Many drivers do not fully understand the coverage of their auto insurance policies. The fact is, when you lend your vehicle to someone you also lend your car insurance. By lending your vehicle to another driver you are taking full responsibility for any incident that may occur while your vehicle is in their possession. Should an accident occur, it may show up on your record as an ‘at fault’ incident which may affect your future insurance premiums.
It is important to always be cautious when lending your vehicle and it is essential to understand the terms of your auto insurance policy. If an individual often borrows your vehicle, consider adding them to your insurance policy. Withholding such information from an insurance company may invalidate your coverage.
Things to remember when lending a vehicle:
• Ensure the individual borrowing your vehicle has a valid driver’s licence
• Ensure all proper documentation is in your vehicle
• Ensure only the individual you are lending to will be driving your vehicle
If you have any questions or concerns regarding your insurance policies never hesitate to contact your broker.