Before you hand over the keys, it is a good idea to know how your auto insurance works if someone else drives your vehicle. Whether it’s a friend whose vehicle is in the shop, a family member running an errand or a visitor taking a turn behind the wheel on a long drive, coverage can depend on a few important details, including permission, status of licence, your policy conditions and how often they use the vehicle.
In many cases, yes, a friend or family member can drive your vehicle if they have your permission, a valid driver’s licence and your policy allows it. But if something goes wrong, your insurance may be involved. That is why it is worth knowing the rules before you lend your vehicle.
Does auto insurance follow the vehicle or the driver?
A common misconception is that insurance always follows the driver. In many cases, it is the vehicle owner’s policy that provides the primary coverage1 when someone has permission to drive and gets in an accident.
For example, if a friend borrows your vehicle to run an errand and causes a collision, the claim may go through your auto insurance policy. Depending on what happened, it could also affect your insurance history and future premiums.
This is why it is important to be confident about who is driving your vehicle and how often they use it.
Can someone not listed on your policy drive your vehicle?
In some situations, yes. If a friend borrows your vehicle occasionally, they may not need to be listed on your policy. But if someone drives your vehicle regularly, they may need to be added as an occasional driver.2
This is especially important if the driver lives in your household or has regular access to the vehicle. If a regular driver is not listed on your policy when they should be, it could create complications if you need to make a claim.
Make sure to check your provincial regulations to confirm the risks before letting someone drive your car. If there is any uncertainty, contact a broker before lending your vehicle.
Common myths about lending your vehicle:
Myth: Anyone with a driver’s licence can drive my vehicle
These rules can be easily misunderstood. Some assume permission is always enough, while others think the driver’s insurance will automatically apply. The driver needs your permission, a valid driver’s licence, and must follow the conditions of your policy.
Myth: Only the driver’s insurance is affected if they cause an accident
Not always. Because your vehicle and your policy may be involved, a claim could affect your insurance history as well.
Myth: A friend who drives my vehicle regularly does not need to be reported to my insurer
If someone regularly uses your vehicle, your insurer may require them to be listed on your policy.
What happens if a friend gets into an accident?
If a friend gets into an accident while driving your vehicle, safety comes first. Once everyone is out of immediate danger, start gathering the details your broker or insurer may need to review the claim.
Follow these steps:
- Make sure everyone is safe and call emergency services if needed.
- Exchange contact, licence, and insurance information with the other driver.
- Take photos of the vehicles, damage, and road conditions.
- Report the collision if required in your province.
- Contact your broker or insurer as soon as possible.
If the driver had your permission and followed the conditions of your policy, your insurer may handle the claim under your coverage. However, every situation is different, and coverage depends on the details of the loss, your policy, and provincial regulations.
Before you hand over the keys
Before you lend your vehicle, run through this quick checklist:
- Does the driver have a valid driver’s licence?
- Do they have your permission to use the vehicle?
- Are they using the vehicle for personal use?
- Will they be driving the vehicle occasionally or regularly?
- Are they excluded from your policy?
- Do they know where the insurance slip and registration are located?
If you are unsure about any of these questions, confirm your coverage before they drive. A quick check can help you avoid surprises later.
The bottom line
So, can someone else drive your vehicle? In many cases, yes. If they have your permission, a valid driver’s licence, and your policy allows it, they may be covered while driving your vehicle.
However, occasional use and regular use are not always treated the same way. If someone frequently drives your vehicle or has ongoing access to it, speak with your insurer to ensure your coverage accurately reflects how the vehicle is being used.
Not sure who is covered to drive your vehicle? Contact a broker for personalized guidance. They can review your policy and help confirm whether your coverage reflects how your vehicle is being used.