What you Should Know Before Letting Anyone Borrow Your Car

Imagine this scenario:

You decide to go on holiday for a week with your family. You're leaving your car behind, because who needs it when you'll be spending every day soaking up the sun on a beach somewhere? Your mate, Jerry, has promised to look after your pets and plants while you're away.

On the second day of your holiday, Jerry phones you to let you know that his car broke down in front of your home. He's having it towed to a mechanic, but it could be days before they fix it. In the meantime, he has no way to get to the store or even get to work. Could he borrow your Land Rover for a few days?

You've known Jerry all your life. He's honest and reliable. Plus, he's doing you a favour by taking care of your home while you're enjoying the sun. What could go wrong? You gladly tell him where the keys are and go back to your wonderful holiday.

Five days later, you arrive home to find that you're being prosecuted for a criminal offence. Not only could you could you receive up to 8 points on your driving licence, but you could have to pay a £5,000 fine.

What happened?

Here's what you didn't know: Jerry is uninsured. While you have the best insurance on your Land Rover, this doesn't matter. If Jerry was stopped by the police for any reason and could not produce his own insurance, you're the one that's held responsible. It was your decision that led to an uninsured car being on the road. Whether you knew he wasn't insured or not, you'll likely have to go before the magistrates for this crime.

The only way you could get out of this situation is if you could prove that you didn't tell Jerry he could borrow your car and that you weren't driving the car at the time. Unfortunately, this isn't the case. You gave Jerry your permission to drive your Land Rover, and because of it, you have to face the consequences of his poor choices.

What's the moral of this story? Peer to peer lending when it comes to cars is an obstacle course that has to be navigated carefully. If you don't take the time to ask all the right questions and make an informed decision, you can end up having to pay money out of your pocket for mistakes that weren't even yours.

Further Implications

You're already facing a huge fine and points on your licence, but there may be even more consequences to your friend Jerry's actions. For instance, your insurance company may not want to pay for any damages caused by an accident that occurred while Jerry was driving.

Any Land Rover parts that were broken or damaged in any way may need to come out of your own pocket. If the accident was serious and severe damage was done, replacing these car parts can get expensive.

What do you do?

The best solution for making sure this never happens to you is to purchase UK temporary car insurance before lending your vehicle out to anyone, even your best mate. This type of insurance was originally created for businesses that dealt with the motor trade, but is now available to anyone. Temporary insurance generally lasts up to 28 days, depending on your policy, and will cover any claims during that time by a driver other than yourself using your Land Rover.

Not only will this prevent you from having to deal with large fines, points on your licence, and replacing car parts out of pocket, but it will also save your original policy. If an accident does occur under the temporary insurance policy, it won't affect your original policy at all. This means that if you aren't involved in any other accidents during the year, you can still qualify for a no-claims discount when you renew your insurance.

The Checklist

Want to save money by avoiding temporary insurance for your Land Rover? While this is a risk, it's your decision to make. If you want to do this, however, it's best that you take the time to evaluate the situation carefully.

• Have your friend produce their driving licence and look at it carefully. Make sure it is valid.

• Take a look at your friend's insurance policy information. Make sure they have proof of insurance and that it is up-to-date. Don't be afraid to call the insurance company and check that it is still valid. Your mate might be a little miffed, but it's your licence and wallet on the line.

• Come up with a plan on how and where the car can be used. Check the odometer before you lend the Land Rover out so you can tell later if the agreement was broken or not.

• Create an agreement regarding what would happen if your mate got a ticket or got into an accident while borrowing your car. Who would pay for it? Who would buy new car parts? Would you split the cost with them? Sign the agreement so there is something in writing that you can use later on if necessary.

• Check the Land Rover over thoroughly and take pictures of the inside and out before lending it. You'll want to know if any Land Rover parts are failing or if there are scratches and dings to be concerned about before your friend borrows it. This can help you avoid an argument later if the car comes back with damaged car parts or a dent in the exterior.

• Do not lend your car out if you can not be present to do this checklist before they take the car.

Loaning a car to a mate might seem like the nice thing to do, but it can get you in trouble with the law quickly if you're not careful. Always make sure the friend you lend your Land Rover to has insurance. If they don't, do not let them into the car until temporary insurance has been purchased for them. This will save you money on car parts and prevent you from facing criminal charges because of their negligence.