If a friend asks to borrow your car, you may be tempted to agree and hand over the keys. There are, however, some car insurance risks that you need to be aware of before letting someone else get behind the wheel of your vehicle. Take it from the car insurance brokers at Ken Maynard Insurance Brokers Ltd.: while there's nothing wrong with wanting to lend your car to a friend you trust, you should give it some thought first.
When you lend your car to someone else, you are also lending out the insurance policy that covers your car, which could signify a financial risk for you. If your friend has an accident while driving your vehicle and is found to be at-fault, then your car insurance premiums could go up as a result.
Have you worked hard to keep a good driving record and bring down your premiums over the years? If yes, you should ask yourself if you want to take the risk of someone else causing them to jump up. If your premiums are high already, then you may not be able to afford an increase.
Before deciding to lend out your car, make sure you know the kind of driver your friend is. You can rest easier if you know them to be careful and responsible, but you should decide against lending if you know them to be reckless, prone to speeding, and prone to not paying attention.
You also must absolutely ensure that the person who will be borrowing your car is fully licensed to drive. Your car insurance policy will cover any licensed driver using your vehicle, but may not apply if you make a claim for an accident involving an unlicensed driver. If you can't trust or confirm that your friend is licensed, then lending out your car is not a good idea.
You should also try to have a basic idea of where they are going and how they plan to use your car. You don't need to know every detail, but the two of you should have some agreement about the use of your car beforehand.
If you do decide to lend your car, then make sure that your registration and car insurance details are in the glove box so that you don't leave your friend in a tight spot if something does happen. If you find yourself lending your car out to this person quite frequently, then you should have them added to your car insurance policy.
If you do decide to lend your car, then make sure that your registration and car insurance details are in the glove box so that you don't leave your friend in a tight spot if something does happen. If you find yourself lending your car out to this person quite frequently, then you should have them added to your car insurance policy.
If you're looking for flexible, affordable car insurance and insurance brokers who will take the time to answer any of your questions, then don't hesitate to contact Ken Maynard Insurance Brokers Ltd.