You have the right to lend your car to one of your loved ones… but under certain conditions! In most cases, insurance contracts include a “steering wheel loan” clause.
An assignment authorizing the insured to lend his car to a child, relative, etc. It is important, however, to consult your insurance contract to find out who can drive your car as there may be restrictions.
The first of these is that the person receiving the loan has a driving license.
Lending Frequency: An Essential Criterion
Your contract will include the frequency of borrowing. The insurance conditions will not be the same if the borrower uses your vehicle occasionally or regularly.
In order for the driver to be covered at no additional cost by your insurance contract, the steering wheel loan must be short and specific.
In the case of a more regular or longer loan, the borrower is not considered a separate driver. Therefore it is the duty of the insured to inform his insured as a primary driver, secondary or occasional driver.
Your insurance company will adjust the contract according to your declarations, and your insurance premium may be increased if the risk of being insured is greater.
Loan matters
Multiple instances of ready to drive they are possible according to insurance company contracts:
– unlimited: you can lend your vehicle to any driver who has a driving license, without overcharging you in the event of a responsible accident.
– a loan with an excess license increase: you can also lend your vehicle to the person you love. On the other hand, you will be charged a higher excess in the event of an on-site accident.
– loan not including new drivers: only new drivers are allowed to borrow your vehicle.
– a loan restricted to the family: the loan is prohibited to a third party, except usually your descendants (parents, grandparents, etc.), your descendants (son, daughter, etc.) and your spouse.
– loan ban: in this situation, your contract simply prohibits you from lending your vehicle. This is usually referred to as a special conduct clause.
Contact the insurer
As a precaution, do not hesitate to contact your company, your broker or your agent to warn about a loan and possibly change your coverage before you hand over your car keys to a relative, friend or neighbor.
In fact, to set their price conditions, insurers take into account the profile of drivers authorized to take the wheel to assess the risk. Note that some insurers make a distinction between the concepts of a vehicle loan and a steering wheel loan.
Permission to lend the steering wheel is then considered as an opportunity for the insured, while he is present in the car, to drive it to a third party who is not named in the contract.
In the event of an accident…
If a driver occasionally causes an accident for which he is responsible, the insurer has the right to limit the guarantees and increase the excess on your contract.
Lending your vehicle to a third party will be your responsibility. The insurer may also decide to void your warranty and deny coverage for substantial damage to your vehicle (if you have comprehensive coverage), or even bodily injury suffered by the driver at fault.
If you have third party insurance, you are not entitled to compensation for damage to your vehicle. Finally, the accident will then penalize your contract as the contract is linked to the vehicle and not the driver.
2024-11-13 07:27:00
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