This is a common question that most vehicle owners ask when purchasing insurance for the first time. Letting a friend or family member borrow your car to run a quick errand is not out of the ordinary, even if they are not named on the vehicle. Their car might not be available for whatever reason, or they might need something with bigger trunk space. Whatever the case, you’re still left to wonder if they are covered or not.
Navigating through insurance jargon can be complicated at times. The answer to this question can be a little complicated. But in most instances, a car insurance policy is given for a specific vehicle based on its unique vehicle identification number (VIN). But there are unique cases where coverage extends to the driver when they use another person’s vehicle.
The question of whether someone is insured or not usually has to do with the legality of driving someone else’s car. It is lawful to drive someone else’s vehicle! As long as they have given you permission to do so and you have told them when, where and for what use you will be using their car. Your insurance will cover the car, as long as they are just using the car occasionally.
When you drive someone else’s car, their auto insurance covers you as long as:
- You have a valid Canadian driver’s license
- You are using the vehicle with the owner’s permission
- You have not committed an offence under Canada’s Criminal Code while you are operating the vehicle
- Don’t use the car for one of the uses prohibited within their insurance policy (for example, racing)
- And if you are not specifically excluded from driving their vehicle
Table of Contents
Car Insurance Applies To The Car
An insurance policy refers to the specific vehicle when you sign up for coverage. It is the law to insure any car that you will be driving on public roads. Standard auto insurance policies follow the car, not the person driving it. If someone other than the owner of the car or the person who is named on the car insurance policy, borrows the car and gets into an accident, the insurance company will pay for the damages in most cases. This is only if the car is being driven in a lawful manner. In cases where the car is stolen, the person driving it doesn’t have a license, or if it is being used for an illegal activity, the coverage will most likely be voided.
In cases where you are letting someone else drive your car on a regular basis, as in daily for commuting to work or school frequently, then you will need to add this person onto your insurance. Most insurance companies view occasional use and regular use two different scenarios, which require different conditions or outcomes.
Impacts On Your Auto Insurance Premium
When you share your car with another person, you also share your auto insurance. If they are involved in a collision and are at fault, then your insurance will cover the damage. However, your insurance premiums will most likely rise, especially when it comes time for renewal.
If you find your insurance premium constantly going up, you can shop around for a new policy from other providers to see if you can get covered for less.
When To Add Another Driver To Your Car Insurance Privacy
You will need to inform your insurance company about another driver who uses your car regularly. For example, someone who uses your car once every few months will not be considered a regular user. But if you have a friend or family member who uses it every Tuesday to run errands, then that is considered a regular driver, and they will need to be added to your policy. Adding them requires their personal information and driving history. If your insurance company views their driving risk escalates the overall risk, you should expect to pay more to cover them. If your premium goes up, again, you can and should explore other options and other auto insurance providers to compare rates.
Non-Owner Coverage
You can also modify your car insurance policy to give a driver the same policy they have on their own car when they drive other cars, like rentals. This is called “non-owner coverage” and it is available as a stand alone policy for those residing in British Columbia, Saskatchewan and Manitoba. However, if you live in Ontario, you can only purchase this type of insurance as an add-on to your auto insurance policy. If you drive borrowed or rented cars on a regular basis, you might want to consider this type of insurance if you would like more liability coverage. This type of insurance can also be beneficial if you regularly visit other provinces and borrow friends’ cars. Work out to see how much it would cost you to pay out of pocket damages if you should get into a car accident in someone else’s car. It usually is a lot more expensive than paying for insurance. In this case, getting additional non-owner coverage would be the best option.
Before driving someone else’s car, make sure they give you a copy of their insurance policy/their insurance policy card before you get on the road. Don’t feel ashamed or uncomfortable asking them for proof of insurance, because it will protect you and the owner in the long run. In addition, the owner of the vehicle is responsible to ensure their vehicle is being used in a lawful and responsible manner. If they do not want to show you proof of insurance, this is an indication you should think twice about driving their vehicle.
