Your liability if you lend your car to someone

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Oct 06, 2021 11:00 ET

Legal Newswire POWERED BY LAW.COM

Is it bad to let someone else drive their car?
Not necessarily. However, there are a few things that you need to be aware of before handing your key over to someone who wants to borrow it.
It may sound grim, but you should always consider potential consequences so that you can take appropriate precautions and safety measures.
For example, if a person is in a Accident while driving someone else’s car, does the insurance cover the repair costs? As Car Accident Attorneys would tell you that these things are usually a little more complicated, especially when it comes to insurance. Remember, it is always a good idea to ask the other person a few questions before renting out your car to a friend or relative to make sure you are protected. actuarial. After all, as a car owner, you have legal obligations. Therefore, the person renting your car should also be made aware of their responsibilities when renting personal property such as a car. So if you’ve loaned your car to others a couple of times and wondered, ‘What if someone drives my car and has an accident?‘ Do not worry. You are not alone and we have just the right guide for you to ensure you and your friends or family are protected.

Insurance is part of the vehicle.
If you haven’t already paused to worry about what happens to the insurance company when someone borrows your car, the following rule of thumb applies: you and your insurance company are responsible for any damage or liabilities caused by the borrower. Insurance belongs to your vehicle, not to you. As such, have an accident in someone else’s car affects the lender’s driving record and may increase their insurance premium.
Basically, when you lend someone your car, you are also lending your insurance and your driver’s license. Many car owners are not aware of this!
In certain situations, insurance companies can even refuse to pay a damage if a vehicle has been loaned to someone else. For example, an insurance company will deny your claim if:

  • The accident was caused by a borrower who drove under the influence of alcohol and / or drugs
  • The borrower has not been identified under the terms of your insurance policy
  • The borrower does not have a driver’s license or has it suspended

In this case, a denied claim would also mean that you could be held liable for damage caused by the person who rented your car.
We’ll discuss these reasons in more detail below:

Reasons why an insurance company may deny your claim

1. The person who rented your car does not have a driver’s license.
Allowing someone without a valid driver’s license or with a revoked driver’s license to drive your car will be considered a violation of your insurance policy. Therefore, your insurance company will most likely reject your claim. You are then liable for any damage or liabilities incurred.
However, if you were unaware that the borrower has no license or a suspended license, the chances of a rejection are lower. However, it is still important to check that the borrower has a valid license. You can check the validity of the license online using the Ontario Department of Transportation.
Ontario’s Vehicle Impoundment Program aims to get drivers off the road with revoked drivers’ licenses. If the person who rented your car is found to have a driver’s license disqualified, your vehicle will be confiscated and detained for at least 45 days for the following violations:

  • Driving under the influence
  • Driving in violation of a condition of your driver’s license
  • Driving with disqualification
  • Not being able to meet the requirements to restore a suspended license
  • Leave the scene of the accident or flee

2. When people borrow and use your car regularly.
Underwriting, there is a big difference between lending your car to someone occasionally and driving it regularly.
When Rent a car for the long term or most insurance companies regularly require that the borrower be included in the insurance policy as an “occasional driver”. This also increases your monthly premium due to the second driver insurance.
However, let’s say the person stays unregistered and suffers an accident. If so, your insurer will likely deny your claim because you did not disclose your agreement with the borrower.

3. When your car is used for deliveries
Insurance companies are careful to describe the uses of a vehicle according to their insurance policy. If your friend or family member uses your car regularly to deliver goods like groceries and packages, or even people, your accident claim may be denied.
The delivery of goods and people is considered a commercial service and is therefore outside the scope of personal insurance.
On the other hand, if the borrower used your car for deliveries but you weren’t aware of it, your insurer can allow your claim. However, there are no guarantees that it will be approved, so it is always better to play it safe before lending your keys to anyone.
If you are looking to do business with friends or family and have decided to offer your car for delivery purposes, it is best to look for companies that offer coverage for those looking to use a personal vehicle for commercial purposes.

How to protect yourself when borrowing or borrowing a car.
So,Can you get in trouble lending your car to someone? Based on what we’ve discussed so far, the answer is yes you can.
However, there are also several ways to protect yourself. before loan a car to a family member or a friend, make sure you’ve checked or done the following:

  • Check that the borrower has a valid driver’s license
  • Put a copy of the registration and insurance policy in the car. Also, let the borrower know where they are.
  • If possible, ask the borrower to write down the purpose and location of the car. This will make it easier for you to consent and will help avoid confusion later.
  • Remind the borrower that he is the only one allowed to drive the car.
  • Make sure your car is in good condition before loaning it out.

However, if you are a borrower, here are some additional protection you should take in case you are in one Accident while driving someone else’s car:

  • Request for proof that the vehicle is insured
  • Double check your driver’s license
  • Make sure you are the only driver as agreed
  • Refrain from using drugs and / or alcohol when driving a car

What to do if you are injured in an accident while driving a rented car?
In the event that you need help someone else driving a car after an accident, please contact our legal experts at Avanessy Giordano Personal Injury Lawyers. Car accidents involving borrowed cars can become a serious legal problem. So don’t hesitate to contact us at (416) 551-5492. You could also send a contact form via our website or contact us at social media.

Whatever your question or concern, we have solid advice to help you anytime through our various channels.

Avanessy Giordano Law Firm offers its services in Toronto and throughout Ontario. For more information, please visit https://avagiolaw.com/. Avanessy Giordano Law Firm thanks the online marketing agency dNovo Group https://dnovogroup.com/ for help on this article.

620 Wilson Avenue, Suite 504
Toronto, Ontario M3K 1Z3
Tel: (416) 551-5492
Fax: (416) 551-5493
www.avagiolaw.com

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