A friend drove my car and crashed. What happens to my insurance

It is very common for parents to lend their vehicle to their children, or for a friend who is moving to borrow your truck.

But what happens if your friend crashes your car?

By allowing another driver to operate your vehicle, you are taking responsibility for the driver

If you think your insurance premium will not be affected because your friend or relative had an accident while they were driving your vehicle— you are wrong.

Let’s take a look at how an at-fault accident is handled when it is caused by a driver who is not listed on your auto insurance policy.

Whose car insurance policy covers the vehicle?

In an at-fault driver situation, the only way to get coverage on the vehicle is by the owner of the vehicle’s insurance policy. If the policy does not have collision coverage listed, no coverage is available. The vehicle’s deductible applies which your friend can pay, but it still an accident under your policy. In short, the owner of the vehicle is ultimately on the hook.

What about my premium?

Because you allowed another driver to use your vehicle, you are responsible for that driver. Insurance companies will base your insurance rate on the odds of any future claims. Although you may not have been the one to cause the at-fault accident, you are still at a higher risk for having loaned your car. At fault accident caused by your friend with your car will penalize you with an increase in your premium at renewal time.

When you lend your vehicle, remember that you also lend your insurance record. Therefore, be careful before lending your car to anyone.

Safe driving,

Inder Madan
Insurance Broker & Financial Advisor
(905) 568-1676
[email protected]