What Is Permissive Use, and Who Does It Cover?

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
  • Permissive use
  • Policy listing
  • Exceptions
  • Insurance rates
  • Best rates
  • FAQs
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.
If your coverage isn’t right for your needs, let the car insurance broker app Jerry help you find car insurance quotes online that will!
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to.
Read on to see if permissive use applies to you.
RECOMMENDED
Compare auto insurance policies
No spam or unwanted phone calls · No long forms · No fees, ever

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.
RECOMMENDED
Compare auto insurance policies
No spam or unwanted phone calls · No long forms · No fees, ever

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

Thinking about adding more drivers to your policy with permissive use? It may be time to make a change.
The online broker app Jerry can help you find lower rates that suit your needs. In less than a minute, you’ll get up to 50 competing quotes to help you make the best choice possible.
Swapping is just as effortless. Jerry takes care of all the paperwork and phone calls and even can assist you in canceling your old policy!

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.
“I was paying $350 a month for my new car. With Jerry, I set up a new policy in under 30 minutes that will save me over $1000 a year!” ––Mariah K.
RECOMMENDED
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
avatar
Judith switched to Progressive
icon savingsSaved $725 annually
avatar
Alexander switched to Travelers
icon savingsSaved $834 annually
avatar
Annie switched to Nationwide
icon savingsSaved $668 annually

Easiest way to compare and buy car insurance

√
No long forms
√
No spam or unwanted phone calls
√
Quotes from top insurance companies
Find insurance savings — it's 100% free