If you own a vehicle, then chances are that friends and family ask if they can borrow it from time to time. You might want to help them out, but you're unsure how lending your vehicle could affect your insurance. Who better to ask than the experienced Edmonton auto insurance brokers at Merit Insurance Services Ltd? Here is everything you need to know about lending your vehicle and how to do it right.
What Happens to My Auto Insurance When I Lend My Vehicle?
When you lend out your vehicle, your auto insurance policy will remain in effect just as if you were the one driving. It will cover any insured damages should the driver get into an accident with your car. However, keep in mind that there is a risk your insurance premiums will go up as a result of the accident, especially if the driver of your car is found to be at fault.
Things to Keep in Mind Before Lending Your Vehicle
Because someone else's actions while driving your car can impact your Edmonton vehicle insurance premiums, it is important to take some precautions before lending it out. First, ensure that your friend has a valid license, as your policy will not cover damages incurred by an unlicensed driver. Make sure that you also know where they plan to drive and what they intend to use your vehicle for.
In the end, it comes down to trust. If someone refuses to show you their license or tell you what they plan to use your vehicle for, or if they don't have a great driving record, then it will likely be in your best interest not to lend them your car.
If you do make the choice to let someone borrow your vehicle, make sure that you provide them with your registration and insurance details in case they get into an accident or get pulled over.
What is an Occasional Driver and How Do I Know If I Should Add Someone to My Policy?
If someone uses your vehicle on a regular basis, then you may want to add them to your Edmonton auto insurance policy as an occasional driver. This is important for allowing your insurance company to adequately assess risk and not to jeopardize your coverage. An occasional driver is typically someone who uses your car a few times a month, though you should always call and ask your insurance broker what they consider to be an occasional driver.
Get Flexible and Affordable Vehicle Insurance Rates in Edmonton
Lending out your car is far less stressful once you've taken the proper steps to manage any risk involved. The first step is to have vehicle insurance in Edmonton that provides you with the right type and level of coverage for your needs. Merit Insurance Services Ltd has you covered with personalized policies suited to your unique situation.
If you're looking for affordable auto insurance in Edmonton tailored to you, then don't hesitate to contact Merit Insurance Services Ltd today.