Last Updated on December 30, 2025

Many drivers assume their auto insurance covers any accident involving their car. In reality, coverage depends on who was driving, whether you gave permission, how often that person drives your vehicle, and what your policy says about “regular use” and household drivers.

Permissive use is the insurance concept that may extend coverage when you lend your car to someone who isn’t listed on your policy—like a friend, neighbor, or relative. But permissive use is not unlimited, and it’s not the right solution for people who drive your car frequently or live with you.

Key Takeaways

• Permissive use may extend coverage when you lend your car to someone who isn’t listed on your policy, but it’s typically intended for occasional—not regular—drivers.
• Household members (including many roommates and partners, depending on the insurer) usually must be disclosed and may need to be listed on the policy.
• Coverage can be limited or denied if the driver is unlicensed, excluded, considered a regular user, or using the vehicle for business/delivery/rideshare purposes.
• A permissive-use accident can still impact your rates because the claim is tied to your vehicle and policy.

Does Car Insurance Follow the Car or the Driver?

In many situations, auto insurance follows the car—meaning your policy may be the primary coverage when someone else drives your vehicle with your permission. That’s the basic idea behind permissive use.

However, there are important exceptions. Coverage can be reduced or denied when the driver is excluded, the use is considered “regular” or “business use,” the driver is unlicensed, or the driver lives in your household but wasn’t properly listed.

Who Must Be Listed on Your Policy?

Insurers usually want all licensed drivers in your household to be disclosed—whether they drive every day or only occasionally. This is why policies often ask about spouses, partners, teens, and other residents. (Related: Do I have to add non-driving family members to my car insurance policy?)

A “household member” often includes people who live at your address and have access to your vehicle. That can be broader than many people expect. If you share a home with someone who might drive your car—even rarely—ask your insurer how they want that person handled.

Roommates are a common gray area. Some insurers treat any licensed household resident as a driver who must be disclosed, even if you aren’t related. If you live with someone and share vehicles (or keys), it may be safer to properly list them or keep separate policies. Learn more here: Can you put a roommate on your auto insurance policy?

And if you’re married or combining households, you’ll usually want to ask about a single policy vs. separate policies. (See: Is auto insurance cheaper if you’re married?)

What Is Permissive Use Auto Insurance?

Permissive use means you gave someone permission to drive your vehicle, and your policy may extend coverage to that person even though they are not a listed driver.

Permissive use is typically meant for occasional borrowing—like a friend driving your car once in a while. It’s generally not intended for someone who:

• Lives at your address
• Uses your car weekly (or has routine access to the keys)
• Is effectively a regular driver of the vehicle

Important: There’s no universal rule like “12 trips per year.” Each insurer defines “occasional” vs. “regular” differently, and the wording in your policy matters.

When You Should Add the Driver Instead of Relying on Permissive Use

Permissive use is most likely to work smoothly when the borrowing is truly occasional. If the person is driving your car more than that, ask your insurer about adding them as a driver (or listing them as an “occasional” driver, depending on how your carrier structures policies).

As a practical rule, you should strongly consider listing the driver if any of the following are true:

• They live with you (even part-time) and could reasonably access the vehicle
• They drive the car to work or school, run weekly errands, or routinely use it
• They keep a set of keys or are allowed to use the car without asking each time
• They’re a teen/new driver in your household (pricing and underwriting can be strict)

If you skip listing a driver who should be disclosed, you risk coverage problems after a crash—especially if the insurer decides the driver was a regular user.

What Happens If a Permissive Driver Crashes Your Car?

If a permissive driver causes an accident, the outcome depends on your policy and the situation, but here’s what commonly happens:

• Your policy may be primary for liability (damage/injuries to others) because it insures the vehicle.
• The driver’s own policy may be secondary or may help once your limits are exhausted (this varies by state and carrier).
• Your deductibles may apply for collision/comprehensive claims on your own vehicle (if you carry those coverages).
• Your rates can be impacted because the claim is tied to your policy and vehicle.

If you’re the one borrowing a car, your own coverage may still matter too. Here’s a helpful overview: Do you need auto insurance for when you borrow a friend’s car?

Permissive Use vs. Unauthorized Use

Permissive use requires permission. If someone takes your vehicle without permission (or you explicitly told them not to drive), your insurer may treat that situation differently—especially on the liability side. If theft is involved, comprehensive coverage (if you carry it) may help with vehicle damage, but every claim is fact-specific.

Common Exceptions That Can Reduce or Void Coverage

Even when you gave permission, coverage is not guaranteed. These are some of the most common scenarios where insurers can limit coverage or deny a claim:

The Driver Is Unlicensed or Inexperienced

Lending your car to an unlicensed driver is risky from both a legal and insurance perspective. It can also create serious claim disputes. If you’re dealing with a teen or inexperienced driver, rates and underwriting rules can be strict. (Related: What do car insurance rates look like for new drivers?)

The Driver Is a Regular User but Not Listed

If the insurer believes the person uses your vehicle routinely, they may argue the driver should have been disclosed and rated on the policy. That can lead to reduced payouts, coverage disputes, or policy action after the claim.

Business Use, Delivery, or Rideshare

Personal auto policies often limit or exclude coverage when the car is used for business purposes. If you or a permissive driver uses your vehicle for deliveries, transporting clients, or other commercial activity, you may need a policy endorsement or a different type of coverage. Learn more: When do you need commercial auto insurance?

Rideshare is a common example. If the driver is using your car for rideshare or delivery apps, coverage may depend on the “period” (app off, app on waiting, en route, passenger in car) and the rideshare coverage in place. More here: Best auto insurance companies for Uber and Lyft drivers

Claim Denials and Policy Language

Insurance decisions come down to policy language, the facts of the accident, and state rules. If the insurer believes a key condition wasn’t met, they may try to deny the claim. This is why it’s smart to confirm permissive-use rules with your carrier before lending your vehicle.

Will a Permissive Use Accident Raise Your Rates?

It can. Because your policy is tied to the vehicle (and you’re the one who gave permission), a claim caused by a permissive driver may affect your future premiums—especially if there’s significant damage, injuries, or repeated claims. Your insurer also considers driving history and claims activity when pricing coverage. Learn more: How does my driving history affect my insurance rates?

Before You Hand Over the Keys: A Quick Checklist

• Confirm the driver has a valid license and is legally allowed to drive.
• Make sure the driver is not excluded on your policy (if you have an exclusion endorsement).
• Ask how the car will be used (personal errands vs. business/delivery/rideshare).
• If the borrowing will be frequent, call your insurer to properly list the driver.

FAQs on Permissive Use Auto Insurance

Final Word on Permissive Use Auto Insurance

Permissive use can protect you when someone borrows your car occasionally—but it’s not a substitute for properly listing household drivers or regular users. If someone will drive your vehicle more than rarely, lives with you, or will use the car for business, contact your insurer first so you don’t learn about limitations the hard way after an accident.