Am I Liable If Someone Has an Accident While Borrowing My Car?

There can be major legal and financial consequences if someone borrows your car and gets in an accident. The general rule is that you as a vehicle owner are responsible for damage and injuries caused by the negligence of a person who borrows your vehicle. In today’s article, our team of Oshawa, Lindsay, and Whitby car accident lawyers will discuss the risks of letting someone borrow your car.

Ontario Auto Insurance Follows the Vehicle

In Ontario, auto insurance coverage generally follows the vehicle’s owner, not the vehicle’s driver. Section 192(2) of Ontario’s Highway Traffic Act establishes owner liability for loss or damage: 

The owner of a motor vehicle or street car is liable for loss or damage sustained by any person by reason of negligence in the operation of the motor vehicle or street car on a highway, unless the motor vehicle or street car was without the owner’s consent in the possession of some person other than the owner or the owner’s chauffeur. 

That means you are responsible for the negligence of a person who borrows your car, provided they borrowed it with your consent. Ontario courts have interpreted section 192(2) of the Highway Traffic Act to mean that a vehicle owner is presumed to have given consent to the borrower, unless the vehicle owner can rebut the presumption. 

Consent can be express or implied, which makes the presumption difficult to rebut in some cases. For example, if you consented to your teenager borrowing your vehicle, and then your teenager let one of their friends drive it, you may still be liable if an accident occurs.

Insurance Coverage in the Event of an Accident

In most situations, your auto insurance policy will cover losses and damages caused by a driver who borrowed your vehicle. That typically includes property damage and personal injury caused by their negligence, but the extent of coverage will depend on your policy limits. Accident claims are processed through your insurance, which can lead to an increase in your insurance premiums. The accident will go on your driving record.  

You may have noticed that the paragraph above starts with the words “in most situations.” Let’s talk about some of the important exceptions to the general rule. Your auto insurer may deny coverage for any claims if you lend your vehicle to someone and they cause a crash while:

• they were under the influence of drugs and/or alcohol; 

• they don’t have a valid driver’s licence;

• their licence was suspended; 

• they are explicitly excluded from driving your vehicle by the terms of your auto insurance policy;

• they routinely drive your vehicle but weren’t added as a secondary driver on your policy; and/or

• they were using your vehicle for deliveries or ridesharing, but you don’t have proper commercial insurance coverage in place.
  

When insurance claims are denied for those reasons or any other, you as the vehicle owner may be personally responsible for any loss or damage. In other words, you may have to pay out of pocket for vehicle damage and personal injury claims. Your personal assets could be at stake. It can lead to financial ruin if the accident causes severe injuries. 

Trusted Advice from a Whitby Car Accident Lawyer

Whitby, Lindsay, Oshawa, Kawartha Lakes, Durham Region, GTA and surrounding area residents are encouraged to contact Kelly Greenway Bruce with personal injury and auto insurance claim questions. We strongly recommend that you reach out as soon as possible after the accident, as proper accident investigation and strong advocacy may be needed to defend your rights and ensure insurance claims aren’t unfairly denied. 

If you or a loved one was hurt in the crash, our accident claims lawyers can help you evaluate your legal options and explain your rights to compensation. We’ll guide you through the entire claims process, from securing evidence and preparing a strong case to negotiating with the insurers. We have the skills and experience to get the support you need and maximize your financial compensation.

Kelly Greenway Bruce is a full-service law firm with extensive experience in personal injury matters with offices in Oshawa, Lindsay, Kawartha Lakes, Durham Region, GTA and surrounding areas. Contact us today for a free case evaluation from an experienced car accident lawyer.