In collaboration with Promutuel Insurance
You’re coming from a party where alcohol was flowing freely and have decided to let your sober friend drive you home safely in your car. Bad luck! You and your designated driver accidentally end up in a ditch after too quick a move.
Unfortunately, your friend doesn’t have insurance! Will you be compensated for this accident? It depends! The answer is not as simple as you might think.
Clarification is required
In Québec, before lending your car to a friend, it’s essential to take a few precautions to ensure the safety of road users. First, check that the person has a valid driver’s licence and is fit to get behind the wheel. Otherwise, even a minor incident could jeopardize the compensation provided for in your insurance policy.
Next, we strongly recommend that you inform your friend of your insurance coverage, discuss the amount of your deductible with them, and determine who will pay this cost in the event of an accident. Clear communication will avoid misunderstandings and potential conflicts later on.
Understanding your insurance policy is critical!
Did you know that the insurance policy that covers your vehicle also covers the people who drive it, subject to applicable conditions, limitations, and exclusions? There are, however, some subtleties that warrant special attention when lending a vehicle. For example, if your insurance covers only third-party liability (does “one-way insurance” sound familiar?) and the driver is entirely at fault for an accident, your insurance will not cover damage to your vehicle. You should therefore be thoroughly familiar with your insurance coverage and not assume that it will cover all situations.
And keep in mind that if a loved one is involved in an accident while driving your vehicle, you could still face a premium increase if your insurer has paid you compensation.
Lastly, remind the driver that in the event of an accident, they must duly gather the information needed to identify all those involved, otherwise it could be considered a hit-and-run, a case that is inadmissible under your insurance policy if you don’t have “comprehensive” or “collision or upset” coverage.
On the road
Are you the person who needs to borrow or rent a vehicle? We strongly recommend that you contact your damage insurance representative to assess your needs and possibly add Endorsement 27 – Civil liability resulting from damage caused to vehicles of which named insured is not owner to your basic insurance coverage. That way, if you’re at fault for an accident involving a vehicle that is not your own, you may be covered by this endorsement, subject to the conditions, limitations, and exclusions of your policy.
Are you going on a road trip with your friends this summer and planning to switch drivers several times along the way? Before you drive someone else’s vehicle or lend your vehicle to a friend, make sure you’re thoroughly familiar with the coverage, limitations, and exclusions of your car insurance policy, so you can travel with complete peace of mind. Keep in mind that in some cases, your insurer must be informed in advance of the identity of other drivers.
Drive safely!
