Occasional driver insurance: Can you lend your vehicle safely?

Letting someone you know borrow your car or driving a vehicle that isn't yours might seem harmless—until an accident happens and gets added to your insurance history. Which insurance company handles the claim, the owner's or the driver's? Does occasional driver insurance coverage apply? Knowing the answers to these questions can help you avoid big headaches.

Every driver needs to be properly identified on the insurance policy. Here's how to tell who's who.

The primary driver uses the insured vehicle the most. Their profile is the main factor used to calculate the insurance premium. There can't be more than one primary driver listed on the same car.

An occasional driver uses the vehicle less frequently than the primary driver. If a couple regularly uses the same car, one of them will be designated as the primary driver, while the other will be listed as an occasional driver. It’s important to note that all drivers listed on the policy get the same coverage. In some cases, insurers may consider an occasional driver's profile when calculating the insurance premium.

It's important to disclose all the drivers who use the vehicule on your car insurance policy. The insurance provider determines whether someone is considered the primary driver or an occasional driver based on how often they use the car. If you don't list all drivers or how your car's actually being used, your insurance payout could get reduced—or even denied—when you file a claim.    

Does someone else drive your car from time to time? Add them to your policy. This step ensures that everyone involved is properly protected and helps reduce the risk of complications when filing a claim.

If someone borrows your car just once (like if their vehicle is at the garage), you don’t usually need to add them. But you should make sure they have a valid driver’s licence and are only using your vehicle for personal purposes, not commercial ones. 

When someone borrows your vehicle, they also borrow your insurance. So if you have any questions at all, it’s a good idea to talk to your insurer.

In most cases, a car insurance policy follows the vehicle—not the person behind the wheel. Let's look at a few real-life examples to clarify how it works.

If you lend your car to someone else, like your child or a friend, your insurance policy still applies—even though you're not the one driving. However, it's important to inform your insurance advisor of all the drivers who use your vehicle. If you don't, your coverage could be restricted, or you might have issues with future claims.

Wondering if you can drive someone else’s car? The answer is yes, as long as you have a valid driver’s licence. The car owner and policyholder is required to confirm that anyone who borrows their car has a valid licence. When you borrow someone else’s car, the owner’s car insurance policy applies.  

Keep in mind:

• The car owner has to inform their insurance provider that someone else—in this case, you —is driving their vehicle. This is an important step that can help prevent unpleasant surprises if anything happens.

• Before taking the keys, agree on who will cover the deductible. In the event of a collision, the deductible listed in the policy typically has to be paid, no matter who was behind the wheel.

• Make sure the car owner has valid insurance. If you have your own insurance with Endorsement 27 (available in certain provinces), it could cover physical damage to a borrowed vehicle.

Whether you already have insurance or not, it’s worth taking a moment to understand the coverage options available when you rent a vehicle.

You don’t have car insurance

For short-term car rentals, you must have the mandatory liability coverage, plus coverage for the physical damage to the vehicle. If you don't have a policy of your own, the rental agency will usually offer you the option to purchase coverage for the rental period.

You have car insurance

If you're planning to rent a car and you already have auto insurance, you may want to consider Endorsement 27. It can cover any physical damage that may occur to the rental vehicle that might not otherwise be covered. Alternatively, consider buying a collision damage waiver from the rental agency.

Car-sharing services are a convenient solution if you don't own a personal vehicle. It's a good idea to review the types of coverage that are included (and which aren't) before you get behind the wheel.

• Liability 
  Most car-sharing platforms include basic liability insurance. This coverage protects you against damage you may cause to others, including injuries and property. But keep in mind that it doesn't cover physical damage to the vehicle you're driving.

• Vehicle damage protection 
  Some companies offer additional coverage for vehicle damage (collision, theft and vandalism), but these options are often limited and/or come with a high deductible. It's a good idea to read the terms and conditions carefully before opting for this coverage.    

If a collision occurs involving a borrowed or loaned vehicle, several factors come into play. Here’s an overview of the key elements to consider.

In general, it's the vehicle owner's insurance that covers the damage, based on the protections included in their policy. But, if the driver wasn't declared to the insurer, the compensation may be reduced or the claim may be denied.

Filing a claim can lead to higher premiums, even if the vehicle’s owner wasn’t the one driving.

If the driver is found to be at fault, the collision will become part of their insurance history, and that can affect their insurance record and result in higher insurance rates in the future.

• Driving without permission: If someone borrows an insured vehicle without the owner’s consent, the insurance company may refuse to cover the damages. 

• Impaired driving: In cases where the driver was under the influence of alcohol or drugs, the insurer could deny compensation and legal consequences could ensue.

It’s up to the insurer to determine whether a person is the primary driver or an occasional driver, based on how often they use the vehicle. This distinction is important as it affects coverage in the event of a claim.

That’s why you’re required to disclose all the drivers who use your vehicle, including members of the household like your child, partner, roommate, parent, etc. Your insurer will assess the driver’s risk profile and decide whether they need to be added to the policy.

It’s always better to be safe than risk losing coverage in the event of an auto claim. It’s also good to know that adding a driver can affect the cost of your premium, depending on the driver’s profile, age, driving experience and driving history.

You may also wonder how many occasional drivers you can add to your insurance policy. There’s no strict limit, but you’re required to disclose all drivers who may operate the vehicle.

Keep in mind that you're usually covered if you lend your insured vehicle or borrow a vehicle. It's your responsability to determine the coverage in your policy and ensure it's up to date. So if you're going to lend your car to someone, make sure they have a valid driver's licence. And if you're borrowing a vehicle, always check to make sure it's insured.

Want peace of mind wherever you go? Get a personalized car insurance quote and choose comprehensive coverage that fits your needs. You can also explore offers that could help lower the cost of your car and home insurance.

To get personalized advice and find out if occasional driver insurance is fight for you, talk to your insurance provider.

Desjardins Insurance refers to Desjardins General Insurance Inc. in Quebec and Certas Direct Insurance Company or Certas Home and Auto Insurance Company in other provinces. Certain conditions, exclusions and limitations may apply. Rates and discounts are based on each client's profile and are subject to eligibility conditions. The terms and conditions of the coverages described are set out in the insurance policy, which always prevails. Desjardins^®, Desjardins Insurance^®, all trademarks containing the word Desjardins, as well as related logos are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.

These tips are provided for informational purposes only. Contact an agent for tailored advice.

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