permissive use clause in Arkansas

UPDATED: Oct 14, 2020

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What are the permissive use clauses in Arkansas? The at fault driver was the fiancé of the owner of the ‘at fault’ car in an accident. Driver was only insured if driving her parents vehicles. Owner has a permissive use clause stating that he is the only eligible driver. What are regulations? Is his insurance liable since his fiancé was driving his car? And is the owner liable for making a statement to his own insurance company?”

Asked April 11, 2017

1 Answer

Most states allow auto insurance contracts to permit other persons to drive an insured's car but only with the permission of the insured. This concept is referred to as “permissive use.” The term permissive use" is common in all states including Arkansas.

Arkansas is a No-Fault Auto Insurance state. In a no-fault state, the insured's auto insurance company pays the costs regardless of who is at fault which would include someone's fiance.

The auto insurance policy is a contract. When the insured signs a contract, the insured is bound by its terms. One condition of the agreement may be that the insured is the only person permitted to drive the insured's car. If the insured gave permission for others to drive the insured's car, the insured breached the contract, resulting in its cancellation.

Under an auto insurance policy, for a person to obtain car insurance, the individual must be "eligible." To become "eligible', the driver must have his or her car registered in the driver's state of residence and have a valid driver's license.

Regulations must be prepared to put a law into effect. For instance, a law can be passed giving 16 year olds the right to vote. However, the law is silent in determining the exact details of how to put the law into effect. The regulations are critical in determining the intent of the legislature.

The auto insurance company in a no-fault state is liable to pay for any car damages, as long as the insured gave the fiancé permission to drive the vehicle and the insured's contract contained no exclusions.

A statement must be given to one's auto insurance adjuster to provide one's explanation of how the accident occurred otherwise the insurance adjuster will only consider the opinion of the other person who was involved in the accident.""

Answered April 19, 2017 by vic120

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