What To Do When You Lend Your Car And It Becomes Involved In A Motor Vehicle Collision

While handing over the keys to your vehicle may not seem like a big deal at the time, it can potentially result in an entire heap of problems. Specifically, legal problems. Should the person you lend your car to become involved in a collision, it is not just their problem, but also yours. Because of this, you should make yourself aware of the consequences that could stem from such a small act of kindness.

Your Vehicle Is Insured Under Your Name

In the event of a motor vehicle collision, the party files a claim against the other party’s insurance policy, which in this case, would be your policy. Not the policy of the person who was driving at the time. As a result, the accident will be added to your record which may leave you to pay higher premiums than before through no fault of your own.

However, there are also situation in which your insurer has grounds to refuse payment for a claim that resulted from such an accident. Specifically, if the person you lend your car to was driving while intoxicated, was explicitly excluded from operating it under your policy, or was driving despite their license being suspended.Should any of these violations of your policy terms be applicable to the accident, then it is you who will be held responsible for the damages resulting from the accident.

Person You Lend Your Car To Needs A Valid License

The province of Ontario has introduced the Vehicle Impoundment Program in an effort to clear Ontario streets of drivers operating under suspended licenses. The quickest way to check the validity of someone’s license is to make use of an online service provided by the Ontario Ministry of Transportation.

Should your borrowed car be caught as it is operated by a driver with a suspended license, then the Vehicle Impoundment Program could lead to it, being held for a total of forty-five days. This impoundment will be brought on if the license of the operator is found to have been suspended for either one of these violations of the Criminal Code:

• Impaired driving
• Leaving the scene following their involvement a motor vehicle collision
• Disqualified driving

The suspension of a license based on a Highway Traffic Act violation will lead to the impoundment of your vehicle for one week. The recovery of your vehicle afterward will require coverage of storage and towing fees. It always helps to have an Injury Lawyer in Georgetown represent your rights in or out of court. They will ensure that you get justice for the injuries sustained in an accident.

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