Does insurance cover another person who crashes my car?

[simonvee]

Hi,

For example, if I was to lend a car to a friend who is not on my insurance policy, will my insurance cover me for the damage of both my vehicle and other party's damage vehicle, given that my friend was driving and not me?

 

[mrbeachman]

No. Absolutely not.

You have to add that person to your insurance policy, then you would be insured.

 

[zardoz]

Also, that person could be considered as an "uninsured driver" and both you and them could be in trouble.

 

[simonvee]

If that is the case then I'm confused about what I read on two Canadian insurance websites. Please clarify.

http://www.thepersonal.com/p-on/en/info-centre/faq/auto/pages/list-auto.aspx

FAQ

Can I Let My Friend Drive My Car? Will He or She Be Covered?

If you lend your car, you also lend your insurance. If anything happens, your friend will be covered under your auto insurance policy, as long as he or she has a valid driver’s license and meets the other conditions of your policy. If your friend is involved in an at-fault accident while driving your car, it could affect your premium. If you lend your car to someone, remember that your auto insurance coverage may not apply if he or she does not have a valid driver’s license.


http://www.allstate.ca/allstate/auto-insurance/auto-faq.aspx

FAQ

Does my insurance policy cover someone else who drives my car?
Yes. Your policy covers any licensed driver who has your permission to drive your car.

 

[Leon]

Since nobody here has read the small print of your insurance policy, I think it would be best if you pick up the phone and call your insurance, state your account number and ask if your friend would be insured driving your car.

 

[simonvee]

That's my plan, but they're closed today and tomorrow. I was just anxious that's why I decided to ask someone on this forum for a confirmation. However, if we think about it, it appears logical that we should be covered when our friend drives our car.

1. When somebody first learns how to drive (practise) a car after a written exam, it's highly unlikely they'll be listed as a driver in anyone's policy in the house. Think about professional driving instructors, they have thousands of students driving their car.

2. Why should insurance companies care who drives the car. Their aim is to just make money. If someone crashes their car, their premium go up. As long as you pay their bills they should be happy. Straightforward.

Those are just my assumptions but I can be wrong. I'll call the insurance comp just to make sure.

 

[Leon]

Right, however, it is possible that the insurance company would give you a better rate if they think you alone are driving the car as opposed to your friend who may be a young inexperienced driver or someone with a bad driving history.

Before you let your friend drive based on what you think or based on what somebody on an online forum tells you, please talk to your insurance. Ask them if it is ok that another person drives the car as well as if there is an age limit. Then you will know for the future.

 

[mrbeachman]

Yes, I could be wrong, but I do remember even as a family member I had to be added to my stepfather's insurance policy.

This is something you should really call your insurance about. Remember, it is all about how insurance interprets their policy - not you.

 

[NetMecca]

There are some rules about friends borrowing your vehicle, specifically related custody for extended periods etc.

The question of whether someone else is covered under your policy, is primarily a matter of consent. If that person has consent to drive your vehicle from you, then cover should extend to them as well (though specifically for your protection). Realising however that this also comes with some obligation on your part to make sure that the person is actually licensed to drive your vehicle, and that the vehicle will be used in a fashion you have insured it for. Giving consent to an unlicensed driver, could cause some issues though.

If the friend has a vehicle insurance policy of their own, their policy will usually cover them even if they are driving your vehicle.

As was rightly pointed out situations are often unique, and coverages are also often fairly unique, so if you have any concern whatsoever about your own circumstances, call your licensed insurance broker, or insurance company. Explain your situation and get proper advice from them on your situation. This way you can be certain that it is what you need it to be.

Good luck

 

[toutesweet]

If that is the case then I'm confused about what I read on two Canadian insurance websites. Please clarify.

http://www.thepersonal.com/p-on/en/info-centre/faq/auto/pages/list-auto.aspx

FAQ

Can I Let My Friend Drive My Car? Will He or She Be Covered?

If you lend your car, you also lend your insurance. If anything happens, your friend will be covered under your auto insurance policy, as long as he or she has a valid driver's license and meets the other conditions of your policy. If your friend is involved in an at-fault accident while driving your car, it could affect your premium. If you lend your car to someone, remember that your auto insurance coverage may not apply if he or she does not have a valid driver's license.


http://www.allstate.ca/allstate/auto-insurance/auto-faq.aspx

FAQ

Does my insurance policy cover someone else who drives my car?
Yes. Your policy covers any licensed driver who has your permission to drive your car.

This is my understanding, but if they crash your car, the responsibility is on you. It's your premiums that will go up and your record that will be affected.