![]() Let’s say the wreck involving your friend causes $17,500 in damage to another person’s car, but your car liability insurance limit for property damage is $10,000. But if your friend has no auto insurance, you may need to turn your policy to cover damage or injuries. What happens if a friend borrows your car without your permission (known as non-permissive use)? In some instances, your friend’s auto insurance will kick in as the primary coverage-not your coverage. “Permissive use” simply means that your friend had permission to drive your car. If the crash isn’t the friend’s fault, the financial responsibility may rest with other drivers who are at fault. ![]() If you’re buying a standard policy from a respectable auto insurer, you won’t have to worry about this.Īlso, you may not even be responsible for damage or injuries arising from a wreck when your friend is behind the wheel of your car. One reason they’re so cheap is because they exclude everyone except the primary driver or offer only limited coverage for other drivers. ![]() These “step-down” policies are generally sold as very cheap policies by sub-standard carriers. For instance, certain auto insurance policies exclude other drivers-even family members in your household-unless your policy specifically lists those drivers. ![]() However, not all policies are alike in this regard. Your friend’s insurance would be considered secondary coverage if your insurance limits are used up because damage and injury bills exceed your policy amounts. (if they’re a regular driver of your car they should be listed on your policy anyway.) Your insurance generally pays for the friend’s crash, as long as your friend is a licensed driver and doesn’t regularly borrow your car. Your friend’s insurance normally wouldn’t cover damage from a crash when they’re driving someone else’s vehicle. For instance, your collision insurance probably will cover damage to your vehicle and your car liability insurance can cover damage or injury to another driver that your friend causes. So, if you let a friend borrow your car, your own auto insurance is typically primary for anything that might happen to your car or the driver during that time. Car Insurance Normally Follows the Vehicle, Not the DriverĪuto insurance usually follows the car, not the driver. Part of the complication surrounds who pays if your friend crashes your car.īuckle up as we take you down the road of this potentially bumpy issue. It can get messier if you weren’t driving your car but, instead, a friend was behind the wheel. If your car is involved in a major traffic violation or if the driver is not in possession of a valid driver’s license, your car could be seized even if you were not behind the wheel.The cleanup from a car crash can be messy. Above all, a question of trustīefore you lend your car to someone else, you need to be sure you can trust the driver. To obtain this information, all you need is the number of the license to be checked and your credit card in order to pay the minimal consultation fee. It’s easy to check the validity of a driver’s license on the website of the Société de l’assurance automobile du Québec. Insurers authorize the loan of a car as long as the borrower holds a valid driver's license. Some drivers add "Damage to vehicles not owned by the insured" ( Endorsement 27) to their contract. If you lend your car to someone who has that endorsement in his or her insurance contract, it may cover any damage to your vehicle in the event of an accident, even if you don’t have that protection. Remember, however, that you will be compensated for damages to your vehicle only if you have collision insurance (in Section B of your auto insurance contract). In the event that driver had the misfortune to be involved in an accident with your car, he or she would be covered under your auto insurance. If you want to lend your car to someone who doesn't live with you, like a friend or a neighbour, there’s no need to run to the phone to make a declaration to your insurer. As soon as someone living under your roof wants to use your vehicle, even only occasionally, you must notify your insurer.įailing to be transparent and neglecting to inform your insurer may result in the insurer's refusal to pay in the event of a claim, or in the amount of compensation being reduced.
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