Should you let a mate borrow your car?

Helping a friend or loved one is something most of us don’t think about twice but, when it comes to loaning out your car, it can pay to pause for thought. Your car insurance policy is carefully determined by your own details and usage, so what happens if a friend or relative borrows your car, and then they have an accident?

Here are a few things you can do to put your mind at ease.

Firstly, consider how well (or otherwise) you know the person you’re about to loan your car to. Are they generally responsible, and do they have a good driving history? If you have a policy with Bingle, other drivers that you allow to drive your car will be covered, however, additional excess will apply if they are not listed on your policy.

Next, consider what sort of insurance cover you have – is it a comprehensive policy, or third-party insurance? A comprehensive policy provides cover for accidental loss or damage to your own car and accidental damage to someone else’s car or property.

A third-party property damage policy will only provide cover for damage to someone else’s car or property caused by the use of your car.

If you know someone will be driving your car regularly you may want to consider letting your insurer know and listing them as a driver on your policy. Depending on your insurer an unlisted driver may incur an additional excess at claim time if they were driving your vehicle at the time of an incident.

The best course of action? Jump online or contact your insurer and add that person to your policy before handing over the keys.

If your car is insured with Bingle, it’s super-easy to add another driver to your policy. Simply head to the Bingle website and follow the, ‘My Account’ link to access the self-service portal to list another person as a driver.

The person you add must also meet all of Bingle's underwriting guidelines. This may change your premium, however it will mean avoiding paying an unlisted excess at the time of a claim.

To read up on what types of policies are available, and to check that you’ve got the right cover that works for you and your mates, head to Bingle.com.au.

Disclaimer: Before buying this insurance issued by AAI Limited trading as Bingle Insurance read the PDS and consider whether it is right for you. Go to bingle.com.au for a copy. TMD also available.