Lending Your Vehicle

When a friend asks to borrow your car

One question auto insurance brokers get asked quite often is, “Can I lend my friend or family member my car?” The short answer is yes, but in doing so you are also lending them your insurance.

 

Let’s go through a few important pieces of information first if you are considering lending your car:

 

  • All licensed drivers in your household must be disclosed to your insurance company at all times.
  • You must agree, either verbally or in written form, to lend your vehicle to another driver.
  • You can not lend your vehicle on a regular basis without naming the driver on your insurance policy.
  • The person who drives your vehicle must hold a valid drivers license and be legally allowed to drive in the province you are both residing in.
  • The use can be Pleasure use only, no business use.

Your car, Your Insurance

If you lend your vehicle, you are also giving the driver your insurance so in the event of a claim it may be your record that suffers. If, however, the driver has their own policy the claim may be moved to their record at underwriter discretion. Any convictions received while your vehicle is being borrowed apply to the driver.

 

Be sure to read over your insurance policy documents carefully so you understand your coverages. Double check with your insurance broker to make sure it is possible to lend your vehicle and if you find the use is regular you may need to list that driver on your policy.

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