Lending Your Car?

When a friend or relative asks to borrow your car, you want to say, “No problem,”. But before you hand over the keys, know what insurance coverage you have when it comes to occasional drivers and the potential risks associated with lending it.

Know that if you lend your car, you accept full responsibility for that driver and any repercussions that may come with it due to an accident – remember, it’s not just your car that you’re lending, it’s also your insurance policy.

If you do give permission to borrow your car, let’s say, for a one-time use like going to a doctor’s appointment, there are a few things to keep in mind.

First, make sure the person you’re lending it to has a valid driver’s license. Sounds simple, but if their license has been suspended or is invalid, your insurance coverage may not apply.

Second, make sure your registration and insurance details are in the car, in case something happens – you probably wouldn’t want your friend or family member to be at the scene of an accident and not be able to prove you loaned them the vehicle.

And third, make sure you agree on how and when the person who’s borrowing your car can use it.

If you lend your car to someone on a regular basis, say to your brother or sister every Saturday morning, you may want to add them to your insurance policy. If they aren’t listed on your policy and they drive your car on a regular basis, an accident claim could be denied.

Bottom line – lending your car means accepting full responsibility for whatever happens. If you need more details or aren’t sure of the impact on your insurance when you lend your car, you’re best to check with your licensed insurance advisor.