Cover
Car lending: are accidents insured by third party drivers?
Lending your car is a matter of trust. Unfortunately, accidents can happen quickly. What do you need to consider when lending your car? Who pays for the damage in an accident? Comparis has the answers you need.
11.10.2022
iStock/DragonImages
1. Lending your own car: what should I be careful of?
With liability insurance and casco insurance, your car is safely insured. However, special rules apply to third-party drivers. Therefore, make sure that the driver’s personal liability insurance covers third-party drivers.
This supplemental insurance covers repair costs for your car if it isn’t covered by full casco. In addition, any no-claims bonuses on your car insurance are protected. However, it only applies if you lend the vehicle occasionally.
Some insurance companies interpret this rule very restrictively. Occasional driving could be, for example, once a year for no longer than 14 consecutive days. Often, it’s limited to a certain number of days per calendar year (e.g. 24).
You should also check the maximum sum insured under third party driving insurance. There can be big differences here, too. In addition, the driver may not live in the same household as you.
2. Which drivers do I need to register with my insurance company?
Registration with the insurance company depends on the frequency of third-party use:
If other drivers (e.g. family members or your partner) regularly use the vehicle, you must report this to the insurance company. They will register the most frequent driver as well as any additional drivers of the vehicle.
If, on the other hand, you only occasionally lend the car to other people, you don’t have to report this.
3. Accident caused by a third-party driver: will my full casco pay out?
With full casco coverage, damage to your car is covered if you’ve loaned it to a third party. The deductible and any losses in premiums remain with you, however. You can claim these from the driver. They can, in turn, pass them on to the third-party driver’s insurance company.
4. What about my deductible and losses in premiums?
An accident caused by a regular driver that has been reported to the insurance company is subject to the same cover as the driver. This includes any bonuses and deductibles.
However, does the person who caused the accident only use the vehicle occasionally? If so, the deductible is only covered if the driver has taken out third-party insurance. Otherwise, you must agree on these costs with the person responsible for the accident.
In the event of liability damage, your premiums won’t increase because you weren’t driving the vehicle. However, in the event of collision damage, you will lose your no-claims bonus. You can also claim this back from the driver.
Calculate car insurance premiums
Depending on the insurance company, there are large differences in premiums. That’s why it’s worth taking a closer look: with Comparis, you can compare the latest car insurance premiums and calculate your savings potential.
This article was first published on 11.10.2022
