Must-read when lending your car | Be aware of the risks of lending your car and be careful when your car insurance expires!

When family and friends ask to borrow a car, car owners are usually willing to lend it out unless there's a specific reason, as long as they explain the operating precautions beforehand and add a "be careful." But have you ever considered that lending your car carelessly could easily invalidate your car insurance, and in serious cases, lead to legal consequences? This article will help you understand the various risks of lending your car and the things you should be aware of

To avoid the risks of lending your car, it's most important to ask all the questions clearly

Legally, car owners are absolutely allowed to lend their cars to others; simply put, it's lending a piece of personal property. Most car insurance policies allow car owners to lend their vehicles. However, once your car is in the hands of a friend, the driving risks are no longer under your control, and in the event of an accident, the car owner may be held liable

1. Make sure the borrower's driver's license is valid.
   When a friend asks to borrow your car, you might readily agree, thinking you should help if you can. However, remember to check that the borrower's driver's license is still valid. If the borrower is found driving without a license for any reason, such as a traffic accident, not only the borrower but also you, as the car owner, could face criminal charges for unlicensed driving. A simple check can effectively protect both parties and avoid unnecessary trouble.

2. Do not lend your vehicle for commercial purposes.
   In recent years, the use of private cars for commercial purposes has become common, especially for passenger transport and food delivery. If the vehicle owner has purchased private car insurance, any accidents or problems arising from commercial use will not be covered. Vehicles used for commercial purposes must have commercial car insurance. Furthermore, illegally driving a car for rental purposes (commonly known as a "white-plate car") is a criminal offense. As the car owner, you must first clarify the intended use of the vehicle to avoid your vehicle not being covered by insurance and potentially facing legal consequences.

3. Pay attention to the insurance terms and conditions of car rental apps.
   Car rental apps have become increasingly popular in recent years, allowing car owners to rent out their idle vehicles to other drivers. Some car rental apps already provide insurance for users, automatically superseding the car insurance purchased by the car owner. Having a third party cover your insurance and compensation seems great; however, be aware that the insurance terms may have different restrictions, or if you encounter situations mentioned earlier where you are not covered, such as if the borrower uses the car for commercial purposes, the car rental app's insurance will not provide coverage.

Additional precautions for borrowing a car

1. expensive
   cars or high-powered vehicles should be aware that their car insurance may have limitations before lending their car, such as restrictions on the number of drivers or even prohibiting the vehicle from being lent out. This is because the driving risks of these vehicles are generally higher, so insurance coverage is usually limited to the owner. To protect themselves, car owners must understand the insurance details or add those who frequently borrow the car as registered drivers. They should not exceed the originally agreed-upon number to avoid invalidating their car insurance.

1. usage information with
   the insurance company to maintain coverage. If the insurance company discovers that the number of frequent users or other changes have not been updated, they have the right to suspend your car insurance and refuse to process any claims. To avoid this situation, promptly provide the insurance company with the latest vehicle usage information so they can continue to provide you with coverage.

Adding a name to a car insurance policy is by no means difficult

Adding a name to an existing car insurance policy is often considered troublesome or even unnecessary by car owners. Sometimes, if a car is only lent to a friend once or twice, the insurance company won't require the owner to add the name, only to remove it a few days later. However, when a car owner realizes they will be adding or already have a frequent driver, they inevitably need to update their policy with the insurance company to ensure coverage

Adding a name to a car insurance policy is very simple. Just apply to the insurance company, and the process usually takes a few days. Note that the driver being added to the policy typically needs to meet the following conditions:

• Minimum 2 years of driving experience (or have held a driver's license for more than 2 years)

• 25 years of age or older

• I have not filed any accidental death claims in the past 5 years

Even if a newly added driver does not meet the above conditions, the driver will still be insured, but a higher fee will be charged when adding their name to the policy, usually 40% of the premium. Most policies allow a maximum of four drivers to be insured. Usually, the second driver is not charged, but there is an additional fee for the third driver and so on. Depending on the insurance company, insurance companies generally charge 10% of the premium for the third driver and 20% for the fourth driver

Choose a car insurance company that provides attentive service

There are many things to be aware of when lending your car, whether it's adding a name to the deed or making a claim. You'll need a reliable auto insurance company to provide coverage and follow-up. Want a comprehensive analysis before deciding which auto insurance company to choose? AWM Auto Insurance Quotation Service makes it easy for you to compare car insurance prices, and industry professionals are available to answer all your policy questions, ensuring you get the best car insurance service