Automotive

Do I need insurance to drive other's car?

  • Last Updated:
  • Nov 20th, 2019 4:57 pm
[OP]
Deal Addict
Oct 3, 2011
1168 posts
250 upvotes
OTTAWA

Do I need insurance to drive other's car?

I wish to have some insights about auto insurance. I live in Ottawa, Ontario. Last week I learnt a lot via the thread RENTAL CAR INSURANCE that I posted.

Say for example A and B are brothers/friends.

1) Each of them has a car with full auto insurance. If A drives B's car and IF he causes an accident hitting somebody or property, does his own auto insurance cover him? OR the claim goes to B because B allows A drive his car?

2) What will happen if B allows A to drive his car and B knows A does not have a car nor auto insurance, and while A is driving B's car hits someone? Does the claim go to B?

Thanks in advance.
8 replies
Deal Addict
Dec 25, 2005
1441 posts
465 upvotes
http://www.ibc.ca/on/auto/risk-management/lending-a-car

When you lend your auto, you also share your auto insurance. Typically, a guest driver is also covered under your policy. Should the guest driver cause a collision while driving your vehicle, your premium may increase.

Under certain circumstances, you can lend your auto without naming a guest driver on your insurance policy. If you decide to lend your auto, keep the following in mind:

You must agree – verbally or in writing – that the driver may use your vehicle.

You can’t lend your auto on a regular basis to someone without naming him or her on your insurance policy. If, for example, a friend wants to drive your auto every Friday to go grocery shopping, update your policy to include him or her as an occasional driver.

The person who borrows your auto must be licensed and legally allowed to drive in the province or territory where you both live.

When you lend your vehicle, remember that you also lend your insurance record.
Sr. Member
Aug 7, 2014
563 posts
235 upvotes
The claim resulting from A's accident goes against B's (i.e., car owner's) insurance in your 2 examples.
Deal Fanatic
User avatar
Aug 11, 2008
8959 posts
1501 upvotes
Ontario
Keep in mind that if you lend your vehicle to anyone and they have an at fault accident, your policy will see the result of the at fault plus the driver could be rated for it as well if they have their own ins policy too. The claim will be paid under the policy that insures the vehicle.
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Fanatic
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Mar 17, 2006
6884 posts
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Burlington
I called my Desjardin last year to inquire about this because we had the in-laws coming over from Calgary and they would be driving our vehicles.

My insurance said: As long as my in-laws have their own insurance In Calgary, and with the in-laws agreeing, any accident would go onto their record and my premium would not be affected. Any insurance dealings and costs would be between my in-laws and the other party if accident happened. However within the next 6 years, if my in-laws decide to stop driving all together, cancel all of their auto insurance, that accident record would go back on to mine. It is a good option if this is within family. Friendship can break over this though I can see.

I also asked another question about my parents coming from oversea, and my insurance told me straight out No. As in, I shouldn't let them drive my cars, nor they would offer insurance for short-term visitors. Any accident while they are driving would be too complicated to deal with.
Deal Fanatic
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Aug 11, 2008
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Ontario
my pleasure!
RIBO LICENCED INSURANCE BROKER, over 35 years experience
Deal Fanatic
User avatar
Aug 11, 2008
8959 posts
1501 upvotes
Ontario
you are most welcome!
RIBO LICENCED INSURANCE BROKER, over 35 years experience

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