Borrowing someone else's car?
There's a motto the insurance industry likes to repeat:
Lend your car; lend your car insurance.
When you borrow someone else's car, you are not only borrowing the vehicle but also the car insurance, entire insurance history and any discounts they have earned on their rates. This means that if you were involved in a collision of any kind while driving their vehicle, you would be taking their insurance record along for the ride. It would be their insurance provider that would be responsible for liability and damages even if you have auto insurance of your own and it's your friend's rates that can be increased as a result.
Although the kind act of lending out a vehicle is commonplace, many drivers and borrowers are unaware of the full extent of the responsibility.
A Car Borrower's Checklist
Before you borrow the car, confirm the following things:
- Ensure you have verbal or written permission to borrow the car
- Make sure you have a valid Ontario driver's licence in your name
- Confirm location of registration and proof of insurance
- Take note of your friend's insurance information and emergency contact information just in case
- Check that the vehicle is in good working order including brakes, signals, fluids and lights
Insurance Fault vs. Criminal Guilt
It's important to note that while your friend's insurance would be responsible for dealing with the liability and damages from an insurance perspective, you are still responsible for yourself.
The insurance industry and the criminal justice system are independent from one another and they define and investigate fault differently.
Even if your friend's insurance company deemed that you were not at fault in a collision, you could still be charged with an offence under the Highway Traffic Act. It is you who will face the consequences and it is your insurance rates now and down the line that will be affected by any convictions.
How It Can Affect Your Car Insurance
Even if you don't have your own auto insurance policy at the time of the collision, those charges and convictions remain on your driving record for at least three years, depending on the nature of the conviction.
Your driving record is one of the key variables in determining your car insurance rates, so remember that anything that happens now can continue to affect you in the long run.
Additional Tips For Driving A Borrowed Car
- Practice defensive driving
- Never lend the vehicle to someone else
- If you are involved in an accident, contact police and the insurance company
- If you are borrowing your friend's vehicle on a regular basis, talk to them about adding your name as an occasional driver to their policy to ensure they have adequate coverage
Road trip season is almost here. If you're borrowing a vehicle from a friend or family member, keep the above things in mind but don't forget to enjoy the ride!
For more driving tips and articles, check out our blog here. To learn more about OTIP, Ontario's only non-profit insurance provider exclusively for educators, click here.