Lending your car and insurance

There are times you may want to help out a friend, or may not be in a state to drive yourself. It's normal to want to lend you car, or let someone else drive.

You can sometimes lend your car to someone else, provided this person has your permission and has a valid driver's licence. If not, compensation could be jeopardized in case of an accident.

If my friend has an accident driving my car, would I be compensated?

Yes you would, but the compensation will depend on the protections you have chosen.

If your friend is not at fault for the accident, you'll be reimbursed for the damage incurred, even if you only have liability coverage.
If your friend is at fault for the accident, you'll be compensated only if you have coverage for damage to the insured vehicle.

Could my friend's insurer compensate for the damages on my vehicle?

Yes, but only if your friend is responsible of the accident. Your friend also has to have subscribed to endorsement 27 ("Damage to vehicles not owned by the insured"). The damages could then be covered by your friend's insurer. In such a case, you would have the choice to either make a claim to your own insurer or your friend's.

Note that no matter whose insurer will compensate, the accident will still be attributed to your friend and found under their personal claims file.