20 Jan Lending your vehicle: What happens if an accident occurs
It is common practice to lend our vehicle, whether it is to a friend to help them out for a few hours or to a member of our family. You have probably wondered what would happen if this person ever had an accident.
So today we will unravel the mystery. First, yes, you can lend your car to someone if the driver has your permission and has a valid driver’s license.
In the event of an accident
If an accident occurs, you will be compensated according to the coverages included in your contract.
No fault accident
If the person to whom you have lent your car is NOT at fault for the accident, you will be reimbursed for the damage incurred, even if you only have a liability coverage.
At fault accident
If, on the contrary, the person IS responsible for the accident, you will only be compensated if you have taken out insurance for damage to your vehicle.
Who should pay for the damages?
If you are wondering if it is possible for the driver’s insurer to whom you have lent the vehicle to pay for the damages, yes, it is. However, only if the latter has added to their contract the QEF 27 endorsement (civil liability resulting from damage caused to vehicles of which the named insured is not the owner).
The claim could then be made to either of the insurers and, regardless of the choice, the accident will still be attributed the person who was driving at the time of the accident.
| In closing, if someone living with you permanently uses your vehicle (a spouse, for example), it is preferable to notify your insurer, who will add them to your file as an occasional driver. |
Jackie Beaudoin, Leclerc Insurance and Financial Services
Source : Info Assurance