If you’ve ever wondered if you can drive your friend’s car in Ontario, this is a common question we get asked — and it’s a good one too! Whether you need to borrow someone else’s vehicle or lend out your own, it’s essential to comply with the law and understand auto insurance’s rules and implications. In this post, we answer some frequently asked questions to ensure you have the knowledge you need to borrow or lend your vehicle safely.
Before You Lend Someone Your Keys
Borrowing or lending a car is not just about practicality; it’s also about trust and clear communication. Legally, you must have explicit permission to drive someone else’s car, ensuring their insurance coverage applies. Beyond the legal aspect, lending a car involves a level of personal trust, as any claims will impact the owner’s insurance record. Taking these precautions can help avoid unnecessary disputes and foster responsible decision-making on both sides.
Can you Drive a Car Under Someone Else’s Insurance?
Yes, you can drive someone else’s car in Ontario. When they lend you their vehicle, they also lend you their insurance coverage. As long as you have permission, a valid license, and drive responsibly, you can borrow it.
If you frequently drive someone’s vehicle, it’s a good idea to be added as an occasional or secondary driver on their policy; otherwise, insurers may deny coverage in case of a claim.
While borrowing a car for one-off errands or emergencies is generally covered under the owner’s insurance, regular use is a different matter. Insurers expect frequent drivers to be listed as secondary or occasional drivers on the owner’s policy. For example, if you regularly commute to work in a roommate’s car, their insurance company may require you to be added to the policy to ensure adequate coverage. Failing to disclose this arrangement can lead to denied claims or even policy cancellation for misrepresentation. Clarifying your role as a borrower with the car owner and their insurer is essential for maintaining proper coverage.
Common Misconceptions About Borrowing Cars
Many people assume that their personal auto insurance will cover them when driving another person’s car. However, this is not always the case. In Ontario, the owner’s insurance policy is the primary coverage when their car is borrowed, while the borrower’s own insurance (if applicable) acts as secondary coverage in specific situations.
It’s also a common misconception that borrowing a car is similar to renting one. Rental vehicles often require additional coverage through the rental company or a personal auto policy, making them distinct from borrowing a friend’s car for temporary use.
Who Can Drive my Car Under my Insurance in Ontario?
Your auto insurance will cover someone else if:
- They have your explicit permission.
- They have a valid license. Keep in mind that Ontario has a graduated licensing system, so ensure their classifications allow them to operate your vehicle.
- They are not an excluded driver on your policy.
- They drive responsibly.
- They do not use your car for illegal activities.
- They adhere to the rules of your policy agreement.
Who’s Responsible for an Accident?
If you drive someone else’s car in Ontario and get into an accident, you’re both held responsible. For example, say your friend lends you their car, and there’s a collision:
- Your friend’s insurance will cover it. They will need to file a claim, which will show on their record.
- You will be listed as the driver involved in the accident. This could impact your premiums if you’re shopping for auto coverage or your current insurance company performs a check.
It’s important to note that if the accident claim exceeds your friend’s coverage, you’ll be responsible for paying the excess amount yourself. You can get extended auto insurance coverage with an umbrella policy to protect you from paying this outstanding amount out of pocket.
Consider Your Insurance Policy
If you frequently lend your car or worry about potential out-of-pocket costs after a serious accident, consider an umbrella insurance policy. This type of coverage supplements your auto insurance by extending liability limits, offering extra protection against costly claims. For instance, if an accident leads to damages that exceed your primary policy’s coverage, the umbrella policy can cover the difference. It’s a worthwhile consideration for car owners who regularly lend their vehicles or want additional peace of mind.
When Am I Not Covered Through Someone Else’s Insurance?
While, in most cases, you can drive your friend’s car in Ontario, their insurance may not cover you for the following reasons:
- If you’re driving under the influence
- If you’re an excluded driver on their policy
- If you never received permission
- If you don’t have a valid license
Special Situations and Exceptions
While borrowing a personal vehicle is straightforward in most cases, special situations can complicate coverage. For example:
- Commercial Vehicles: Borrowing a work truck or company car may not fall under the owner’s personal auto policy.
- Car-Sharing Services: Platforms like Turo or Zipcar often have their own insurance requirements and policies, which may override standard personal coverage.
- Out-of-Province Driving: If you borrow a car and drive across provincial or international borders, confirm the owner’s policy covers travel in those areas.
These unique situations require extra diligence to avoid gaps in coverage.
Tips for Safe Borrowing and Lending
To ensure a smooth experience when borrowing or lending a car, consider these tips:
For Borrowers
- Always inspect the car for existing damage before driving.
- Confirm the vehicle is insured and that you have permission to use it.
- Avoid activities that could void coverage, like driving under the influence or using the vehicle for commercial purposes.
For Lenders
- Verify the borrower has a valid license that is appropriate for your vehicle type.
- Communicate any specific restrictions, such as avoiding highway driving or long trips.
- Consider setting boundaries to protect your coverage and ensure your car is returned in good condition.
When in Doubt, Talk to Your Broker
At Rowat Insurance, we’re here to answer your questions and help you understand the ins and outs of auto insurance — we know it can be confusing at times! If you frequently borrow or lend a car, need additional coverage, or are simply on the hunt for a new policy, our team is here to help. Contact us today so we can help you find the right policies and rates to suit your unique needs.