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Borrowed car : Are you covered if you have an accident?

Who has never borrowed a relative’s or friend’s car or never loaned their own? It happens all the time, but did you ever wonder what would happen if the car was involved in an accident? The following are Assurances Groupe Vezina’s answers to frequently asked questions on this subject.

Are you legally allowed to loan your car?

Yes. In Quebec, there is no problem with loaning your car to a licensed driver.

What happens if the person you loaned your car to damages it in an accident?

First off, the accident will be recorded in the driver’s file and not the owner’s.

If there is damage, the vehicle’s owner will be indemnified according to his or her car insurance contract. This means that if the person who borrowed your car has an at-fault accident, you must pay the repair costs if you don’t have optional collision coverage in your car insurance contract.

My child often borrows my car. Should I let my broker know?

Yes! Your broker can evaluate the new situation and advise you on any changes to make to your coverage so that you are adequately insured if your child should have an accident while driving the car. For example, you will probably be advised to add his or her name to the contract as a secondary driver by paying a small premium increase.

Advising your broker when your child starts borrowing your car has a number of advantages. In addition to providing you with peace of mind, knowing you will be compensated if something should happen while he or she is at the wheel, your child will also have a driving record that could be considered when it comes time for him or her to purchase insurance. He or she may be entitled to a premium reduction!