Who’s Liable In An Accident When You Lend Your Car?

Sometimes, a friend or relative will ask to borrow your vehicle and in most cases, you will hand over the keys and not think anything more about it. It’s hard to say no to someone that you love. However, it’s not always a good idea to loan your vehicle out to someone even if you know them.

Your insurance goes along with your car

When you have a vehicle that you loan out, and they have an accident while in your car, your insurance policy will be held liable for any and all damages. This accident will also go against your driving record and will make your premium prone to an increase.
There are some circumstances though that your insurance will actually refuse to pay any claims on an accident that occurs while you are not the driver. These circumstances include:

• The person that is driving your vehicle at the time of the accident was excluded from driving it under the terms set forth in your insurance policy.
• The accident that occurred was due to the fact that the person who borrowed your vehicle was also under the influence of alcohol and/or drugs
• Your vehicle was lent to someone that had a suspended driver’s license

If an insurance company refuses to pay a claim that is because you violated the policy terms in some way.

Another reason to ask to see your friend’s driver’s license

If someone wants to borrow your vehicle, always ask to see their driver’s license to insure that the license is valid. You can go online and verify that they are valid before you let them take your vehicle. If your vehicle insurance company will not pay a claim, your vehicle may be impounded for a period of 45 days if the person driving the vehicle:

• Left the scene of the accident
• Was driving while not qualified
• Was driving while impaired

Lending your car to someone living in your household

You may also wonder what the rules are when lending your vehicle to someone that resides in your home. When you consider it, you must also verify their driving record and find out what policy coverage they carry as well if you don’t check before hand, and they get into an accident, your insurance may not pay the claim. It is important that you discuss your requirements with injury lawyer in Sherwood Park.

Protecting yourself when borrowing a vehicle

Always protect yourself before you allow someone else to drive your vehicle. You can do this by taking a picture of their insurance proof and verifying the effective dates of the policy. You can also take a picture of their driver’s license as well. When it comes to protection, you can’t be too careful and it’s important that you are protected at all times, even if you are not in the vehicle at all times.