Do all insurance policies include permissive use car insurance?

Most do, but some policies require all drivers to be named on the policy to get the protection the policy includes. Read your policy details to find out if you have permissive use car insurance. If you are unsure if and when your coverage extends to other drivers, call your auto insurer before loaning out your vehicle.

What is non-permissive use?

Permissive use car insurance assumes that the person behind the wheel of your vehicle has your permission. If your car gets stolen or a disgruntled individual takes your car without your consent, you generally will not be liable for any damages they cause. That means they cannot use your car insurance policy to cover the claim.

Will permissive use car insurance extend to my family members?

If they do not live with you and only borrow your car occasionally, they should generally be covered by your policy’s permissive driver coverage. But if they live at the same address as you (like a newly licensed teen driver), you need to add them to your policy for your coverage to protect them — and to cover expenses for accidents they cause.

How many times can someone use my car before I have to add them as a named driver on my policy?

This will vary from insurer to insurer, although often it is considered permissive use if it is less than a dozen times within a year. If someone uses your car regularly, however, you will probably want to name them in your policy. So, for example, if your mother comes over every week to babysit your children, and frequently drives them to the park in your car, she should probably be a named driver on your policy. When in doubt, read your policy documents or make a quick call to your agent to ensure you don’t get caught short without coverage if the driver has an accident.

Does car insurance follow the car or the driver?

In general, car insurance stays with the car rather than the driver. That means that if someone borrows your car under permissive use, it is your policy rather than theirs that will cover any damage or injuries they cause behind the wheel. One exception to this will be if a driver is specifically excluded from your policy. If that is the case, your coverage likely will not pay for any costs if they are driving when an accident happens.

What is permissive use car insurance?

Written by

Shannon Martin,

Edited by

Amelia Buckley

Published on February 13, 2025 | 4 min read

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Permissive use car insurance is not an insurance policy but an agreement commonly found in most (but not all) insurance policies. Permissive use allows unlisted drivers to have insurance coverage while driving a policyholder’s vehicle. The unlisted driver must have the policyholder’s implied or expressed permission for the coverage to apply. Permissive use can have exceptions, exclusions and costly repercussions, so knowing if your insurance company allows permissive drivers and what it can mean to your policy is essential.

What does it mean to be a listed driver on a car insurance policy?

Listed drivers, also called named drivers or named operators, are the people who are included as authorized drivers of the insured vehicle in the insurance policy. Examples of listed drivers will generally include the people who live in your household, such as your spouse or partner and any children who have their driver’s licenses.

You, as the policyholder, will have given your agent the names of any listed drivers when you signed up for your coverage. Since they are named in the policy, your insurer would have considered factors such as their driving record when determining your premium. For example, if you have teen drivers in your family, you may face a higher rate because teens tend to have more accidents.

Listed drivers are not the same as permissive use drivers. The names give you the clue: listed drivers are listed on the policy; while permissive drivers are not. If someone regularly drives your car, they should generally be listed as a named driver, but consulting your agent is the best way to know for sure who to include in your policy.

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How does permissive use car insurance work?

Permissive use applies when someone has expressed or implied permission to drive the vehicle. Expressed permission is verbal or written, like when people ask, “Can I borrow your truck to pick up furniture?” and you reply, “Yes.”

Implied permission does not need to be spoken out loud and is generally based on past behavior, the relationship between the people involved or the lack of objection from the policyholder. For example, if your roommate sometimes borrows your car, and takes it to pick up some groceries without asking, she is likely to still be covered by permissive use. Or if your uncle grabs your keys because he promised to fill up your gas tank while visiting.

Permissive use can apply to almost anyone. Whether expressed or implied, as a permissive driver (i.e., someone with your permission to borrow your vehicle), they should get the same protections you get from your auto insurance policy. In other words, your auto insurance policy should travel with the car to anyone driving it.

Note that we say should. While most large-scale car insurance providers offer permissive use car insurance, some companies do not. Some companies specifically only cover drivers listed as “active drivers” on the insurance policy. Drivers who are excluded from your policy do not have permissive use. Review your policy details, especially if you get coverage through a smaller insurance carrier, before handing over your keys.

Assuming your policy allows for a permissive driver, you should review the specifics there, too.

For example, your auto insurance policy may only apply to someone who borrows your car 12 or fewer times a year.

Generally, permissive use car insurance is designed for those out-of-the-ordinary instances when another driver borrows your vehicle and gets into an accident. If someone is getting behind the wheel of your vehicle regularly, you usually need to name them as a listed driver on your policy. If the insurance company finds out someone who was not a listed driver was regularly using the vehicle, they could deny coverage in the event of an accident.

Does all of a car insurance policy apply to the permitted driver?

Assuming they are not excluded from your policy, your friend has the benefits of your insurance policy when they borrow your car. Usually, the permissive user limit of liability, collision, comprehensive and any other coverages you have is the same as the limit of coverage you have for yourself.

Say you live in Texas, where the Texas car insurance laws require you to carry at least a minimum of $25,000 property damage liability coverage. If you have $25,000 of property damage liability coverage on your policy, the permissive user limit of liability is also $25,000. So if your friend does $20,000 of damage, your policy should cover it.

In short, if your car insurance policy includes permissive use, the entirety of your policy extends to anyone driving your car (assuming they meet your insurance provider’s permissive driver requirements).

Should someone be a named driver or a permitted driver?

This comes down to how frequently you plan to loan out your keys. Usually, if someone borrows your ride a dozen or fewer times a year, they can be considered a permissive driver. But if your neighbor uses your car weekly to pick your kids and theirs up from soccer practice, you probably need to have them as a listed driver.

If you still feel unsure about when someone should be listed as a named driver on your policy, call your auto insurance provider and ask. Talking through the specifics of your situation helps ensure you have the right coverage in place — and avoid a surprise out-of-pocket expense if your friend wrecks your car.

Frequently asked questions

Most do, but some policies require all drivers to be named on the policy to get the protection the policy includes. Read your policy details to find out if you have permissive use car insurance. If you are unsure if and when your coverage extends to other drivers, call your auto insurer before loaning out your vehicle.
Permissive use car insurance assumes that the person behind the wheel of your vehicle has your permission. If your car gets stolen or a disgruntled individual takes your car without your consent, you generally will not be liable for any damages they cause. That means they cannot use your car insurance policy to cover the claim.
If they do not live with you and only borrow your car occasionally, they should generally be covered by your policy’s permissive driver coverage. But if they live at the same address as you (like a newly licensed teen driver), you need to add them to your policy for your coverage to protect them — and to cover expenses for accidents they cause.
This will vary from insurer to insurer, although often it is considered permissive use if it is less than a dozen times within a year. If someone uses your car regularly, however, you will probably want to name them in your policy. So, for example, if your mother comes over every week to babysit your children, and frequently drives them to the park in your car, she should probably be a named driver on your policy. When in doubt, read your policy documents or make a quick call to your agent to ensure you don’t get caught short without coverage if the driver has an accident.
In general, car insurance stays with the car rather than the driver. That means that if someone borrows your car under permissive use, it is your policy rather than theirs that will cover any damage or injuries they cause behind the wheel. One exception to this will be if a driver is specifically excluded from your policy. If that is the case, your coverage likely will not pay for any costs if they are driving when an accident happens.