Lending things to your friends is a common thing. But what if you lend them your car? This is such a responsability, but who can you lend it to and what are the consequences regarding your insurance?

Lending Your Car : How Are You Covered by Your Insurance? cat-2 main
Source : www.protejase.com.ve
When can you let someone borrow your car? It's ok to lend your car to friends and family once in a while, there is no problem regarding the insurance. When you arrive somewhere where they have valet drivers (it doesn't happen to everybody, that's true), it's not lending your car to someone but it's pretty much the same. Usually, the valet company has an insurance for the vehicles their valets drive. Of course, if you are physically unable to drive your vehicle, if you need assistance and you need to be driven by someone else. That's also a case of lending your car. When you are going on a short trip, you can also switch drivers. Same thing if a friend of yours is moving, you can lend them your vehicle, it doesn't cause any problem at all regarding your insurance. All these cases are called lending "under permissive use". You allow your fiends or family to use your vehicle without any written agreement but trust them enough to drive safely. If anything happens while they're driving your car, it won't affect your driving record but theirs. Whereas if an accident happens, the insurance would follow your car and not the driver. They would cover the damages, so be careful who you are giving the wheel to!
Lending Your Car : How Are You Covered by Your Insurance? cat-2 main
Source : www.wegoinsurance.com
When shouldn't you let someone borrow your car? Your car insurance policy has been priced according to your driving record and not the person you are lending it to. So if you are lending your car for a long period of time, it's not going to work for your insurer if they find out. That would put you in a very complicated situation with your insurance. You shouldn't lend your car more than 12 times a year to someone who is not added to your insurance policy. Same for long road trips, when you're travelling with friends and want to share the driving responsibilities, they will probably drive for more than 12 times. This number is the limit and it's better to add your friend on your policy if you're travelling for a few weeks. People living  together like couples, married or not, often use each other's car. It is then advised to add your spouse to the car insurance policy. If it happens that an underage or unlicensed driver is behind your car's wheel, you could have big problems. The car is followed by the insurance, not the driver, so even if you make a claim, the insurance could deny it because the driver was underaged or unlicensed. And last but not least, if you have any doubt about the way your friend drives, don't lend him/her your car! You will then be the one who will pay for the damage!
Lending Your Car : How Are You Covered by Your Insurance? cat-2 main
Source : www.groupevezina.com
What are the consequences ?  If any of your relatives or friends drive your car and cause an accident or make any damage, your car insurance rates increase because of your new claims and the insurer could deny your claim if you didn't add the person to your insurance policy. Be sure about the person's ability to drive before you lend them your car, and in doubt, you can always have a chat with your insurer and ask what your policy allows you to do or not. Just to avoid the salty bill, nobody wants one!  

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