damaged car and man filling out clipboard

In Ontario, it is legal to lend your car to someone else. Be aware, however, that when you lend your car, YOU ARE ALSO LENDING THE DRIVER YOUR CAR INSURANCE.

If a car is lent on consent and is involved in a collision for which the driver of your car is deemed at fault, your car insurance premiums may be subject to increase. As such, only lend your car to trusted drivers and in exceptional circumstances.

Some helpful tips when lending your car:

  1. Clearly discuss the circumstances under which you are consenting to the use of your car.
  2. Know the driving history of the person you are lending to.
  3. Ensure the person has a valid driver’s license.
  4. Ensure the person is not under the influence of drugs or alcohol.
  5. When lending your car regularly, add the person as an occasional driver on your insurance policy.

In a situation when your car is taken without your consent, you are not liable for a collision.

Section 192 (2) of Ontario’s Highway Traffic Act states: “The owner of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway unless the motor vehicle or street car was without the owner’s consent in the possession of some person other than the owner or the owner’s chauffeur.” This means that if you lend your car and the driver is involved in a collision in which the driver is deemed at fault, you could be subject to a lawsuit for personal injury as the owner of the car.

If you or someone you know has been involved in an accident, call JEWELL RADIMISIS JORGE LLP for a free consultation.
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