Should you ever lend your car to someone?

Posted on 31 January, 2013

Driving a car without insurance is a serious offence, and if caught the probability of losing your driving licence is high. But did you know you could lose it even if you were not driving your car? If you let someone borrow your car, and that person, turns out to be uninsured then you will face charges for allowing a car without insurance to be on the road. And in most cases, you would be guilty of the offence, and as a result, your driving licence could be suspended or terminated altogether.

You may have thought the driver to be trustworthy when he informed you that there was insurance in place. But even telling the magistrate this while swearing with everything that is holy to you, would make no difference. And even though you are shown some little leniency, you could still find yourself convicted of a criminal offence. But it may be true the driver thought he was insured. Most people believe that if they have a fully insured coverage for another car, any car they drive will also be insured.

While this may hold true for some car insurance companies, some do not allow it or may have some strict conditions. More often, drivers under a certain age limit, especially the younger drivers with a learner’s licence, are excluded. When you allow a person to borrow your car, you lend your car insurance as well. In other words, when you lend your car, it is your car insurance UK policy that provides coverage in the event of an accident—not his.

The accident could go under your insurance history and may result in a premium increase for you especially if your car would be involved in at-fault accident. If you lend your car to a friend on a regular basis, he/she may constitute an “occasional” driver on your car insurance plan. This way, he will have to be insured to use your car, and you won’t be on the hook for thousands of pounds of damages. If your friend uses it rarely, there is no need to include them in your insurance plan.

Matters, however, can get out of hand if your friend doesn’t have a valid driver’s licence. In such event, your car insurance policy will not cover you, and you’ll have to pay for the damages. In addition, if your friend drives the car under the influence, and is involved in an accident, your driver ratings and insurance policy are affected. As a result, the Driving under the influence (DUI) will be reflected on your driving record, and this could potentially limit where you can obtain your car insurance.

In some cases, your car may be involved in a serious accident and the policy limits aren’t enough to cover the damages. In such cases, you will be liable for the excesses. But for any questions regarding your insurance policy, it’s good to contact your insurance provider. In case you are not covered, get an insurer as soon as possible. The Internet is a good place to start searching for cheap car insurance services, compare the car insurance quotes online to ensure you get the best quote.

Imagine having kept your premiums down and maintaining a good record, and then suddenly someone else’s accident is tarnishing your record and driving up your premiums, not good, right? An accident is always unpredictable, that’s why it’s called an accident. You cannot know what will happen if you lend your car to somebody—be it a family member, a close neighbour or someone significant. The bottom line; don’t give anyone those keys unless you are sure they are competent behind the wheels.