What should I know before I lend my vehicle to someone?
You may not know that when you lend your vehicle, you're also lending your insurance. That's because any claims will be made through your insurance, not the driver's.
For that reason, your policy requires that the driver you're loaning the vehicle to be qualified and/or licensed to drive, depending on the province. Additionally, the same rules outlined in your policy apply to the other driver. For example, if your policy only allows personal use, the person borrowing your car cannot use it for deliveries or Uber.
If you routinely loan your car to the same person, you should name them on your policy as an occasional driver, too.
Does my auto insurance provide any coverage when I drive someone else's car?
If you are driving someone else's car, their insurance covers you while you are driving their car, as long as you:
Have a valid Canadian driver's license (travelers from outside Canada need to check with the regulatory body of the province(s) they will be driving in)
Are using the vehicle with the owner's permission
Haven't committed an offence under Canada's Criminal Code while operating your vehicle
Don't use the vehicle for one of the uses prohibited in their policy (for example, no racing)
Are not specifically excluded from driving their vehicle
If you have an accident while driving someone else's car, you'll need to present proof of insurance. It's a good idea to make sure you have this available to you before borrowing a car.
If the car's owner doesn't have insurance, there is coverage under your own policy to protect you*. There are some criteria to be met; coverage won't extend to a vehicle owned by someone else in your household. Not all coverages on your own vehicle are provided and, while the covers vary by province, third party liability cover extends in all provinces.
*In Quebec, this coverage must be purchased as an add-on.
Auto Insurance