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Who’s Responsible If You Loan Out Your Car?

By: Emma Neynens, Associate Lawyer

If you lend your car to someone and it is involved in an accident, your insurance responds.

This means, if you lend your car to a friend and they cause or contribute to an accident and injure a third party, your car insurance will respond to the third party’s claim for bodily injury. If that third party starts a lawsuit, they will name your friend (the driver) and you as the registered owner of the vehicle. You will be served personally with the lawsuit and then your car insurance will defend on behalf of you and your friend.

If the friend you lend your car to is injured, your car insurance will act as their Section B insurer and provide any necessary medical benefits and loss of income benefits as defined in your policy of insurance.

If your car is involved in an accident, regardless of who is at fault or who was driving, it will be documented as an accident on your insurance and could affect your rates. These are just a few things to consider when thinking about lending your car. If you have any questions, please contact us.

DISCLAIMER: The publications on this website are intended to provide information of a general nature and not legal advice. The information contained in this publication is current to the date of the publication and may be subject to change following the publication date.

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