Whether your buddy needs to borrow your pick-up truck to move his couch or your daughter wants to drive your car to her college class twice a week, it’s not uncommon to want to lend your vehicle to another driver from time to time. But what happens if the person you lend your vehicle to gets into a collision? And how many times can you lend your vehicle to someone before they need to be a listed driver on your car insurance policy? We’ve got answers to your questions.
Will my insurance policy still cover damage to my car if someone else is driving?
Generally speaking, your insurance policy should cover damage to your vehicle when someone else is driving it. However, in B.C. you are required to list anyone else who drives your vehicle on your insurance policy.
In September 2019, car insurance in B.C. moved to a model that’s more driver-based. This means each driver’s experience and accident history now plays a bigger role in determining premiums. Review your ICBC policy documents or contact CapriCMW if you have questions about listing drivers.
If I lend my car to another driver and they get into a collision, will it affect my car insurance coverage?
One of the most common myths about car insurance goes something like this: “If my friend borrows my car and gets into a collision, it won’t affect my insurance.” Unfortunately, this is false. Under B.C.’s driver-based insurance model introduced in 2019, at-fault crashes will affect the record of the driver who caused the crash, not the owner of the vehicle. However, if the driver who caused the crash isn’t listed as an additional driver on the insurance policy, the owner of the vehicle will have to pay a one-time additional premium.
When does someone need to be listed as a driver on my car insurance policy?
Everyone who drives your vehicle should be listed on your policy. Knowing who will drive your vehicle helps ICBC to accurately assess the risk and ensure the right person is held accountable in the event of an at-fault crash. Listed drivers can be added or removed at any time by visiting an ICBC broker office.
If you want the flexibility to be able to lend their car occasionally to a driver not listed on your policy, Unlisted Driver Protection can be added to your policy. This new coverage protects you from a one-time financial penalty should an occasional driver, not listed on your policy, causes a crash in your car. ‘Occasional use’ is up to 12 days in a year, per driver, in any vehicle owned or leased by the registered owner, lessee or principal driver.