Q. Our insured’s son has moved out of the house and took a car that is titled in his father’s name. The car is insured on a PAP with the father as the named insured. Does the son still have coverage for driving his father’s auto?
A. Yes, the son still has coverage as a permissive user for liability on his father’s policy, just as anyone would have coverage that the father might loan his vehicle to. However, the son no longer has coverage for other vehicles that he might drive such as a rental or any other non-owned auto. If at all possible, it would be best to transfer the title and put the auto in the son’s name and write the son his own PAP.
One other option pertains to an old manual rule from the Texas Automobile Manual, Rule 72:
The Personal Auto Policy “may be used to afford coverage to joint named insureds who are residents of the same household”, whether the automobile is jointly owned by the joint named insureds or not. If the joint named insureds do not jointly own the auto, the PAP may still be used to afford coverage to joint named insureds who are related by blood, marriage or adoption, including a ward or foster child; and who are not residents of the same household” so long as both conditions below are met:
- the auto is owned by one or more of the joint named insureds who are residents of the household address shown in the policy, and
- the joint named insured who is a resident of a different household is the primary operator of the auto.
Note: The name of each named insured (father and son) must be shown in the policy Declarations. The address of the first named insured shall be the address shown in the policy and shall be the address used by the insurer for notice purposes.”