A driving assist system for a vehicle includes a driver monitoring system that includes a plurality of sensors disposed in a vehicle and sensing driver hand positions of a driver driving the vehicle. A control includes a processor operable to process data sensed by the sensors to determine the driver hand positions of the driver driving the vehicle. The control, responsive to processing of data sensed by the sensors and at least in part responsive to the determined sensed driver hand positions, is operable to determine a level of attentiveness of the driver. The driving assistance system of the vehicle operates to provide driving assistance of the vehicle responsive at least in part to the determined level of attentiveness of the driver.