Lending out a car: who is liable in case of damage?
You would like to go to France by car, but you don't have enough room in your car for the family AND luggage. A friend offers to lend you his car. What should you keep in mind when you borrow someone else's car and who is liable in case of damage?
Lending or borrowing a car
Every car owner in the Netherlands is required to insure his or her car. If you drive someone else's car, you are insured through his or her car insurance. If you use a borrowed car for a longer period of time, you must report this to your insurer. The insurer will then determine whether the risk and thus the premium remains the same, or whether the driver is more at risk and the premium must go up. If the person borrowing the car is a novice driver, chances are that the premium will go up.
Third-party cover
It is important to make proper arrangements when lending or borrowing a car. If the car has only third-party coverage, damage you cause to another person is covered and the amount of damages will be paid to the victim. Unfortunately, damage to your vehicle is not covered. So it is important to find out in advance how the car is insured, and agree on who will pay for any damages. This will prevent arguments and other inconveniences.
WA + Casco cover
If the owner of the car has WA + Casco coverage, not only is damage to another person covered, but also damage to the borrowed car. However, you have to take into account that when claiming the damage, the number of claim-free years of the owner goes down and he or she has to pay more premium. In addition, if your car is totaled, in the most favorable case you will be reimbursed the current market value (minus the deductible) of the car. This is often not enough to buy an equivalent car.
In some cases, a WA + Casco insurance has a clause. This can mean that only damage to the car caused by the owner or his/her partner is covered. Another clause is that only damage caused by persons older than the youngest named driver is covered.
To lend or not to lend a car?
Besides the cost, there are other disadvantages to lending your car. As the owner of the car, you are liable for all damages and most fines caused by the driver of the car. Also, all of this is registered under your name with your insurance company. Consider not only damages, but also accidents (fatal or otherwise). This could cause a new insurer not to want to insure your car.
Lending your car anyway
If you do want to lend your car, it is wise to draw up a contract. That way you avoid misunderstandings. For more information about car insurance, please visit our website, or contact our customer service team.
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