An in-depth look at who may be considered a covered "permissive use" driver under your car insurance policy.
In most states, your car insurance doesn't automatically cover every traffic accident that involves your vehicle. Policy terms and state laws vary, but your car insurance typically covers drivers who are named on your policy, most household members, and "permissive users." A permissive user is a person who has your permission to drive your car, but isn't listed on your insurance policy.
Read on to learn more about who a permissive user might be, and the basics of what's sometimes known as "permissive use" coverage.
What Does It Mean to Be Specifically Listed on the Insurance Policy?
The people who are specifically listed on an insurance policy are called the "named insured." Liability policies typically cover named insureds no matter what car they are driving.
What Household Members Are Covered by Your Car Insurance Policy?
Spouses of the named insured are typically covered on liability policies no matter what car they are driving, even if the spouse isn't specifically listed on the policy.
Other licensed drivers who are related to the named insured and living in the same household are also covered. Household members can be related by blood, marriage, or adoption.
If you have a roommate or a legal ward or foster child who you want to be covered by your automobile insurance, you should check with your insurance agent to see if that person will be covered as a household member. If that person isn't considered a household member, you will have to specifically list that person as a covered driver on your policy.
Who Is a Permissive User on Your Car Insurance Policy?
Permissive use in an automobile insurance policy means that you give a person—who is not specifically covered by name or as a household member—permission to drive your car.
For example, if you allow a friend to borrow your car, that is permissive use. You have given your friend your permission to use your car. Not all automobile insurance policies cover permissive use. Some policies that cover permissive use might provide only limited coverage for permissive users, or require increased deductibles if a permissive use car insurance claim is made.
So, before you lend your car to even your best friend, you should take a close look at your insurance policy to see exactly what coverage it provides for permissive use situations. If your policy provides limited or no coverage for permissive use of your car, then you might want to think twice before letting anyone borrow your car.
If your friend borrows your car and gets into an accident, it's possible that your friend's own car insurance policy might cover any damages, but that's not guaranteed. The best rule is to know the facts before you lend out your car and read your policy first.
Two Important Exceptions To Permissive Use in Coverage
Even if your insurance policy covers permissive users, it might not cover you if your car is used for business purposes, unless you have a specific endorsem*nt for business use on your policy.
You might think this point is no big deal because you don't drive your car for business. But what if your friend is self-employed and borrows your car to make a business delivery or for a rideshare side hustle? If your policy does not specifically cover business uses by permissive users, you will have no coverage if your friend gets into an accident in your car while driving for a business purpose. This is all the more reason to read your policy carefully.
A second exception to permissive use coverage applies to unlicensed or inexperienced drivers. If you lend your car to an unlicensed driver (hopefully because you didn't know that the person had no driver's license) and that person gets into an accident, your insurance company will almost certainly try to disclaim (deny) coverage.
If you lend your car to an inexperienced driver, it's possible that your insurance company will try to deny coverage. You might think that's unfair, but insurance companies argue that they determine your insurance premium based on the driving records of the people named on the policy. If they knew that a person with much less driving experience than you would be driving your car, they might have increased your premium.
The message here? Always be careful about who you lend your car to. Don't be shy about saying that you just can't lend out your car for insurance reasons.
Get Help Understanding Your Policy
If you can't figure out the fine print of your automobile insurance policy (or any insurance policy), get help. Bring your policy to your insurance agent with a list of questions and have them sit down with you and review the details of the policy, especially when it comes to covered drivers and covered vehicles. Insurance policies are notoriously unclear and difficult to understand. Translating the fine print into plain English is a big part of your insurance agent's job.
FAQs
California permissive use statute defined: Permissive use statute essentially means that if you allow someone to use your vehicle with your permission, they are covered under your insurance policy while driving it. This can include family members, friends, or anyone you trust to use your car.
Can someone not on your insurance drive your car Progressive? ›
Even if they don't live with you, they should be added to your policy if they regularly drive your vehicle. A driver who lives in your household and isn't listed on your auto policy may be denied coverage if they borrow your vehicle and are involved in an accident.
Can someone drive my car if they are not on my insurance USAA? ›
If you give someone permission to drive your vehicle or someone reasonably believes they have your permission, then your policy covers them. If someone drives your vehicle for more than 120 days, we consider them a regular driver. You'll need to add any regular driver to your policy.
How do you explain drive other car coverage? ›
It provides protection for when they rent, borrow, or test drive a vehicle that the company doesn't own. Without it, executives and their spouses are at risk of an expensive claim or lawsuit if they're in an accident driving a car the company doesn't own and insure.
Can I let someone else drive my car with Liberty Mutual? ›
Typically, your auto insurance policy extends to anyone who has permission to use your car. So, if you let a friend borrow your car and they're in an accident, your insurance company may pay the claim.
Can someone drive my car if they are not on my insurance in Texas? ›
Permissive Use
If a driver allows another individual to drive the vehicle, the coverage remains active in Texas. Some examples could include: You allow your friend to drive your car home from a night out because they volunteered to be designated driver.
Does Progressive allow permissive drivers? ›
Permissive driver
You can also be added as a driver on a friend's policy temporarily if you plan to drive their car regularly.
Is it bad to have someone who isn t insured on your car drive it? ›
As long as you give your friend permission, you are good to go. However, if they do get into an accident, it goes on your insurance and could make your premiums go up. If they are going to be driving your car regularly, make sure to add them as an additional driver on your insurance policy.
How does Progressive know who is driving? ›
How does the Snapshot app with Road Test know if I am driving? The app can tell when you're driving based on your speed and the distance you're traveling. It can also tell when you're the driver rather than a passenger. It's entirely automatic, so you can hop in your car without a second thought.
Does Geico have permissive use? ›
Which insurance companies offer permissive use? Most of the big auto insurance companies — Allstate, AAA, GEICO, and USAA — allow for permissive use, but you should always confirm your policy details.
Many insurers, including Progressive, allow adding a friend to a car insurance policy as a driver if you share a permanent residence.
Can a friend drive my car on a road trip? ›
Although you should check your individual policy, usually, you can let your friend drive your car without violating your coverage. As long as you give the person permission and they only drive the car occasionally, there shouldn't be an issue. Accidents, however, can happen anytime.
Am I insured to drive another car? ›
Remember that it's not the car that's insured – it's the driver. So while the owner of the car may have an insurance policy for the vehicle, each driver needs to have their own insurance (either via driving other cars cover or a temporary policy), or be specifically named on the policyholder's insurance policy.
What is miscellaneous vehicle coverage? ›
Posted by admin. This is used to extend insurance coverage to recreational vehicles, motor homes, motorcycles, motorized golf carts and other miscellaneous vehicles that are not already covered under the policy.
Why is it important that you and others who drive have car insurance? ›
Protect Yourself and Others – The right car insurance can help protect you, your family members, your passengers and other drivers. If an accident happens, you want to know you have the right coverage to take care of any property or bodily injury costs that may arise.
Am I covered to drive other cars? ›
Remember that it's not the car that's insured – it's the driver. So while the owner of the car may have an insurance policy for the vehicle, each driver needs to have their own insurance (either via driving other cars cover or a temporary policy), or be specifically named on the policyholder's insurance policy.
Which of the following property is covered under the personal property coverage? ›
Personal property includes things like furniture, clothing, electronics, and kitchenware.
What are the three categories of covered property? ›
There are three types of property insurance coverage: replacement cost, actual cash value, and extended replacement costs. Replacement cost covers the cost of repairing or replacing property at the same or equal value. The coverage is based on replacement cost values rather than the cash value of items.
Which of the following are typical of the limits of coverage for personal belongings in a home owner's insurance policy? ›
Your furniture, clothes, sports equipment and other personal items are covered if they are stolen or destroyed by fire, hurricane or other insured disasters. The coverage is generally 50 to 70 percent of the insurance you have on the structure of the house.
