Borrowing a friend’s car for a quick errand or a weekend trip seems simple enough. It is a common favour between friends, but it comes with a lot of confusion about insurance. Many drivers make assumptions about what their policy covers, which can lead to serious financial and legal problems if an accident happens. Understanding the facts behind the myths is important for both the driver and the car owner.
Myth 1: My comprehensive policy covers any car I drive
A common belief is that if you have a comprehensive car insurance policy, you are automatically covered to the same level when driving a friend’s vehicle. This is one of the most significant misunderstandings. Most Irish insurance policies that include a ‘driving other cars’ extension provide only third-party cover as standard for this situation. Citizens Information guidance explains the requirement. This is the most basic level of insurance required by law.
Third-party only cover means your insurance will pay for injury to other people or damage to their property if you are at fault in an accident. It does not cover any damage to the car you are borrowing. If you crashed your friend’s car, you would be personally responsible for the repair costs, which could run into thousands of euro. It also will not cover theft of the car or damage by fire while it’s in your care.
Myth 2: The car owner’s insurance will handle everything
Another frequent assumption is that if something goes wrong, the owner’s insurance policy will sort it all out without any consequences for them. While the owner can make a claim on their own policy for damage to their car, this will almost certainly impact their insurance record. A claim will likely cause them to lose some or all of their no-claims bonus, leading to higher renewal prices for years to come.
The car owner will also have to pay the policy excess on the claim. This is the initial amount of the claim that the policyholder must pay themselves. Depending on the policy, this could be several hundred euro. This situation can put a huge strain on a friendship, as the owner is left with a financial loss and long-term insurance implications because of an accident they were not involved in.
Myth 3: I can borrow the car for as long as I need to
The ‘driving other cars’ extension on an insurance policy is designed for occasional and emergency use only. It is not intended for regular or long-term borrowing of the same vehicle. If you start using your friend’s car for your daily commute or for several weeks at a time, you could be in breach of the terms of your insurance policy.
Insurance providers could view this regular use as a form of undeclared vehicle access. In the event of a claim, they might refuse to pay out if they determine the car was effectively being used as a second vehicle. For regular access, the correct approach is to be added as a named driver to the car owner’s policy. This ensures you have the proper cover in place, although it will likely increase the policy premium for the owner.
A practical scenario of borrowed car trouble
Imagine this situation. David borrows his colleague Anna’s car to pick up a large purchase. David has a comprehensive policy on his own car, which includes third-party cover for driving other vehicles. On his way back, he misjudges a turn into a tight parking space and scrapes the side of Anna’s car against a pillar, causing a deep scratch and a dent along the door.
David assumes his insurance will cover it, but he is mistaken. His policy only covers damage to third parties, and the pillar is the only ‘third party’ involved. The damage to Anna’s car is not covered by his policy. Anna is now faced with a choice: pay for the repairs herself or make a claim on her own comprehensive policy. If she claims, she must pay her excess and will lose a portion of her no-claims bonus, which will increase her premium at renewal. The situation creates an awkward and expensive problem for both of them.
Myth 4: Permission from the owner is all that matters
Having the owner’s permission to drive their car is essential, but it is not the only legal requirement. You must also have the correct insurance in place to be legally compliant on the road. Driving without at least third-party insurance is a serious offence, carrying penalties such as fines, penalty points, and even potential disqualification from driving.
Before you get behind the wheel, both the driver and the car owner should be certain that adequate insurance cover is active. This involves the borrower checking their own policy documents to confirm they have the ‘driving other cars’ extension and understanding its limitations. Simply assuming you are covered is a risk that is not worth taking. There are many car borrowing myths that can lead to confusion, so confirming the details is always the best course of action.
Clearing up these misunderstandings before handing over the keys can protect your finances, your driving record, and your friendship. A quick check of insurance documents and an open conversation about responsibility can prevent a lot of trouble later on.