Lending Out Your Car And Insurance Policy - Diamond and Diamond Lawyers
  • Wednesday, 08 May 2013

Lending Out Your Car And Insurance Policy

Auto insurance is a tricky thing. It is a contract between you and your insurance company. They are supposed to comply with certain regulations under the contract – and so are you.

Lending your car to other drivers is one issue that frequently comes up. You are allowed to lend your car, but be aware it is your insurance that will respond in the case of an accident. As the owner of the vehicle, you will be held responsible for any damage your vehicle causes, whether or not you are the actual driver. Be wary of who you lend your vehicle to; you are essentially lending your insurance policy.

If you lend your vehicle to someone who is specifically listed as an excluded driver, your coverage is vitiated. This means you could be personally responsible for the damage if that person gets in a motor vehicle accident.

Because insurance companies will often ask you to exclude drivers under 21 for a better rate, make sure that young driver does NOT get behind the wheel of your vehicle. That means hiding the keys and having a conversation about the ramifications of them driving the vehicle.

The onus is on you to prove you did not consent to the excluded driver using the vehicle. Keeping your keys out in the open can be construed as consent because you knew or ought to have known the young driver would take the vehicle.

Take even greater care with rental policies. I see this scenario the most. Insurance through car rental companies only covers the listed driver. If your driver is not listed on the rental contract, there is no insurance and again you will be personally liable for any damage.

If you are unsure, ask your broker. Do not take a risk with your insurance. It is your rates that will suffer in the end.

Leave a Reply

 

Get the help you deserve

1-800-567-HURT

Call NOW for a free consultation

Diamond & Diamond Ontario Head Office

255 Consumers Road, 5th Floor, Toronto, Ontario

>> Learn More

Diamond & Diamond Alberta Head Office

4246 97 Street NW, Unit 100, Edmonton, Alberta

>> Learn More

Diamond & Diamond British Columbia Head Office

1727 West Broadway, Suite 400, Vancouver, British Columbia

>> Learn More

Barrie

17 Poyntz Street

Brampton

341 Parkhurst Square, Suite 5

Calgary

1331 Macleod Trail SE, Suite 420

Edmonton

4246 97 Street NW, Unit 100

Hamilton

105 Main Street East, Suite 1500

Kelowna

1631 Dickson Avenue Suite 1100

London

256 Pall Mall St, Suite 102

Oakville / Mississauga

2939 Portland Drive, Suite 200

Oshawa

50 Richmond Street E, Unit # 108 B

Ottawa

955 Greenvalley Crescent, Unit 315

Sudbury

144 Elm Street, Suite 201

Surrey

1104 – 13737 96 Ave, Surrey, BC V3V 0C6

Thunder Bay

278 Algoma Street South

Toronto

255 Consumers Road, 5th Floor

Vancouver

1727 West Broadway, Suite 400

Windsor

13158 Tecumseh Rd. E. Unit 3B