If you decide to allow someone else to use your car, you are also lending that person your insurance. In a case where an accident occurs, the insurance company doesn’t let you off the hook because someone else was behind the wheel. Even though Ontario has adopted a no-fault car insurance system for insurance purposes, an investigation will be conducted after the incident to determine which driver was at fault.
The insurance follows the car, so the owner of the vehicle responsible for the accident will also be responsible for the consequences. He or she will likely be looking at higher premium rates for a number of years after the incident, especially if the owner has already got an at-fault accident on his or her record.
Before you decide whether to say “yes,” consider whether the person making the request is a good driver. If you know or suspect that he or she will drive recklessly, the better decision is to either refuse or do the driving yourself. At least you will remain in control of the situation if you make that choice.
An accident can happen to anyone, no matter how long they have been licensed, and if you choose to lend your car to someone else, you are effectively putting your car insurance rates for the next several years in their hands.