What you need to know before lending your car to a friend

Post City X Diamond & Diamond

See all posts by Diamond and Diamond Lawyers

The age old question: to lend your car, or not to lend your car? While this is likely something that many have done at one point or another, the reality is that there are important considerations that you need to think about before handing over your keys. As Canada’s Largest Personal Injury Law Firm, Diamond and Diamond Lawyers are no strangers to the many potential issues that can arise with car ownership. Lawyers from their team outlined some important information that you should consider before lending out your own vehicle or borrowing someone else’s.

Insurance Considerations

As a general rule of thumb, the insurance policy typically sticks with the vehicle. For example, if you borrow a vehicle from a friend and an accident occurs while you’re driving their car, you will typically be covered under their insurance policy, as you are operating their vehicle. However, there are some notable exceptions to this statement:

  1. The borrower of the car must be a licensed driver
  2. The borrower of the car must have consent to borrow the vehicle
  3. If you plan on lending out the vehicle with any regularity, it’s a good idea to check with your insurance provider to make sure that you have unlisted driver protection for your vehicle

Answers To Some Frequently Asked Questions

  1. Question: Should you lend your vehicle if you know there’s something wrong with it?
    Answer: No – if you know about issues with your vehicle but choose to loan it out anyways, this could open you up to litigation if an accident occurs as a result of your car’s problem(s).
  2. Question: Should you notify your insurance if someone will be using your vehicle regularly?
    Answer: Absolutely – if an individual is planning to use your vehicle on a regular basis, then you must inform your insurance provider so they can adjust your coverage accordingly.
  3. Question: Can you file a lawsuit against a friend who crashed your car when they were borrowing it?
    Answer: Generally speaking, no. If you lend your vehicle to someone, you’re assuming the risk of them getting in an accident.

If you or a loved one have been involved in a motor vehicle accident, it’s important to speak with a lawyer to understand your rights. Don’t hesitate to reach out to Diamond and Diamond at 1-800-567-HURT to schedule a free consultation.

About Jeremy Diamond

Jeremy Diamond is a lawyer and member of both Ontario and Florida Bars. Jeremy practices in the area of Plaintiff personal injury litigation. Click here to learn more about Jeremy Diamond.