A global shortage of electrical components, coupled with a reactive increase in the price of second-hand vehicles from demand, has led to the cost of purchasing a car increasing in the UK. This market boom has made it harder for new drivers to get on the ‘ladder’ of car ownership, leading to increased instances of car-sharing in households, or car-pooling as part of a commute. Whether a new driver or someone between vehicles, license holders without a car have felt the pinch – and the number of people borrowing the cars of friends and family could well be set to rise. But what are the legal implications of letting someone borrow your car?

Is it Legal to Lend Your Car to Someone?

Simply put, it is perfectly legal to lend your car to any UK citizen who holds a valid UK driver’s license and is not sanctioned from driving on UK roads. There are no laws to prevent the lending of the vehicle itself to friends or family – however, there are incredibly strict laws relevant to the act which are of particular importance to heed. These laws relate to insurance, and can carry significant punitive measures if broken, from the seizing of the vehicle to points on the license of the uninsured driver and even a four-figure fine.

Even if a driver is insured to drive, their insurance plan may not cover them to drive someone else’s vehicle – rendering them an uninsured driver for the period of time they are in control of your vehicle. You as the lender would not fall foul of the law, but the person you lend to would. In order to ensure full compliance with the law when lending a vehicle, getting temporary car insurance would cover the person borrowing the car for a set period of time.

What Happens if the Driver is Stopped by Police?

In the event that the driver of your borrowed vehicle is stopped by police, the encounter would carry out like any usual traffic stop if the driver’s insurance covers them to be driving your vehicle – whether temporary car insurance, part of a third-party plan or a comprehensive plan which explicitly allows them to drive other vehicles. If the driver of the car is not covered by their or your insurance, they would be immediately prevented from continuing to drive the vehicle, which could be seized as part of the stop. 

Who Is Liable if Your Car is Involved in a Collision?

Temporary car insurance is not just important to ensure the legal borrowing of a vehicle – it can also protect you as a lender in the event of a collision involving your vehicle. In one case study of such a collision, the driver was uninsured despite believing their insurance covered them to drive another’s vehicle. When involved in a collision, the five-figure insurance bill was passed on to the vehicle’s owner instead of the driver.

Driving uninsured is no laughing matter with regard to the law, and should be taken seriously by both yourself and anyone you intend to lend your vehicle to. Otherwise, you are perfectly entitled to let others borrow your car.