Can I Let Someone Else Drive My Car?

• If I lend my car to another driver and they get in a collision, will it affect my car insurance coverage?
  • If you give your friend permission to borrow your vehicle and they get into an accident, your own insurance company will probably need to pick up the tab — and the claim will likely remain in your file, which could affect your premium or other aspects of your coverage.
  • If you’re trusting someone to borrow your vehicle, you’re also trusting them to borrow your insurance policy. Consider asking a few questions about what they’re using your vehicle for and where they’ll be going. If you’re not confident in someone’s driving skills or that they’ll follow the rules in your insurance policy, you might want to reconsider lending them your vehicle.

• Generally speaking, your own insurance policy should still cover damage to your vehicle even when someone else is driving it, as long the driver:
  • Is licensed to drive in Canada
  • Has your permission (verbal or written) to drive your vehicle
  • Sticks to the rules outlined in your policy
  • Doesn’t participate in illegal activities while using your vehicle

While every insurance company has its own set of requirements that specify when you should identify someone as an occasional driver on your auto policy, generally speaking, if someone borrows your car on a regular basis, they should be added as an occasional driver on your policy.