Mythbuster: Does lending my car mean lending my insurance?

I can lend my car to a friend as long as he has his own insurance. If he gets into an accident, his insurance company will pay for any claims.

When you lend your car, you’re also lending your insurance, so carefully choose who gets to drive your car! You can lend any vehicle you own to anyone with a valid driver’s licence, but if your car is in an accident while that person is driving, the claim goes through your insurance as you’re the owner of the vehicle.

Your insurance company will be responsible for settling the claim and it’s your rates and deductible that will be affected by the accident. In some cases, like if your friend drives your vehicle while impaired, you could also be legally responsible.