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The scenario where the policy would apply is when a taxi driver friend borrows your vehicle with permission to take his children to school. This is because the borrowing of the vehicle is done with the owner's permission, which is a critical element in most auto insurance policies. When you lend your car to someone, as long as they are licensed and have been given explicit permission to use the vehicle, it typically falls under the coverage of your auto insurance policy.

In this specific case, since the taxi driver is both licensed and has permission to use the vehicle, any incident that occurs while he is driving the car would generally be covered by your insurance policy. This aligns with the common terms of auto insurance that extend coverage to permissive users.

Other situations, such as when your son drives without permission or when your daughter allows her boyfriend to drive after you've only given permission to her, can potentially lead to complications regarding coverage. In the absence of permission, an insurance policy may exclude coverage for those scenarios. Similarly, the scenario with the mechanic may also introduce variables based on whether a garage policy applies, but typically, it would not be the usual coverage under a personal auto policy unless specific provisions are in place.