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Can a Car Be Loaned to Others?

1 Answers

Arabella

07/30/25 5:38am

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.

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