Driving someone else’s car: who pays in case of an accident?

Driving a car occasionally: Which insurance applies?

If you drive a car you don’t own, the owner’s auto insurance applies. For the insurer, “occasionally” means regular but infrequent use, such as a few trips a week. If that’s your case, you should be listed on the car owner’s insurance contract.

Note: if you aren’t declared, compensation may be reduced or even refused. The accident will be recorded in the Central Auto Claims File on the driver’s record for six years.

Real-life example
You’re 17 and regularly drive the family vehicle. You cause an accident with property damage. For the owner’s insurance to cover cost of the damage, you must be declared as an occasional driver of the vehicle. Otherwise, the insurer could limit or refuse compensation.

Exceptional driving: What happens in case of an accident?

When you drive exceptionally, the owner’s insurance may apply in case of an accident, depending on the coverages in the contract. A truly one-off loan, once in a while, is considered exceptional use.

The accident will be recorded on the driver’s record. If you’re the at-fault driver, the damage to the vehicle could be paid:

• By the owner’s insurer, if they have the optional Collision or Upset or All Perils coverage (Section B of the contract).
• By your insurer, if you own a vehicle and your auto insurance includes the Q.E.F. 27 endorsement – Damage to vehicles not owned by the insured.

Real-life example
You borrow a friend’s car to go to the grocery store and cause an at-fault accident. The owner’s insurance covers the damage. If it doesn’t, your own Q.E.F. 27 endorsement may step in.

Driving an uninsured vehicle: Risks and consequences in case of an accident

In Quebec, driving a car without insurance is illegal. The mandatory minimum coverage (third-party liability) covers property damage or bodily injury caused to another person in an accident for which you’re responsible. Driving a vehicle without insurance leads to penalties such as:

• A fine of up to $2800
• Immediate suspension of your driver’s licence
• The obligation to pay for the damage you caused yourself

Real-life example
You’re driving the family car or a friend’s vehicle whose insurance has expired and cause an accident. You’ll pay for the repairs out of pocket and risk a fine as well as the suspension of your driver’s licence.

What checks should you make before driving a friend’s car?

Before getting behind the wheel of a borrowed car:

• Check that the vehicle is insured and have the proof of insurance on hand.
• Make sure you have a valid driver’s licence.

What are the consequences for the car owner in case of an accident?

In case of an accident, the insurance premium of the owner who agreed to lend you their car may go up, even if they weren’t the one driving. When you borrow someone’s car, be aware that your actions behind the wheel can have a direct impact on their insurance:

• An accident can raise their car insurance premium at the next renewal.
• The vehicle owner could have to pay part or all of the damage to their vehicle if the insurer limits or refuses compensation.

Are you a young occasional driver? Make sure your name is declared to the vehicle’s insurer before getting behind the wheel.

FAQ – Driving a friend’s car and insurance

Does the owner’s insurance cover the damage if I’m at fault?
Yes, generally, depending on the coverages in the contract. If you drive the vehicle regularly, you must be declared as an occasional driver.

Is there a difference between an at-fault and a not-at-fault accident?
Yes. In Quebec, each insurer compensates its own insured. The Direct Compensation Agreement (DCA) is used to determine each party’s responsibility.

• At-fault accident: Damage to the vehicle is generally covered by the owner’s insurance, or by the driver’s insurance when it applies.
• Not-at-fault accident: Damage to the vehicle is covered by the owner’s auto insurance coverage.

Can I drive a friend’s car if I don’t have personal insurance?
Yes. You must hold a valid driver’s licence and have the owner’s permission. In case of an accident, the owner’s car insurance coverage applies.