As a motorist operating a vehicle on the roads in Canada, you’re required by law to have a car insurance policy in effect. Without one, you could face some hefty fines if you’re ever pulled over.
But what if you lend the keys to your car to someone else? Are other people allowed to drive your car if they’re not listed as a driver under your insurance policy?
Let’s go into more detail about how your insurance would be affected if another person drives your car, and whether people who aren’t listed under your policy are allowed to drive your car in the first place.
Key Points
- Car insurance follows your vehicle, not the driver.
- Anyone can drive your car and be covered under your insurance policy, as long as you give permission and the person uses your car lawfully.
- If you lend your car to someone who drives your car often, you will need to add their name to your insurance policy.
Who Can Drive My Car Under My Insurance In Ontario?
With an active auto insurance policy, anyone can borrow your vehicle, as long as the following apply:
- The driver has your permission to use your vehicle
- The person borrowing your car has a driver’s license
- The driver is using your vehicle for legal purposes
That includes family members, friends, and other people that you permit to use your car.
It’s important to note that anyone who drives your car regularly will need to be named under your policy. These other drivers are known as “secondary” or “occasional” drivers. Usually, secondary drivers include spouses or grown children.
But anyone who drives your car once or twice will not need to be insured under your policy.
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READ ARTICLEDoes Your Car Insurance Cover The Car Or The Person?
Auto insurance covers the vehicle, not the person driving it. So, if you allow someone else to use your car and they are involved in an incident, your car insurance policy will cover any losses in most cases, not the policy of the person driving it (if they have one).
Having said that, the car must be operated legally, which means it cannot be driven by someone without a current driver’s license or by someone who is using the car for illegal purposes. The vehicle also cannot be driven by anyone who you have specifically excluded from your policy. In these cases, the insurance company will not provide coverage.
What Will My Insurance Cover if Someone Else Has An Accident With My Car?
As mentioned, car insurance follows the vehicle, not the car owner. So, even if someone else is driving your car, your insurance policy will still kick in if your vehicle is involved in a collision.
A standard auto insurance policy will cover everything that would normally be covered if you were the one behind the wheel at the time of the incident, such as the following:
- Liability – If the person who got into an accident with your car causes injury to another person or damage to another car, your insurance policy will cover the damages. To cover the cost of repairing your car, you would require collision insurance.
- Accident benefits and bodily harm – This portion of your insurance policy will cover the cost of medical expenses if the person driving the car is injured in an accident.
How Will Your Insurance Policy Be Affected?
If you let someone use your vehicle and they get into an accident, any claims filed for damages will be made against your auto insurance policy. This applies even if the person you loaned your car to was not at fault for the incident.
That means you will be responsible for fronting the deductible amount before the policy kicks in to cover the damages. It also means that your premiums may increase.
You could ask the person who was driving to pay the deductible if you so choose. However, they’re under no obligation to since the policy is under your name.
Can You Drive Your Friend’s Car With Your Insurance?
As mentioned earlier, auto insurance is associated with the car, not the driver. So, as long as the vehicle is insured, anyone can drive it, as long as the person has permission from the car owner and is legally operating the vehicle.
If you meet these criteria, then you can drive your friend’s car, even if you don’t have insurance. And even if you do, it would be your friend’s insurance policy that would cover any incidents, and not yours. That means your friend will have to file a claim and deal with the damages to the vehicle if you get into an accident.
If the incident is your fault, the liability insurance portion of the policy will cover you and your friend against any potential litigation. Just make sure that the vehicle you intend to borrow has an active insurance policy on it. That way, you won’t risk getting stuck footing the bill to make repairs or dealing with any legal charges in the event of an accident.
Will Adding Additional Drivers To My Insurance Policy Increase My Premiums?
As mentioned, you should add other drivers to your insurance policy if they will be using your car on a regular basis, even if they are not the primary driver. In this case, they will be named a “secondary” or “occasional” driver, depending on how often they intend to use your vehicle.
Your insurance provider will look at the additional driver’s driving record and may charge an additional premium. This is done to offset the additional risk the insurer assumes when someone other than the primary driver uses the vehicle. As such, you can expect your car insurance premiums to increase.
Incidental Vs Occasional Driver
Whether you should add another driver to your insurance policy ultimately comes down to how often they use your vehicle.
Anyone who regularly drives your car should be named on your policy, even if they only take your car out once a week. So, how do you determine whether a person who only takes your car out once in a while should be named in your policy?
- Incidental drivers: Incidental use refers to drivers who borrow your car randomly. For example, if you lend your car out to a friend once every few months to run an errand or two on an irregular basis, they would be considered an incidental driver. In this case, you wouldn’t have to add their name to your insurance policy, and your coverage would still extend to them.
- Occasional drivers: Occasional use refers to drivers who use your car on a more frequent and regular basis. For example, if you let your friend use your car every Friday night, that person should be included as an occasional driver on your policy.
It’s important to disclose drivers to your insurance provider and make sure that you have the right coverage. Failing to have the right people on the policy may result in denied claims.
Things To Consider Before Letting Someone Else Drive Your Car
Before you let someone else take your vehicle out, consider the following:
- Make sure they have a valid driver’s license
- Make sure they have a clean driving record
- Tell the person where your insurance and vehicle registration documents are kept
Final Thoughts
Handing over the keys to your car to another person can be a risk, especially when you stop to consider all the potential things that can happen. The take-home message is that auto insurance is tied to a specific vehicle, and not the person driving it. So, as long as your car is adequately insured and the person driving the car is legally permitted to drive it, you should be covered in the event of an incident.
