Glossary

Permissive use

Coverage for someone who drives your car with your permission but is not listed on your policy, typically on an occasional basis.

Also called: permissive user, permissive driver, borrowed car coverage

Permissive use refers to coverage for a person who drives your car with your permission, spoken or implied, even though they are not named on your policy. Under a standard personal auto policy, an insured for liability purposes includes any person using your covered car, so a friend who borrows it for an errand is usually covered, and your collision coverage pays for damage to your car.

Because insurance generally follows the car, your policy pays first when someone else crashes it. Example: a neighbor borrows your car and causes $40,000 in injuries. Your liability coverage pays first; if your limit is $25,000, the neighbor's own auto policy may pay the remaining $15,000 as excess coverage (hypothetical figures). The claim goes on your insurance record and can affect your premium.

Permissive use has limits. It is meant for occasional drivers: people who live with you or drive your car regularly generally must be listed. It does not apply to an excluded driver named on the policy or to someone who takes the car without permission, and it may not apply at all under named-driver policies. Some policies reduce coverage for permissive drivers to state minimum limits. See accidents while driving someone else's car.

Last reviewed October 4, 2026

In the index now

Related terms

Insured Any person a policy protects, including the named insured, household relatives and often permitted drivers, depending on the coverage. Named driver policy A car insurance policy that covers only the drivers specifically listed on it, rather than anyone who borrows the car with permission. Excluded driver A specific person listed on a policy as not covered to drive the insured cars, often used to keep a high-risk household member from raising premiums. Household member A person who lives in your home, usually a relative, whom auto policies often cover automatically and may require you to list. Primary insurance The policy that must pay first when more than one could cover the same loss; other policies pay only after its limits are used up.

Related guides

Accidents while driving someone else's car Why the owner's insurance usually pays first when you crash a borrowed car, when your own policy steps in, and the exclusions that can leave no coverage. Car insurance for college students Staying on a parent's policy, away-at-school and good student discounts, what changes when the car goes to campus, and when a student needs a separate policy. Does car insurance follow the car or the driver? In most cases the car owner's insurance pays first and the driver's own policy is backup. How that works for borrowed cars, rentals, car sharing and injuries. Graduated driver licensing and insurance How the permit, intermediate and full-license stages of graduated licensing affect a teen's car insurance, and what GDL research means for premiums. Insurance decisions for aging drivers and their families The insurance choices families face as an older relative drives less or stops: who to list, excluding a driver, caregivers, storing or selling the car. Insuring a car that is not in your name Why insurers want the owner on the policy, how to insure a car titled to a parent, partner or friend, and when a non-owner policy fits better.