Kanetix Forum

If my friend is driving my car, and he gets in an at fault accident while driving my car, whose insurance is liable?? And would this reflect on my insurance rating??

While you can allow anyone that has a valid licence to borrow your car, if they get in an accident with your car, it's your auto insurance policy that will respond and provide coverage. Basically, if you lend your car, you lend your insurance. Even if that person has their own insurance coverage, if they are driving your vehicle, your policy is responsible.

If a friend gets into an at-fault accident with your car, it will reflect on your insurance rating, meaning your insurance rates will likely go up; unless it can be proven that your friend is being charged for the accident on his/her current insurance policy. While highly unusual, it may be possible at a later date (usually when the borrower is renewing or initiating a new policy) to "transfer" the accident claim so that it is rated on their policy and not yours. In this type of situation it's best to contact an insurance broker or agent as it requires a fair bit of communication, and agreement, between the two insurers.

Hope that helps!

Sean Graham, Principal Broker at KTX Insurance Brokers.

Neither Kanetix® nor the KanetixForum.ca is an insurance broker or agent. Although this information has been passed along to you from KTX Insurance Brokers through the Forum, we are not responsible for the opinions expressed by them. Insurance can be complicated. When reading these answers, keep in mind each person¿s situation is unique. Individual responses may vary depending on your insurer, geographic location, and specific circumstances. If you have a similar situation, always speak with your insurance provider, or a licensed insurance representative, for terms and conditions that may apply to you.

You may want to check out this article from the Kanetix website as well:

• To lend, or not to lend your car?

Found some more information on this topic. You might find it helpful. It is a video on the Insurance Bureau of Canada's website. Actually there are several videos at this link you might find handy.

• You wanted to know...

I found a couple more pieces of information that may help you. Keep in mind that these are province-specific:

British Columbia:
In the claims section of the ICBC site there is information you may find handy if the person who you lent your car to is at-fault at:

http://www.icbc.com/claims/determine-fault/youre_fault

or if fault is shared or undetermined at:
http://www.icbc.com/claims/determine-fault/shared_undetermined

Alberta:
In the FAQs section of the Automobile Insurance Rate Board website, you'll want to check out question number 11 and the answer provided. It can be viewed at:

http://www.airb.alberta.ca/drivers/faq.aspx

Ontario:
In the FAQs section of the Financial Services Commission of Ontario website, there's some information about lending your car at:

http://www.fsco.gov.on.ca/english/about/faqs.asp#p
(It's the last bullet that you'll want to refer to under the Automobile Insurance heading.)

I'll keep looking around online for information about the remaining provinces. If I find some I'll be sure to post it too.