Lending your car and your insurance
Do you lend your car to a family member or friend? Then he or she is also insured through your car insurance. However, they must have permission to use the car and a valid driver's license. Does someone damage your car? Then the damage is not always compensated by the insurer. This depends on the coverage of your car insurance. Keep this in mind when you lend your car.
Your car is insured by license plate while on loan
This is because car insurance is linked to the license plate of a car, not to a person. Others are therefore insured if they drive your car.
When insuring a car, you also specify who the regular driver is. This is the person who uses the car the most and is listed on the insurance policy. This is usually yourself. An irregular driver is someone who drives only occasionally with your permission. That person is also insured.
Does someone else use your car regularly? Then you should report this to your insurer to avoid problems with the insurance. Check the policy conditions to see if this applies to your insurance.
The risks of lending your car: damages and fines
Your car is insured when you lend it. However, as the owner of the car, you remain liable for all damages and fines that someone else causes with your car. Fines, damages and accidents are registered under your name with your insurer.
This may mean that a new insurer may not want to insure your car if you buy a new car in the future. Be aware that someone who borrows your car may not know the car well, so there is a greater chance of damage.
Tip: make good arrangements
Still lending your car? Make proper arrangements about who is liable. For example, draw up a contract with the borrower in advance. Lay down who is responsible for what. This will prevent annoying misunderstandings afterwards. Especially if you lend your car for a longer period of time or if the borrower takes your car abroad, this is a wise idea.
Check your car insurance in advance
Special insurance to lend your car is often not necessary. Always check the policy conditions to see exactly how you are insured. You run the greatest risks if your car is only insured under third-party or limited liability insurance. If the lender causes a collision, you will not be paid for your own damage. You or the person borrowing the car must pay for this yourself.
WA+Casco (All-risk) coverage with a loaner car
If you as the owner have WA+Casco insurance, both third-party damage and damage to the borrowed car are covered. But if your car is totaled, you are usually reimbursed the current market value of the car, minus the deductible. With that, you often can't buy a comparable car back.
Additional clause
WA+Casco insurance sometimes includes an additional clause about damage caused by someone else. This means, for example, that only damage to the car caused by the owner or his/her partner is covered. Damage caused by a friend or other family member is not covered.
You can lose claim-free years by lending your car
Does someone damage your car? All the claim-free years you have accumulated are linked to the insured car. If you then make a claim, you take a step back on the bonus-malus ladder which means you pay more premium. Even if someone else was driving the car during the accident.
Damage abroad
Are you giving your car to someone to go on vacation abroad? Some insurance policies have restrictions or require additional coverage for use outside the Netherlands. Ask your insurer about any additional requirements or documents you may need. Consider a green card, which is required in many European countries.
The borrower may also need an authorization. This authorization states that you as the owner give permission for the borrower to take your car abroad.
Lending your car for a longer period of time
If you lend your car for a long time, you must report this to your insurance company. The insurer will then determine whether the risk and therefore 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 your insurance will be more expensive.
Lending your car through a sharing platform
If you share your car through a lending platform, standard car insurance is often not enough. Many platforms offer additional share car insurance that provides coverage during rental periods. This insurance temporarily replaces your own policy and protects against damage, theft and liability.
Some platforms arrange this automatically, but others require you to purchase your own insurance. Check your policy terms and see if damage during rental affects your claim-free years. Without proper coverage, you will have to pay for damages yourself. Make sure you are properly insured before you rent out your car.
Frequently asked questions about lending your car
Can I lend my car to someone else?
Yes, you may lend your uto to someone else, such as a friend or family member. The condition is that the person has a valid driver's license and uses the car in a normal way. Please note that different rules apply for commercial use or rental.
Am I insured if I loan my car?
Yes, usually your car insurance remains valid if you lend your car, but coverage depends on your policy terms. With many insurers, damage caused by another driver is simply co-insured, as long as they had permission to drive. Always check your policy to avoid surprises.
What happens if the borrower causes an accident?
If the borrower causes an accident, the damage is covered by your auto insurance. This can affect your claim-free years and premium. TPL insurance only covers damage to others, while TPL + Casco (All-risk) insurance also covers damage to your own car. Some insurers offer a "third party use" option for extra protection.
What are the risks of lending my car?
The biggest risks are damages, rising insurance premiums and loss of claim-free years. In addition, you as the owner are liable for traffic violations and fines. In case of theft, an insurer can be difficult if the car is lent voluntarily. Make sure you make clear arrangements with the borrower.
Who is liable for damages if I loan my car?
You as the owner are usually liable, even if someone else causes damage with your car. The damage is then recovered from your insurance, which can affect your claim-free years and premium. So it is important to make proper arrangements in advance.
What happens if my friend or family member is fined in my car?
Traffic fines are initially sent to the license plate holder. So you have to make sure that the fine is passed on or recovered from the driver who committed the offense. This applies to speeding tickets, parking fines and other traffic offenses.
Should I inform the insurance company if I loan my car?
For occasional use you usually do not need to inform the insurer. For structural or long-term use, for example if someone borrows your car for several weeks, it is wise or even obligatory to report it. This way you can avoid problems in case of damage claims. Check your insurance policy conditions or contact your insurer.
Never underinsured
Put together your own package
A wide range
We compare all insurers for you, saves time again
Help from our experts
Can't figure it out? Our experts are always ready to help you
We can be reached via chat, WhatsApp, phone or email
Questions? Contact us if you want to know more.
We are here Monday to Friday from 08:00 to 18:00.