How to Lend Your Car to Family and Friends

Yes – you can lend your car to anyone, as long as they’re insured to drive it.

If someone has comprehensive insurance, don’t assume they can drive any car. That’s rarely the case, and it’s not a valid excuse if they’re pulled over for driving your car without the right cover in place. Driving without insurance is a serious offence. It can lead to:

• Fines
  
• Up to 6 penalty points
  
• Disqualification
  
• Higher insurance premiums in future

So, before anyone else gets behind the wheel of your car, they’ll need to arrange proper cover.

There are a few different insurance options for lending your car to a friend or family member.  Here’s a breakdown of each:

Temporary Car Insurance

If you’re only lending your car to them now and then, temporary car insurance is the simplest option. Whether it’s for a few hours, a day, or a few weeks, they’ll be fully covered with no effect on your no-claims discount.

Temporary cover offers:

• Flexible durations (from 1 hour to 28 days)
• Instant comprehensive protection
• Zero impact on your existing insurance

It’s quick, affordable, and the most convenient way to lend your car to friends and family.

Driving Other Cars (DOC) 

Some comprehensive insurance policies include Driving Other Cars (DOC) cover, but it’s rare these days, and usually only applies in emergencies, offering third-party cover at best. If your friend or family member thinks they have this, ask them to check their certificate of insurance carefully. Even if they are covered, third-party protection won’t cover any damage to your vehicle, so it’s usually safer (and more reassuring) to have them take out a separate temporary comprehensive policy instead.

Adding Them as a Named Driver

If you regularly lend your car to the same family member, adding them as a named driver to your annual policy might be best. However, keep in mind that adding them to your policy will impact your premiums, and if they ever need to make a claim, your no-claims discount will be impacted.  If you’re adding someone to your policy to lend them your car, you need to keep in mind that you, the policyholder, must do most of the driving. If the additional driver is using the car more than you, it can be seen as insurance fronting, and it could invalidate your policy.

Separate Annual Policy

If the person borrowing your car drives it often or wants to build their own no-claims discount, it might be worth them taking out their own annual policy on your vehicle. This could also work out cheaper for you if they’re classed as high risk (like young drivers).