Relative As an Insured?

Our insured's son has returned from Iraq and he will be stationed in Texas . The son, with his parents' permission, has rented a vehicle in his name in Maryland (where parents live) for twelve days. The son does not own a vehicle and does not have auto insurance.

Does the son have coverage under the parent's auto policy for liability and physical damage for the rental car? The parents have full coverage on their vehicles. The rental company did not call to verify coverage on the vehicle. Our insureds gave their policy information to the company.

Maryland Subscriber

In order to be considered an insured, the family member has to be a resident of the household. So the question becomes where is the son's residence? Does he have his own home or apartment anywhere? Where does he get his mail? While he may consider the parent's house "home", that doesn't make him a resident. A twelve-day visit between orders doesn't establish a residence for the son. Even though the parents gave permission for him to provide their insurance information, they are not the owners of the vehicle, so the policy does not provide coverage since he is not a resident relative. If the vehicle is rented solely in the son's name, there is no coverage.

 

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