Are you considering lending your vehicle to a friend, relative, or co-worker? You should consider the potential consequences if that person causes an accident before you agree to let another person borrow your vehicle.
Do I Need to Add Someone to My Car Insurance Policy for Them to Be Covered by My Insurance?
In Canada, if you allow another person to use your vehicle with your expressed or implied consent, your insurance coverage applies if that person is involved in a car accident. Furthermore, if the person is at fault for the collision, you could potentially be held liable if you negligently allowed the person to operate your vehicle (i.e. allowed a drunk friend to drive your car) or the vehicle was being operated for your benefit.
You do not need to add a person to your insurance policy for your insurance coverage to apply. However, if you routinely allow another person to use your vehicle, you may want to consider adding that person as an occasional driver on your insurance policy. Your insurance company could argue that the driver used the vehicle on a regular basis, but you failed to report this to the company. The company may try to deny your claim based on your oversight.
Our Ontario accident lawyers suggest you discuss the matter with your insurance agent and review the fine print of your insurance policy to protect yourself when allowing others to drive your vehicle. It is prudent to review your coverage periodically with your insurance provider to ensure you have sufficient insurance coverage to protect yourself and your family in the event of an accident.
Ontario’s Compulsory Automobile Insurance
By law, you must purchase certain insurance coverage for your automobile to legally operate the vehicle in Ontario. Ontario’s requirements for a standard automobile insurance policy are:
- A minimum of $200,000 of Third-Party Liability Coverage to protect others you injure or kill in an accident that is your fault;
- Statutory Accident Benefits Coverage (no-fault insurance) that pays some of your damages regardless of who is at fault for the crash;
- Direct Compensation for Property Damage Coverage pays for the property damage to your vehicle if another driver is at fault for the collision and that driver is covered by an insurance company licensed to operate in Ontario; and,
- Uninsured Automobile Coverage to compensate you for a hit-and-run accident or an accident involving an uninsured driver.
Even though purchasing the standard automobile insurance policy protects you from breaking the law, it does not provide full coverage if you are injured in an automobile accident.
Optional Insurance Coverage
A standard insurance policy does not provide you with the protection you think you are receiving for your premium. For example, if you do not purchase additional coverage, you may only receive 70 percent of your lost income up to a maximum of $400 per week under standard insurance. If you do not have disability insurance, you could lose a substantial amount of income if you are out of work for an extended period because of a car accident.
Examples of optional coverage you may want to discuss with your insurance agent include:
- Medical, Attendant Care, and Rehabilitation Benefits
- Income Replacement Benefits
- Caregiver Benefits
- Funeral and Death Benefits
- Home Maintenance and Housekeeping Benefits
- Indexation Benefit
- Collision and Comprehensive Coverage
- All Perils Coverage
- Specific Perils Coverage
- Leased or Rented Vehicles Coverage
- Family Protection Coverage
- Transportation Replacement Coverage
Your insurance agent can provide information on each type of coverage, the amounts available, and the cost. We urge you to read the fine print of each policy and ask as many questions as you need to ask to fully understand the coverage, cost, and benefits before purchasing any insurance coverage.
Accident Lawyers in Ontario
Diamond and Diamond’s team of lawyers can help you with your insurance claim. Contact our law firm by calling 1-800-567-HURT 24/7 or visit our website to speak to someone now. We offer free consultations and case evaluations.