Short-term loan, loan or car rental: are you covered?

 Short-term loan, loan or car rental: are you covered?
Desjardins Insurance demystifies complex auto insurance situations for you.

Heading to California roads and renting a convertible car? Are you moving and want to borrow your friend's vehicle? Do you do your godson a favor and lend him your car for the weekend? No matter the situation, we'll help you find out if you're covered.


Borrow a car
Say you borrow your friend's car to go to the grocery store. Unfortunately, backing up from your parking space, you didn't see the other car coming in and bang! You get away with it unscathed, but your door is smashed and the paint is scratched.
If your friend is not protected from collisions, what will happen? Will you have to pay out of pocket for necessary repairs? Does your auto insurance policy cover you against damage to a vehicle that is not yours?
Your auto insurance could protect you ...
If you own a car and therefore have an auto insurance policy, you can purchase short-term rental or borrowed car coverage. This protection is called "Civil liability for damage caused to vehicles of which the named insured does not own" or Endorsement 27 for insiders. It will cover you if you are responsible for damage caused to a vehicle that does not belong to you, in Canada and the United States.
So, if your friend claims the amount of the damage to their car, the protection of Endorsement 27 will prevent you from having to pay for the repairs yourself. This will help you avoid unforeseen expenses and keep your good relationship with your friend.
Lend your car
To your child
Your eldest has just passed his driver's license and will drive your car? Here are two good reasons to report it to your insurer:
So that it is covered by your car insurance
Notifying your insurer when you want to add a driver is very important, because it will assess the level of risk associated with this change. Failure to add it to your insurance policy could therefore cost you dearly in the event of damage. Indeed, if your elder is involved in an accident, you may only be partially compensated for the damage to your vehicle.
So that he can gain experience and save more!
If you register him as a driver, he can gain experience behind the wheel which could be beneficial when it comes time to shop for his own auto insurance policy.
To a friend who doesn't own a car
You spend a pleasant evening at the restaurant with friends. You make the wise decision to hand your keys over to your group's designated driver to drive you home. As this is an exceptional situation here, your designated driver (who must have a driver's license, of course!) Will be covered by your car insurance, as if you were behind the wheel yourself.
To a friend who owns a car
Your best friend is moving on July 1st. In a burst of generosity, you lend him your car, which is more spacious than his. What will happen in the event of a responsible collision? Your auto insurance policy will cover you for any damage you suffer. However, if your friend's insurance policy includes Endorsement 27 mentioned above, their insurer may be compensating them for the damage suffered. In short, it's really about figuring out together what your respective protections are, in order to make a decision that both of you are comfortable with.
In case of damage, will it leave a trace in your file?
In the event of an incident or accident, the data of the people involved are kept in the central automobile claims file. Thus, even if only one of the parties involved in the accident declares the claim, the information is entered for both parties. What will be the impact on your insurance premium? It will all depend on the circumstances surrounding the event and your level of involvement (responsible or non-responsible).
Rent a car for the short term
I don't have auto insurance
If you are renting a car for the short term to travel in Quebec, you will need protection for any damage that may be caused to the rented vehicle. This protection will be provided to you by the car rental company.
I already have car insurance
If you want to rent a car in Canada or the United States and want to make sure you're well protected, again, the best protection is Rider 27. This protection is available for just a few dollars. Any damage that may occur to the car will be covered by your insurance policy (depending on the amount of insurance granted