Think Before You Lend: Your Car, Your Responsibility—Assess Risks Before Handing Over the Keys. Insurance Follows the Car, Not the Driver—Make Sure You're Protected Before Letting Someone Else Drive.
When you lend your car to another person, it is a big exercise in trust. Apart from your home, your car is probably the most expensive possession you have. So, before letting anyone in the driver's seat, think again.
You may be under the impression that if someone wants to borrow your car, it is all a matter of how much you trust him/her. But, in reality, there is so much more to consider.
When someone borrows your vehicle, you are exposed to a lot of liabilities, even when you are not in the driver's seat. The insurance of a car is attached to the vehicle itself and not the person driving it. So, effectively, if your friend was using your car and he/she gets involved in an accident, your motor insurance policy will cover the damages as per the terms and conditions. You will be responsible for paying the deductibles and depreciation of replaced car parts, if applicable.
But what if your friend was not at fault in the accident? In most cases, you will be able to raise a claim under the liability insurance of the third party involved in the accident. However, make sure that you are well aware of the clauses in your insurance policy so that you can make judicious decisions at a taxing time.
Listed below are some of the questions you should ask yourself when lending your vehicle to another person:
Last, but not the least, ask yourself this question as you would not want to get your vehicle back with a pile of fast food containers in the back seat!
You should also keep the following things in mind when lending your car:
Remember, when you are lending your vehicle to someone else, you are also lending them your car insurance policy. In order to stay safe from legal obligations, ensure that you are covered on all fronts by asking yourself the above questions and taking the necessary steps.
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