Young and Reckless – What you need to know before letting your young adult borrow your car in Ontario

Part of learning how to drive is using a car without your parents looking over your shoulder. Letting your young adult borrow your car is fine as long as you ensure that they know and understand the full extent of the consequences.

Here’s what you need to know

If you are the owner of a vehicle that you are going to loan to someone who is under 21 or has a g2, you have to be absolutely certain that they won’t have a drop of alcohol in their system.


Besides the obvious reasons for not driving impaired, if you are the owner of the vehicle you are held responsible. If there is alcohol in the system of an under 21 or g2 driver, and they are in an accident, your insurance plummets.

When alcohol is found in their system your insurance goes from $1 million (or $2 million depending on your policy) and moves down to $200,000. You might think $200,000 is still a lot of money, but if someone is seriously injured that amount will not go far.

What does this mean?

When the $200,000 of insurance runs out, then they will start going after your assets. So say goodbye to your retirement fund and any other assets that will be left open for the taking.

What should I do?

As with most things, when it comes to letting your young adult borrow your car knowledge is power. Make sure they understand the responsibilities and consequences that come with driving. Most young adults won’t equate one beer with their parents retirement fund disappearing, but it’s important that they understand what could happen so that they can make better decisions. The implications are very serious. When in doubt, consider not letting them borrow your car.

To learn more about the implications on car insurance, watch Brenda Hollingsworth discuss Ontario’s laws around drinking and driving on CTV Ottawa Morning Live.

Have questions about an accident? Call a personal injury lawyer such as the team at Auger Hollingsworth at 613-233-4529 or request our book Injured Victim’s Guide to Fair Compensation.

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