What Is Permissive Use, and Who Does It Cover?
If someone who is driving your car gets into an accident, they will not be covered under your insurance policy without permissive use.
Written by Bellina Gaskey
Reviewed by Kathleen Flear
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Permissive use refers to a driver who is covered by name on a car insurance policy. If someone who is driving your car isn’t listed or included in a category of coverage on your policy, they will not be covered if they get into an accident.
It may seem like letting someone drive your car means they will be covered in the event of an accident, especially if they have their own insurance, but this may not be the case.
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What is permissive use?
When someone else uses your car, that use would either be permissive or non-permissive. In other words, either you permitted them to drive your car, or you did not permit them to drive your car.
This means that if someone you don’t know steals your car and gets into an accident, they aren’t covered by your insurance plan. If that person has their own insurance coverage, then in most cases, that will cover them.
If that person doesn’t have insurance, then you’ll likely have to file a claim to cover any harm done to your car.
How does someone get listed on a policy?
You’re allowed to list other individuals on your policy if you know that they will be using your car around 12 times per year or less. Your policy may also list broader categories that include your family or people who live in your home.
To get someone else — either one person or a group of people — listed on your policy, start by checking your policy. Check the phrasing for more details on who is considered family, a relative, a household member, etc.
Once you’re ready to add a permitted user to your policy, get in touch with your insurance agent to have the change finalized.
Key Takeaway If you need to add a driver to your policy, make sure you get in contact with your insurance agent.
Are there any exceptions to permissive use coverage?
The most common exception to permissive use involves drivers with either no license or little to no driving experience. Listing a driver on your policy doesn’t always mean they will be covered.
If it turns out that someone you’ve allowed to drive your car isn’t legally allowed to drive and they get into an accident, your insurance may not cover it. And if a driver has a lot less experience than other people on your policy, you may have to pay out of pocket if they get into a wreck.
One other situation to think about is business use, which permissive use does not cover. Let’s say you add someone to your policy and lend them your car and then they get into an accident while doing something for their job. In that case, you might have to pay out of pocket.
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Does permissive use make your insurance rate go up?
Chances are, yes. In general, your premium will go up a little if you add a driver to your policy. Every driver you add to your policy makes things riskier in the eyes of an insurance company.
The good news is that your premium will go down once that driver is off your policy.
Be sure to check your specific policy to find details about how permissive use could affect your rates.
Key Takeaway Adding another driver to your insurance policy will likely result in your insurance rates going up.
Getting the best rates on your car insurance
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FAQs
How does permissive use work?
Permissive use works by giving you the option to list other drivers on your policy who will only use your car occasionally. If they get into an accident, then your insurance may cover them.
What happens if you crash a friend's car?
If you crash a friend’s car but are not listed under permissive use, your friend may have to pay for damages out of pocket. If you are listed on their policy under permissive use, then their insurance may cover it.
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