Will insurance pay for damage from someone who only has a permit but was not in compliance with the permit?

Question

My 17 year old daughter has a temporary permit in Texas to drive but my wife has to be in the car with her. My daughter rear ended a van and my wife was not in the car with her. The damages are approx. $3000.00. Will my insurance pay this or will I have to pay out of pocket? No police report was filed.

Answer 1

No they will not cover this. An automobile policy will cover anyone who has a valid driver's license. A permit is a valid driver's license as long as all the conditions of the permit are being met. Even if one of those conditions are in breach, she no longer has a valid license, therefore you are in breach of your policy because you allowed someone who did not have a valid driver's license to operate the vehicle.  

Answer 2

Well, most of the time they're going to cover it, unless you're with Progressive or a similar company that requires permitted drivers to be listed.

But, they're probably going to cancel your policy afterwards.

Answer 3

I think you are stuck on this one Dad.Usually insurance will only

cover a driver is a/ they are permitted to drive and it is on the policy and/or they are 'authorized and qualified to drive' which your daughter isn't. They may pay but they will come after your daughter.