reason for the permission given is actually being fostered by the driving of the car by the 2nd permitee, the permission may still exist.
Posted on Mon, December 29, 2014
by Travis Law Office filed under