Auto insurance and steering wheel loan: what happens in the event of an accident?
If you lend your vehicle and the driver causes an accident, your Civil Liability included in your auto insurance contract will operate in the same way as if you were the driver at the time of the accident. The insurer will take care of the victim's compensation as if you were the driver.
If the driver to whom you have loaned your car is the victim of an accident (non-at-fault accident, therefore), it is the person responsible's insurer who will proceed with the compensation.
The steering wheel loan coverage usually ends there. The guarantees in your contract are often limited when you lend your car. Even if you are fully insured, there is no indication that the driver of the loaned car will receive compensation if he is injured in an accident. Your personal driver's guarantee will not necessarily work for him (it all depends on the contract).
Likewise, if your car suffers damage, it will in principle not be covered by the insurance, even at all risks.
Concretely, most often, when you lend your vehicle, the driver is insured with a third party, regardless of the formula you have subscribed (to the third party, intermediary or all risks).
Important note: if the person to whom you lend your vehicle has a responsible accident, your own bonus-penalty coefficient will be affected.
Auto insurance: what deductible in the event of a steering wheel loan?
Some insurers allow the occasional steering wheel loan, but provide for an increased deductible in the event of a responsible accident. This can be increased by a certain percentage, doubled ... Everything here depends on the car contract.
The deductible is the amount that remains the responsibility of the insured in the event of a claim. This must necessarily be specified in the conditions of the contract.
By way of illustration, Direct Assurance provides, under its conditions, that an additional deductible will be applied in the event of a claim caused by your vehicle loaned to a third party. See the information note published by the company:
Direct Insurance Steering Wheel LoanInformation Note Direct Insurance - Auto Insurance
Direct Assurance information leaflet - Steering wheel loan auto insuranceDownload
What restrictions on the loan of a steering wheel for a young driver?
Young drivers are "treated" separately by insurers for a "simple" reason: they represent more risk for insurance companies. This is the reason why they pay a premium over experienced drivers.
This young driver status also has an impact in terms of steering wheel loans. Some insurance contracts allow the loan of a vehicle, except for young drivers. This point must necessarily be specified in the contract.
If you still lend your car to a young driver (your son or daughter, for example) and the latter has a responsible accident, the guarantees in your contract will simply not apply.
If you have any doubts, it is essential to contact your insurer.
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Faq
Is the steering wheel loan authorized by my car insurance?
In the majority of cases, yes. The occasional steering wheel loan is accepted by most auto contracts, without you having to declare it. If in doubt, check the terms of your policy.
What happens in the event of a responsible accident when I have lent my vehicle?
If the person to whom you have lent your vehicle has a responsible accident, your auto insurance will play to compensate the victim (Civil Liability guarantee). Your bonus-penalty coefficient will be impacted.
In which cases should I declare a secondary driver to my auto insurance?
Quite simply, when the use of your vehicle by someone other than yourself becomes regular. By declaring a secondary driver, the latter will enjoy the same guarantees as you (as the main driver). This is not always the case for a simple steering wheel loan.
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