A person receiving a set of keys

Things to remember if you loan your car to someone

There are often times when family members or friends may ask if they can borrow your car. Most people wouldn’t think twice and would hand over the keys. However, there are implications you need to be aware of before you loan your car to someone.

Loan a Car

If someone borrows your vehicle and gets in an accident, the registered owner is still considered to be legally liable. This is very important to remember as it can have serious implications on your insurance. The vehicle owner’s policy, not the insurance of the person driving, would respond in the case of an accident. This could raise the vehicle owner’s insurance rates, if the borrower is deemed at fault for the crash.

You must also make sure the borrower has a valid license and that your car is properly insured before loaning them the vehicle. For instance, if your insurance states that the principal driver has to have 10 years driving experience, you need make sure the borrower meets this requirement or amend the insurance so they are properly protected.

Before lending the vehicle, you should contact your insurance broker to ensure you have the proper insurance in place. Even if you think the borrower is covered by the policy, it is always better to confirm this and avoid any potential issues later.

Also, remember, if you are driving a car 5 years old or newer, you should purchase new car replacement insurance. Vehicles depreciate the moment you drive them off the dealer lot and this policy would cover the difference between your insurance settlement and the amount you paid for your vehicle.

It is important to be informed of your insurance options in order to make the best decision for your requirements. Contact a DriveSure.ca broker today if you have any questions.


DriveSure.ca provides a suite of insurance products that help you protect the value of your vehicle including replacement cost, limited depreciation, post-crash guarantee and OEM parts. Contact a DriveSure.ca broker in your area to get a quote.

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