When you get behind the wheel of a car that isn’t yours, that you don’t pay for, and that you’re unfamiliar with, it’s normal to feel a bit uncertain. It’s why so many people do a quick search to find out if they can drive someone else’s car and whether they’ll be insured. In fact, that may be why you’re here right now.
Fortunately, this article answers the common questions drivers have about lending a car to a friend or driving someone else’s car in Canada, and the impact it has on car insurance. As always, it’s important to review your policy documents or contact your insurance provider or broker if needed, since terms and conditions can vary between policies.
Can a friend drive your car?
Yes, your friend can drive your car in Canada, even if they aren’t listed on your insurance. In order for them to legally drive your car:
- They must have a valid driver’s license
- Your car must have valid insurance (mandatory by law)
When you drive someone else’s car with their permission and a valid driver’s license, this is called “permissive use.” With permissive use, the owner of the car’s insurance policy will typically extend to cover you in case of an accident or other covered incident.
You might ask, “Why not use my insurance?” The reason is that in Canada, car insurance is tied to the vehicle, not the driver. This means when you drive someone else’s car, their policy applies, not yours. This structure ensures that each vehicle on the road has adequate coverage based on its own characteristics, like its condition, safety features, and value.
Does car insurance cover other drivers?
Yes, your car is usually insured if you lend it to a friend with a valid driver’s license, provided they have your permission and comply with the terms of your policy. In other words, your friend is typically covered under your insurance if they are an occasional driver using your car under permissive use.
That being said, there are situations where you may need to add someone to your insurance:
- If they drive your car frequently, not just occasionally
- If they live in your household
- If they are considered a primary or secondary driver of your vehicle
Adding them to your policy as an occasional driver reduces risk, making sure that both you and the driver are properly covered.
What happens if someone else is driving your car and gets in an accident?
If you let someone else drive your car and they get into an accident, here are the steps to follow:
Safety first: The driver should make sure everyone involved is safe, move to a secure location if possible, and call emergency services if needed.
Notify authorities: The driver should contact the police if required by law, if there are injuries, or if there appears to be significant damage.
Exchange information: The driver should exchange insurance and contact details with any other involved drivers. Speaking with witnesses, if any are present, can also help if you choose to file a claim.
Document everything: The driver should take photos of the vehicle(s), damage, and the accident scene to provide clear evidence.
Proof of permission: As the car owner, save any text, message, or voicemail that shows you gave the driver permission to use your car. This can help if there are questions about permissive use.
Contact your insurance provider: As the owner of the vehicle, you should notify your insurance provider about what happened. Even if you haven’t decided whether to file a claim or not yet, the terms and conditions often require prompt reporting to avoid complications.
Make a decision about filing a claim: Get an estimate for the repairs. If the cost is less than your deductible, you’ll pay out-of-pocket rather than file a claim. If it’s more, you may want to proceed with filing a claim. Just remember, as the policyholder, you’re responsible for paying the deductible. While you can try to arrange repayment from your friend, your insurer considers you fully responsible for the claim.
Be prepared for what’s next: The accident will typically be recorded on your insurance record, since coverage is tied to the vehicle rather than the driver, and you’re the owner of said vehicle. That said, don’t be surprised if the price you pay for car insurance the next time your policy comes up for renewal or you shop around seems higher than you’re used to.
What to do before you lend someone your car
Before lending your car to a friend, it’s a good idea to take a few precautions. This helps reduce uncertainty and makes sure you and your friend are both protected.
- Confirm your friend has a valid driver’s license
- Check your insurance policy for any restrictions or exclusions
- Set expectations about how long and where they’ll be driving
- Keep proof (such as a text or message) that shows you gave them permission
Can I drive someone else’s car with my insurance?
If we flip the narrative, you may be wondering, “Can I drive someone else’s car with my insurance?” In Canada, your own car insurance doesn’t apply when you drive someone else’s vehicle. As long as you have their permission and a valid license, their insurance typically covers you.
It is always a good idea, though, to ask the owner about their coverage first before you get behind the wheel. Some policies may have restrictions on permissive use or exclude certain drivers. Knowing this ahead of time means that you won’t be left unprotected if something happens.
