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Lending Your Recreational Vehicle - Know the Insurance Risks First
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Lending Your Recreational Vehicle - Know the Insurance Risks First
Summer in Ontario is made for adventure, and whether it’s a boat, an ATV, a camper, or an RV, recreational vehicles help us make the most of it. But what happens if you lend one of these vehicles to a friend or family member? Before you hand over the keys, it’s important to understand how insurance works in these situations and how a simple favour could turn into a costly mistake.

What Owners Should Know

Insurance Follows the Vehicle, Not the Driver: In most cases, your insurance coverage travels with the vehicle, not the person driving it. That means if your friend damages your ATV or causes an accident in your boat, it’s your policy that will respond—and your premiums that could increase.

You’re Still Liable: If your camper or RV is involved in a collision while being driven by someone else, you may be held legally liable, especially if the driver was negligent or impaired.

Check Your Policy Terms: Some recreational policies restrict who can operate the vehicle. If the person you lend to isn’t listed or doesn’t meet age or licensing requirements, your insurer may deny the claim.

What Borrowers Should Know

Ask About Coverage First: Before borrowing, ask the owner if their policy permits other drivers and what the deductible and liability limits are. You may be personally responsible for any damages not covered.

You Could Be on the Hook: If an accident exceeds the owner’s liability limits, the injured parties may come after you financially. Additional liability coverage or a personal umbrella policy can help protect you.

Some Toys Require Endorsements or Specialty Coverage: For example, boats with higher horsepower engines or RVs used in the U.S. may need additional endorsements. If these aren’t in place, the policy could be void.

Tips for Safe Lending:

  • Review the insurance policy before lending or borrowing.
  • Ensure the driver has a valid license appropriate for the vehicle.
  • Limit use to responsible, sober individuals.
  • Consider a signed lending agreement to clarify responsibilities.
  • Contact your insurance broker for guidance - before the trip, not after an accident.
At Gibb Insurance, we want you to enjoy your summer safely and with peace of mind. Whether you own the vehicle or plan to borrow one, let’s review your policy together to ensure you’re fully protected. 519-736-8228