Cars are without doubt one of the most useful vehicles to own in the modern world with each model offering convenient travel experiences and comfort during long journeys. According to the most recent data, there are almost 40 million registered motor vehicles in the UK, proving just how popular they are.
However, their convenience and comfort mean other people may be looking to take advantage of your ownership and ask to borrow the car for themselves. While you may want to help friends and family members out by saying ‘yes’ to borrow your car, you may not be aware of the implications it can have.
Vehicle lending carries potential legal, safety and relationship risks, which can be difficult to navigate. Plus, it can affect your insurance premiums too.
To help you come to a decision about lending your car to others and understand what you need to do to make it legal, our guide is here to help you. We’ll look at all the risks involved, so you see the full picture before making a decision. Read on to find out more.
What are the insurance and legal implications to think about?
It’s illegal to drive without the correct insurance in the UK and failure to do so could lead to a fixed £300 fine, six penalty points on your licence and a possible driving ban. That’s why you should always check your car insurance to see if it covers additional drivers.
If it does and the person borrowing the car is a named driver on your insurance premium, they may be able to drive without any issues. The driver will typically need to take out their own insurance to cover damage too, however. By doing so, you should have greater peace of mind when they borrow your vehicle.
Are there safety implications?
One other thing to consider is the safety of your vehicle. If your friend or family member appears to be a reckless driver and damages your car, it could lead to your car being written off. We recommend only letting responsible drivers use your car to keep the risk of damage to a minimum.
What are the personal relationships implications to consider?
With such an expensive item being borrowed, anything that goes wrong could damage relationships, so you should manage expectations from the start. Make sure the borrower knows that they must give the car back as soon as you ask for it and let them know that they should cover fuel costs during use and pay for any damage.
Setting these rules out at the start should make it easier to prevent any relationships from breaking down in the process.