The important points
- Car insurance follows the car, not the person, and a non-owner can usually drive an insured car with the owner’s permission.
- If someone is borrowing a car more than occasionally, the insurer may require that they be added to the policy.
- If someone is responsible for an accident while driving a borrowed car, both their own and the car owner’s insurance premiums may be impacted.
Who can drive under my car insurance?
In Ontario, Alberta, Quebec, and most other provinces, someone else can usually drive your car if they meet the following criteria:
- They have your permission (verbal permission is enough)
- They have a valid driver’s licence
- They are not listed as an excluded driver on the policy
- They will be operating the vehicle legally
One major exception is in BC. Drivers in BC need to have Unlisted Driver Protection in order to lend their vehicle to someone who isn’t listed on the policy. Individual insurers in other provinces may have their own rules, too — so be aware of your own policy’s conditions.
One thing to note is that car insurance policies typically don’t follow you from car to car — they’re attached to individual vehicles. There are some special exceptions, like when you’re driving a rental while your regular car undergoes repairs. So, if you let someone else drive your car, you need to make sure that the insurance policy for that vehicle permits others to drive it.
In each province, there is a limit to how often someone can drive your vehicle before they need to be named on your insurance policy. As a rule of thumb, if someone is driving your car more than a handful of times in a year, they may need to be listed as an occasional driver.
An occasional driver is someone listed on a car insurance policy but who is not the vehicle’s primary driver. Many insurers restrict occasional drivers to people residing in the same household as the primary driver. If you regularly lend your vehicle to someone outside your household, make sure your insurer is aware of the arrangement.
Remember, car insurance works differently in each Canadian province. Even though the rules for letting someone else drive your car don’t differ too much, provinces may have their own nuances — it’s worth doing a little extra research.
What happens if someone gets into an accident with my car?
If you lend your vehicle to someone, your car insurance policy will cover them and your car just as it would if you were driving. That is, of course, assuming that they’re permitted to drive under the policy.
So, they’d have third-party liability coverage if they were found liable for damage or injury while driving your car. They’d be able to access accident benefits as well, if they were injured in the crash.
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If someone else gets into an accident while driving your car, you can start a claim with your insurance provider. If they were at fault for the accident, your insurance premiums would likely increase at your next annual renewal. That’s exactly how it would happen if you were driving.
However, their insurance premiums could increase, too. Since they were driving, the accident would go onto their driver’s licence record. So, if they have their own vehicle and car insurance, their provider would note any new at-fault accidents upon their annual renewal, and probably raise their rates accordingly.
What if I’m in an accident with someone else’s car?
If you borrow someone’s car (with their permission) and get into an accident, their insurance will usually cover you, even if you’re not listed on their policy. However, since you were driving, the accident would go on your driving record, which can raise your own premium at renewal. The car owner may also see their premium rise if they have to make a claim to repair the damage.
Commonly asked questions
Who can drive under my car insurance in Ontario?
In Ontario, anyone with a valid driver’s licence can drive your car under your insurance policy, as long as they aren’t listed as an excluded driver. This only applies to one-time lending; someone who regularly drives your car (even once per month or so) needs to be listed on the policy.
You can also drive someone else’s car in Ontario, under the same rules applying: as long as you have the owner’s permission, their policy will cover you.
Do I have to add my family members to my car insurance?
Yes, you’ll generally have to list every licensed driver in your household on your car insurance policy, whether a spouse, child, or roommate. Even if your child only has a learner’s license (like a G1 or G2 in Ontario), they will need to be listed on your car insurance policy. This is so the insurance provider can properly calculate a price based on who will or may drive the car.
What is an occasional driver?
An occasional driver is anyone listed on a car insurance policy who drives the vehicle less frequently than the primary (or principal) driver. While the primary driver is the person who operates the vehicle most of the time, an occasional driver would be anyone else who may drive the vehicle sometimes (even very seldomly).
Does car insurance follow the car or the driver?
Car insurance follows the car, not the driver. So, even if you have car insurance for your own vehicle, you can’t hop into a different uninsured car and drive it around.
Who’s liable for an accident in a borrowed car?
If someone is driving a borrowed car and is at fault for an accident, they’ll be liable. However, the borrowed car’s insurance would cover them, assuming the appropriate coverages were in place. Both the borrower and the owner could see their insurance premiums increase after an at-fault claim as well.
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About the expert: Daniel Mirkovic
A co-founder of Square One with 25 years of experience in the insurance industry, Daniel was previously vice president of the insurance and travel divisions at the British Columbia Automobile Association. Daniel has a bachelor of commerce and a Master of Business Administration (MBA) from the Sauder School of Business at the University of British Columbia. He holds a Canadian Accredited Insurance Broker (CAIB) designation and a general insurance license level 3 in BC, Alberta, Saskatchewan, Manitoba and Ontario.
