Although you should check your individual policy, most of the time you can let someone drive your car and still have coverage. As long as you give the person permission, and they only drive the car occasionally, there shouldn’t be an issue. Find out what happens when you let a friend or family member borrow your car.

Can I lend my car to a friend in Ontario?

You can’t lend your auto on a regular basis to someone without naming him or her on your insurance policy. The person who borrows your auto must be licensed and legally allowed to drive in the province or territory where you both live.

Can I finance a car and let someone else drive it?

Financing a car in your name and then transferring it to someone who could not obtain a car loan on their own is called a ‘straw purchase’ and it is illegal and risky. Using someone else’s name to secure a car loan because of poor credit also falls under this umbrella.

What happens if I let my friend drive my car?

If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy. The claim would go on your insurance record and could affect your car insurance rates in the future.

What happens if my friend borrowed my car and gets in an accident?

In the case that you drive your friend’s car and then get in an accident and they have this kind of insurance policy, which most people obtain, then the vehicle owner’s insurance policy will become the primary coverage for paying the damages and the driver’s insurance would be the secondary insurance.

Can you take out car finance without a license?

Do I have to have a full driving licence to apply for finance? No, you do not. You will need a full licence if you intend to drive the car on your own, however you do not need one to apply for car finance. You will need to provide some form of identification so you will need a provisional licence or passport.

What happens if you let someone borrow your car and they crash it?

In California, vehicle owners are generally responsible for damages if they allow friends or relatives to borrow their vehicle. However, as the owner of the vehicle, you could be sued for negligence by the other party involved in the crash.

Does my insurance cover me in another car?

As long as a driver has the vehicle owner’s permission to operate the vehicle, the owner’s policy will provide coverage no matter who the driver is. The vehicle owner’s policy should cover injuries and property damage.