Aug 02, 2024 in News Legal News

Legal News: Lending Your Car in Ontario? Here’s What You Are Liable For

­­­­­­ Source: Unsplash

Yes, you are liable for loss and damage if you’ve lent your vehicle to anyone, even if it’s someone in the same household as you. Our car accident lawyers say that Ontario’s Highway Traffic is clear:

S192(2) “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”

Many people lend their vehicles to friends or family members without much thought. Sometimes, it seems absolutely necessary. However, most don’t recognize the magnitude of responsibility being taken on.

Both the car owner and the driver must be aware of the risks associated with driving someone else’s vehicle before getting behind the wheel. Find out from a car accident lawyer who can provide clarity on the legal and financial implications in the event of an accident.

Your Insurance Will Pay in the Event of an Accident

Your insurance coverage travels with your car. If someone borrows your car and gets into an accident, any damage claims from other parties will be made against your insurance policy. This incident will be recorded on your insurance history and could result in higher premiums.

There are specific /situations where your insurance company may deny a claim if you lend your vehicle to someone. These include:

             
• The borrower was driving under the influence of drugs or alcohol.
• The borrower was explicitly excluded from driving under your Ontario insurance policy.
• The borrower had a suspended driver’s licence.

If your insurance provider refuses to cover the claim because these terms were breached, you could be held responsible for the damages.

Will My Premiums Increase in a No-Fault Accident? They shouldn’t increase, but there are a few factors you need to consider [Learn More]

Check Your Friend’s or Family Member’s Licence 

Ontario’s Vehicle Impoundment Program is a compelling reason to verify your friend’s driver’s licence.

 

If the person borrowing your vehicle has a suspended licence due to certain criminal code violations, such as impaired driving or leaving the scene of an accident, your car will be impounded for a minimum of 45 days.

If their licence has been suspended for violations of the Highway Traffic Act, the impoundment period is seven days. If their licence was suspended for stunt driving or street racing, your vehicle will be impounded for 14 days.

To retrieve your vehicle after the impound period, you will need to pay the towing and storage fees.

When Lending Your Car to Someone in the Same Household

You must inform the insurance company about anyone in your household who might drive the insured vehicle (even if infrequently), as their driving records can influence your policy premiums.

  Even someone not part of your household, but driving the car routinely, will need to be declared as a secondary driver.

Failure to provide this information can result in the insurer refusing to pay a claim, leaving you responsible for any damages.

Are You Liable for Speeding Tickets?

Unsplash

Typically, if someone gets a speeding ticket while driving your car, it's their responsibility.

The ticket will affect their insurance, and they will be liable for any fines or charges.

 

However, if they are caught speeding 40 km/h over the limit, your car may be impounded. It will be your responsibility to follow up and ensure its return.

What About Parking Tickets and Toll Fees?

Parking tickets and toll fees incurred by someone driving your car generally fall on you, the car owner. You will be responsible for paying any parking fines or toll charges that occur.

 

Remember, you will not be able to renew your licence plate if you have outstanding tickets, fees or fines.

It's essential to discuss these potential costs with the borrower ahead of time to prevent any misunderstandings and ensure they are aware of their responsibilities.

Here’s How You Can Protect Yourself, Explain Our Personal Injury Lawyers in Toronto

Make sure your vehicle is properly insured and provide the borrower with proof of insurance, including the effective dates. 

It is far better to give your insurance company a call and check if the person driving will be covered by them. Not only will it give you peace of mind, it will give you a firm footing in case there’s an accident and the insurer attempts to disclaim coverage.

Beware that the person driving your vehicle should be only an occasional driver. If they routinely use the car, such as a parent using the car for grocery runs every few days, they need to be added as a secondary driver.

If the person borrowing has signed an excluded driver endorsement on the auto insurance (basically saying they will not be covered), you should not lend them the car. They would be categorically excluded from insurance and it would be unlawful for them to drive the vehicle on public roads.

Finally, if you’re thinking of lending or sharing a rental car, you should explicitly check with the rental company. Most rental companies do not allow the vehicle to be driven by anyone other than the primary and named drivers in the rental contract. On some occasions, common-law partners and spouses may be covered, but that’s the exception rather than the norm.

What to Do if You’ve Lent Your Car and It’s Involved in an Accident?

Contact experienced personal injury lawyers in Toronto immediately. Unless you were present at the scene of the accident, you will have little knowledge of the events leading up to it. It’s vital that the accident is investigated and your rights defended by seasoned car accident lawyers.

There is a good chance the insurance company will try to deny coverage, entice you with a quick low-ball offer, or coerce you into accepting blame. Lawyers for personal injury cases can level the playing field and ensure you don’t get bullied.

If your vehicle has been involved in an accident, speak to our personal injury lawyers immediately.