Lending your car to a trusted relative or friend may seem like a kind gesture, but it could impact your auto insurance. Learn more about what could happen to your insurance if someone else drives your car.

Lending your car to a driver who is listed on your policy

Depending on your auto insurance coverage, your auto insurance can cover your vehicle if you plan to let a driver who is listed on your policy borrow it. That being said, if the driver has a car accident, it could impact your insurance premium despite the fact that you were not the driver. Because auto insurance coverage is connected to the vehicle not the driver, your insurer will deal with the claim. But there are exceptions in some provinces, so check with your insurance company.

Lending your car to a driver who isn’t listed on your policy

If you are going to lend your vehicle to a driver who won’t be driving your vehicle regularly and won’t be listed on your policy, the unlisted driver must have a valid driver’s licence and be legally allowed to drive.

What happens if the driver gets into an accident?

If the person you lend the vehicle to gets into an accident, it may affect your insurance rates. Despite not being in the vehicle at the time, you could still be penalized. In some cases, this can apply even if the driver wasn’t at fault for the accident.

What to do before lending your car

  1. Always check that the driver has a valid driver’s licence and that they are legally allowed to drive.
  2. Show the driver where the proof of auto insurance and registration is in your vehicle.
  3. For peace of mind, talk to the driver to make sure they understand the responsibilities that comes with borrowing your vehicle.
  4. You can help limit the risk of a potential car accident by inspecting your vehicle to ensure it’s in good working condition and the gas tank is filled up.

Need to make a claim? The Personal makes it easy with our quick online claim service. We’ve got the coverage you can rely on.

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