If I lend my car to someone and they get into an accident is my insurance affected?

Question: If I lend my car to someone and they get into an accident is my insurance affected?

Answer: Anytime you lend your vehicle, you are effectively lending your insurance. So if you are lending your car to a friend or family member, be very careful because if they get into an accident it will affect your insurance. If they have an at-fault claim your premium will go up.

More Info: In Ontario, insurance follows the vehicle. For instance let’s suppose that you lend your vehicle to a friend of yours but that friend does not have their own insurance policy. The coverage has to be picked up somewhere and in this case would likely fall back on you the owner of the vehicle and policy holder. This is why the insurance is on the vehicle not on the driver.

If you would like a quote head to our car insurance page and one of our brokers will contact you.