Lending out a car: who is liable in case of damage?
You would like to go to France by car, but your car does not have enough room for the family and their luggage. A friend offers to lend you his car. What should you bear in mind when you borrow someone else's car and who is liable in the event of damage?
Lending or borrowing a car
Every car owner in the Netherlands is required to insure their car. If you drive someone else's car, you are insured through his or her car insurance. If you are using 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 should 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 only has third-party cover, any damage you cause to another person is covered and the amount of the damage will be paid to the victim. Unfortunately, damage to your vehicle is not covered. It is therefore important to find out in advance how the car is insured, and to agree who will pay for any damage. This prevents arguments and other inconveniences.
WA + Casco cover
If the owner of the car has a WA + Casco coverage, besides damage to another person also damage to the borrowed car is covered. However, you must 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, when your car is totaled, in the most favourable case, the current value (minus the excess) of the car will be reimbursed. Often you cannot buy an equivalent car with this amount.
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. All this is also registered under your name with your insurer. Think not only of damages, but also of (fatal) accidents. This could cause a new insurer not to want to insure your car.
Lending your car
If you do want to lend your car, it is wise to draw up a contract. This way you avoid misunderstandings. For more information on car insurance, please visit our website or contact our customer service.
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