Lend your car, lend your insurance

“Can I borrow your car?” That common question seems innocent enough. But handing over the keys could impact your insurance if your friend happens to get into an accident.

Lending your insurance

Drivers are insured when using your car, so long as they have your permission to borrow the car. In the unfortunate event an accident happens, it’s important to understand that a claim will be made on the owner’s insurance, even if the driver borrowing your car has their own insurance.

What do I need to know before lending my car?

You certainly want to be a considerate and trusting friend, and help them out in their time of need. It doesn't hurt to do so prudently, however. Consider the following before lending out your vehicle:

• Typically your policy will pay out any damages and liability claims
• The car owner will be responsible for paying the deductible
• An accident claim will remain on your profile
• The claim stays on your policy until the person who borrowed your car notifies their own insurance company of the accident
• The car owner may have increased insurance rates as a result of an accident claim

If you have any lingering doubts and concerns about having someone borrow your car and what it might do to your insurance premiums, reach out to the expert team at AIM. Our brokers will be able to give you the information and peace of mind you need to lend out your vehicle like the great friend you are!