# Permissive use

> Permissive use explained: when your car insurance covers someone you let borrow your car, whose policy pays first, and the common exceptions.

Canonical page: https://statecover-guide.com/glossary/permissive-use/  
Last reviewed: October 28, 2026 by the StateCover Guide editorial team  
General information, not legal or insurance advice.

## Quick answer

Permissive use means someone drives your car with your permission. Most auto policies cover a licensed driver who uses your car with your consent, so your insurance usually responds if that person causes a crash.

## How it works

The NAIC notes that almost all liability policies cover a licensed driver who drives your car with your permission, but that some policies state that no one else is covered. The Texas Department of Insurance puts it the same way: most policies cover you, your family and people driving your car with your permission.

What this means when you lend your car:

- **Your policy pays first.** If a friend causes a crash in your car, Texas explains that the owner's insurance pays the claim. The friend's own policy may pay if your coverage is missing or not enough.
- **Your limits and deductibles apply.** The claim is made under your policy, so your liability limits cap what it pays for others, and your collision deductible applies to repairs to your car.
- **Exceptions exist.** A driver named in an exclusion is not covered. Some insurers also require everyone of driving age who lives with you to be listed on the policy, so a household member who is not listed may be treated differently from an occasional borrower.

Read your policy or ask your agent who is covered before lending your car regularly.

## Related terms

- [Named driver exclusion](https://statecover-guide.com/glossary/named-driver-exclusion/)
- [Primary and secondary coverage](https://statecover-guide.com/glossary/primary-and-secondary-coverage/)
- [Non-owner car insurance](https://statecover-guide.com/glossary/non-owner-car-insurance/)
- [Liability insurance](https://statecover-guide.com/glossary/liability-insurance/)
- Guide: [Liability car insurance explained](https://statecover-guide.com/coverage/liability/)

## Sources

- [NAIC, Auto insurance consumer information](https://content.naic.org/consumer/auto-insurance.htm) — coverage for licensed drivers using your car with permission
- [Texas Department of Insurance, Auto insurance guide](https://www.tdi.texas.gov/pubs/consumer/cb020.html) — who most policies cover, borrowed cars, listing household drivers