Can a Car Be Loaned to Others?
2 Answers
Loaning a car to others carries risks and is not advisable. There are potential issues with the car: the borrower may not be familiar with the vehicle, and minor problems could lead to traffic accidents, for which the owner would be held responsible. There are also concerns with the borrower: they might have just obtained their driver's license and lack driving experience; they could be driving under the influence of alcohol; or their license type may not be suitable for the vehicle. For someone who has just gotten their license, the likelihood of minor collisions is high, and if they run a red light and incur penalty points, the owner would have to bear the consequences. Additionally, if the borrower drives under the influence, the car could be impounded. In case of an accident while the car is loaned, insurance may refuse to cover the damages: after purchasing a car, owners typically buy car insurance. Normally, if the owner is involved in an accident, they can directly contact the insurance company for assistance. However, if the car is loaned to someone else and an accident occurs, the insurance company may deny the claim. As stated in the insurance policy, the insurer can refuse coverage for damages caused by driving without the insurer's consent.
I think lending cars requires extra caution, because I've seen too many troubles caused by it. The most critical issue is legal liability - if an accident happens while the car is out, the owner might bear joint liability, and insurance companies may dispute claims. Last time, my old classmate lent his car to someone who drove without a license and crashed, costing him tens of thousands in compensation. There's also an easily overlooked hidden cost - borrowers might not truthfully report mileage or traffic violations, and you only discover a pile of penalty points during annual inspection when it's too late. If I really must lend my car, I'd definitely check the borrower's license, clarify details like fuel costs and violation handling in advance, and preferably sign a simple agreement.
