Who’s Liable in an Accident When You Lend Your Vehicle?
Determining liability for any car accident can be challenging. But what happens when you lend your vehicle to someone who is later involved in an accident? Could you be liable for any injuries?
If you learned that a friend or family member caused a car accident while borrowing your car, talk to the Vancouver personal injury lawyers at Warnett Hallen LLP. We can explain how British Columbia insurance laws apply in these types of cases in a free consultation. Call or contact us now.
Insurance Follows the Driver, Not the Car
When it comes to B.C. auto insurance, the critical point to remember is that crashes are linked to the driver, not the vehicle they were driving at the time of the collision. That means if you lend your car to another driver, the accident will be reported on their driving record, not yours. This system ensures you won’t be penalized for the crash even though it occurred in your car.
Listed vs. Unlisted Drivers
The Insurance Corporation of British Columbia (ICBC) asks customers to list everyone who drives their vehicle regularly. This includes any individual who drove this vehicle for 12 or more days in the previous 12 months. All household members must also be listed regardless of the number of days they drive. This requirement ensures that the customer’s insurance premium properly reflects the combined risk of all drivers of a specific vehicle.
Anyone not included on the vehicle’s insurance policy is an unlisted driver.
What if an Unlisted Driver Causes a Car Accident?
If an unlisted driver causes an accident while driving your vehicle and they are liable for the crash, you can face a one-time penalty called the Unlisted Driver Accident Premium (UDAP). The amount of the UDAP varies and is calculated by considering what the policyholder’s premiums would have been if the at-fault driver had been listed. That difference is multiplied by 15 to arrive at the UDAP, up to $5,000 for Basic coverage or double the total of the Optional premium.
However, you can protect yourself by adding Unlisted Driver Protection to your policy. This protection is initially free. However, if an unlisted driver has an accident in your car and you want to continue with the protection, you must pay for the added coverage at your next renewal.
Connect With the Lawyers of Warnett Hallen LLP Now in a Free Consultation
The experienced car accident lawyers at Warnett Hallen LLP can answer your questions after a serious crash in the British Columbia area. Call or contact us today for a free case review.
