Permissive use car insurance: What is it, and is it standard on all policies?

What is permissive use car insurance?

While you can’t get a permissive use car insurance policy, it is included with a standard policy. Most insurers include a clause that allows you to permit someone else to drive your car occasionally.

“[If] you give someone permission to drive your vehicle under a temporary term, they are covered up to policy limits," says Zack Pope agency manager at David Pope Insurance.

Permissive use means that infrequent drivers of your vehicle get the same insurance coverage as listed drivers. However, insurers limit the benefit to people who drive your car less than 12 times a year. If someone drives your car more frequently, they need to be listed on your policy.

It's important to note that including permissive use in your auto insurance policy isn’t mandatory. Although most major insurers allow permissive use, smaller insurers may not. To be sure if your policy includes permissive use, read your policy and speak with your agent.

Express vs. implied permission

There are two types of permissive use of your vehicle that are covered by your insurance:

Express permission means you have given verbal or written permission for the person to drive your car. That could be face-to-face, over the phone or even via a text message.

Example: Gene asks his neighbor, Layla, to go pick up his son from school because he's stuck at home waiting for a delivery. He calls Layla and asks her, and adds, "you can take my car." He then gives Layla the keys. He has given her express permission to use his car.

Implied permission means that while you haven't given express permission, it is implied that the person is permitted to use your car.

Example: Gene and Layla are making a joint trip to drop off some donations; the items are loaded in Gene's car, and Layla drives to the donation center. Even though Gene doesn't say, "You can drive my car to drop these things off," he has given her implied permission by handing her the keys.

Who qualifies as a permissive driver on car insurance?

A permissive driver is one who occasionally drives your car with your permission. Most insurers count occasional use as less than 12 times a year. Permissive drivers can be friends or relatives not living in your household.

"Typically, it is someone who does not live in the household and who does not drive the vehicle(s) frequently. Occasionally, companies consider someone who lives with you and has their own insurance a permissive driver, but that is becoming more rare," Pope says.

For example, if you ask a neighbor to pick up your kids from school occasionally using your car, that would count as permissive use. Loaning your vehicle to a friend visiting from out of town for the weekend would also be permissive use.

Who is not covered under permissive use?

Permissive use doesn’t cover everyone who may drive your vehicle. Your insurance policy should list people who often drive your car or are in your household.

For example, your spouse has regular access to your car and needs to be listed on your policy. Or, you may let a neighbor use your car every week for groceries. They should be listed on your insurance policy because they frequently use your vehicle.

Permissive use also won’t cover anyone borrowing your car for business purposes. For example, if your neighbor borrows your car to deliver pizza, your insurance may not cover an accident.

Additionally, permissive use doesn't cover anyone who takes your car without permission, commits a crime or is an excluded driver. So, for example, if someone steals your car, your insurance doesn’t extend to the thief.

How does permissive use car insurance work?

Permissive use car insurance extends the same coverages on your policy to drivers you allow to use your car. Anyone driving your car with your permission, either explicit or implicit, will be covered as if you were driving.

Example: Gene loans his neighbor, Layla, his car for a road trip. Layla is distracted in traffic and rear-ends a car. Gene files a claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing., and his liability insurance covers the damage to the other vehicle, and his collision insurance covers the damage to his car.

Important to know: If someone driving your car with your permission causes an accident, your insurance may go up as a result, even though you weren't driving. Choose permissive drivers wisely.

Do all insurance companies include permissive use for car insurance?

Permissive use is generally considered to be a standard feature on a car insurance policy but is not guaranteed. Most larger insurers allow permissive use, but some smaller insurers may not. Additionally, specialized coverage, such as for high-risk drivers, may not include permissive use.

It’s important not to assume your policy includes permissive use. Be sure to read your policy carefully before allowing others to borrow your car. If you still have questions, reach out to your insurer.

Permissive use vs. listed driver

There are some significant differences between permissive use and listed drivers. In general, permissive use drivers rarely drive your vehicle, while listed drivers are in your household or regularly use your car.

This table compares permissive use and listed drivers in various categories.

	Permissive use	Listed driver
Driving frequency	Less than 12 times a year	Unlimited
Coverage	Same as policy	Same as policy
Impact on rates	Doesn’t affect rates	Affects rates
Length of coverage	Temporary	Policy term
Process to allow driving	Policyholder permission	Must add the driver to the policy
Impact of an at-fault accident	Will affect your rates	Will affect your rates
Impact of a ticket	Won’t affect your rates	Will affect your rates

FAQ: Permissive use car insurance

How often can someone borrow my car under permissive use?

Permissive use is strictly for occasional use. Most insurers allow permissive use up to 12 times a year. If someone drives your car often, consider adding them to your policy to ensure coverage.

Are all coverages extended to permissive drivers?

All your insurance coverages, limits, and deductibles typically extend to a permissive driver. However, there may be variations, so read your policy or contact your insurer to make sure.