Does a non-resident adult family member need to be listed as a driver in order to be covered for occasional use? Alfred Metz asked 1 year ago
Does a non-resident adult family member need to be listed as a driver in order to be covered for occasional use?

I live in New Jersey, and have a standard auto policy with Progressive currently covering me, my wife, my adult daughter (who lives with us), and my adult son, who lives in (and has his permanent address in) New York. My son comes to New Jersey infrequently and not regularly — perhaps for a weekend once every two months — and during those visits may drive one of our cars for errands or pleasure, usually no more than 25 miles. He has a New York driver’s license evidencing his permanent residence, not NJ. His IRS records etc. list his New York address. He files taxes separately.

Do we need to continue to list him as a driver, or would he be covered as any other permissive driver would under the Standard Policy in NJ? The insurance company has told me different things, ranging from

— it would be “nice” to have him listed, but I don’t see in the Standard Policy that he has to be; to

— he must be listed under their internal policies, but I’ve gone through the contractual provisions and their “internal policies” don’t appear in the contract.

Obviously, the company has an incentive to collect a premium for him, but I do not see that he needs to be listed in light of the facts that: (1) he is not a member of our household; (2) he does not reside with us, or even in our state; (3) his visits and use of the car are irregular, infrequent, and minimal; and (4) his use is clearly permissive.

Does he need to be a listed driver (which costs about $500/yr)? It seems to me that he is squarely within the definition of an insured person as:

  1. “Insured person” means:a. you, a relative, or a rated resident with respect to an accident arising out of the ownership, maintenance or use of an auto or a trailer;b. any person with respect to an accident arising out of that person’s use of a covered auto with the permission of you, a relative, or a rated resident

Thanks.

1 Answers
Answer for Does a non-resident adult family member need to be listed as a driver in order to be covered for occasional use? United Policyholders Staff answered 11 months ago

Dear Alfred,

He is a permissive user, and if he were to get into an accident while driving your car, your insurer should cover it. However, if there were a second accident, and the insurer discovers he’s routinely and frequently driving, they might deny that claim. Our understanding is that in New York, a permissive driver vs driver is defined as anyone who uses the car more than one time a month for two consecutive months. Someone who’s a permissive driver/not on the insurance can be covered by an accident one time in three months. But if your son had a second one within a three month period then its likely going to be a problem. Please verify this with the NYDFS: Auto Owners Resource Center.

Best,

Team UP