Permissive Use: What happens when you let someone drive your car?

Have you ever let a friend or family member borrow your car and wondered if your insurance would still cover you? Most auto insurance policies include something called “permissive use.” This means your insurance can extend to someone else driving your car, as long as you gave them permission. But, as with most things in insurance, it is not as simple as that.

What Does Permissive Use Mean?

Permissive use is pretty straightforward: if you allow someone who isn’t listed on your policy to drive your car, your insurance will usually still protect you. This can be a lifesaver if you need a favor or if someone needs to borrow your car in a pinch.

The part about permissive use that is not straightforward is all the restrictions.

Restrictions and things to watch out for

Before you hand over your keys, keep these common restrictions in mind:

• Frequency of use: If someone borrows your car regularly, your insurer might want them added to your policy. Occasional use is fine, but regular drivers should be listed as drivers on the auto insurance policy if you definitely want your auto insurance policy to cover them.
• Household members: Most companies don’t cover household members under permissive use. If you live together, check your policy to see if they need to be named. Most insurance companies have a new rule: If you let someone drive your car, if they are involved in an insurance claim, if they live with you but are NOT listed as a driver on your auto insurance policy, then they are not covered. Long story short…if a person lives with you, if they will ever drive your vehicle, make sure they are listed as a driver on your auto insurance policy.
• Excluded drivers: Anyone you’ve specifically excluded from your policy is never covered, even if you change your mind and let them drive.
• Business use: Using your car for business, like ridesharing or deliveries, isn’t covered under permissive use. If you let someone drive your car, find out what they are going to do with it!
• Age and license restrictions: The driver must have a valid license and meet any age requirements set by your insurer.
• Duration of the use: If someone is borrowing your vehicle for more than a week or two, then your auto insurance company will have a problem covering an insurance claim if they are not listed as a driver on the policy.
• Intoxication or illegal activity: No coverage applies if the person driving is under the influence or using your car for something illegal.

The Bottom Line

Permissive use can be a helpful feature, but it’s not a free-for-all. Every insurance company has its own rules, so it’s smart to check your policy before letting someone else drive your car. That way, you’ll know exactly what’s covered—and what isn’t.