The Consequences of Lending Your Car

If you allow a friend or family member to drive your car, you're putting them in a position of trust. If they treat your car in the wrong way, then it might come back in poor condition. Sometimes, the damage is subtle; sometimes, it's obvious!

Let's take a look at some of the consequences of lending your car to someone. That way, you'll be able to make a decision in full sight of the potential ramifications.

Insurance implications

Your first question might involve insurance. Who's covered if something goes wrong? In general, car insurance follows the vehicle rather than a driver. A such, if the car is involved in a collision, and a claim has to be made, it'll be your insurance that's affected. This might mean your no-claims bonus being compromised, or your premiums in general going up the following year.

Car insurance is a legal requirement for driving on UK roads. As such, you'll want to be sure that the person driving your car is insured. If they aren't, then you could be in legal trouble, too.

Liability and financial risk

The legal and financial risk may be considerable. If you're lending a car to a friend, you might find yourself liable for damages that result from their actions. If they drive into someone else's property, then it might be you who ends up paying. This risk is particularly strong if you know that there's a reasonable chance they might drive the car irresponsibly. In certain cases, where the car is involved in an accident that causes significant injury or death, the legal risks might be considerable.

Frequency of borrowing

If a particular person is regularly borrowing your car, then you might be able to limit the risk by adding them as a named driver on your insurance policy. This might mean higher insurance premiums, but it will ensure that you're covered in the event of an accident. In some cases, it could be cheaper than pursuing separate policies.

What should I check before lending my car to a friend?

There are a number of checks you might perform before lending the vehicle. To begin with, you'll need to be sure they are qualified to drive. This means a license that's appropriately clean, and the insurance coverage we've always mentioned. It also means that they aren't drunk or otherwise intoxicated. If you knowingly allow a drunk person to drive your car, then you will rightly be held accountable for the consequences.

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