Have you ever been in a position where someone wants to borrow your car? Perhaps it is a friend who needs it for a camping trip or someone who wants to borrow it to go to an urgent appointment. It can be difficult to refuse, but you should consider a few factors before saying yes.

“When you lend your car to someone else, you’re also lending them the insurance that goes with it. That’s why it’s important to be aware of the implications” says Peter Olyott, CEO of Indwe Risk Services. “Many people give their cars to their teenage children as they learn to drive without understanding what the implications would be if they were involved in an accident.”

It is essential to ensure that the person driving your car is legally allowed to drive. “If they don’t have a valid driver’s license, the insurance policy attached to the vehicle won’t pay out a claim, and you will be liable for damages and injuries sustained in that accident,” says Olyott. “The risk is huge, not to mention that it will also effect your insurance premium.”

When lending your vehicle to others it’s important to do your due diligence and these important questions:
• Who will be driving the vehicle?
• Do they have a have a valid driver’s license for the type of vehicle that is being used?
• What is the vehicle going to be used for?
• For how long will they need the vehicle?
• What if the driver does something that violates your insurance coverage?
• Your insurance could be voided in certain situations and then you may be personally responsible for damages – can you afford that?

If someone, like your teenage child, uses your car on a regular basis, you should inform your insurance company so that they can establish if you need to pay an additional premium. Olyott adds “This is known as disclosure, an important rule in the Insurance industry. If you withhold information like this, it could invalidate your coverage.”

When another driver is using your vehicle, you are putting your insurance and your good driving record at risk. You are taking responsibility for whatever happens. By asking questions, you can consider the consequences and make an informed decision.

“At Indwe Risk Services we believe in a personal touch. Speak open and honestly to our advisors. They can assist you in reviewing your specific insurance needs and provide recommendations to ensure you are not caught off guard when you can least afford it,” Olyott concludes.