Implications of lending a bike | GTAMotorcycle.com

Implications of lending a bike

daught

daught

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I am going away for a month. I am willing to lend my bike to a friend, but I wonder what is the worst case scenario if he crashes. I don't really care about my bike, so that's not an issue. I am worried about insurance. Who gets nailed if he is at fault in a crash?


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if your friend will ride it more than once or twice in a year, your friend MUST be named on someones policy.
If the bike is located at your friends house, and he rides it once, your friend MUST be named on someones policy.
If he gets caught ridding your bike during that month without being a named driver, he will be considered an uninsured driver. (driving without insurance). You will be liable for damages, and you could be charged for insurance fraud.


Either he can be put under your policy as a secondary driver (he crashes your rates go up), or he will have to get his own policy (he crashes your rates don't go up).
 
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I've lent out my bike many times to friends, and often for a week or so. I've never had any issues, and even when I called my insurance company (state farm), they told me it was fine as long as he is a licensed driver. They did say that "when you lend out your bike you lend out your insurance so if he was in an accident my rates will go up (and it happened). He was in an at fault accident (only him involved) and I did not make a claim on this, however the town where he crashed made an $800 claim for "clean up" and thats all it took and my rates went up 30%. I find it very hard to believe you could be charged with insurance fraud if you simply lend out the bike and fail to list that person as an occasional driver.
 
lending out your bike is one thing, but when that person you've loaned the bike to becomes the defacto primary driver for any significant length of time, the insurance companies start to look at that as insurance fraud, especially if the friend lives in an area which places them at a higher risk (and so cost) bracket.

Examples: having a vehicle insured under one person at a lower rate so that another person can use it as the primary driver at a discount
 
daught said:
I am going away for a month. I am willing to lend my bike to a friend, but I wonder what is the worst case scenario if he crashes. I don't really care about my bike, so that's not an issue. I am worried about insurance. Who gets nailed if he is at fault in a crash?
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This is a good question for your insurance provider, because you will certainly get several conflicting opinions from guys on the interweb making stuff up.
 
You do. And may run into problems with insurance if they find out he is actually the primary rider while you're away.

Same as any other vehicle.
 
Thx for the info. Great to see it's not too expensive to investigate bike lending as fraud, but it's to expensive to investigate real fraud...
 
daught said:
Thx for the info. Great to see it's not too expensive to investigate bike lending as fraud, but it's to expensive to investigate real fraud...
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it costs more to catch real criminals :p
 
You won't be prosecuted for fraud but, you could be denied coverages/claim. If there is liability and third party damages, you could end up on the hook because you assumed things would be ok.

It's so easy to call your broker or agent and tell them the deal and get the proper advice. I don't think they will ask to add the buddy to the policy but, you never know.


It's also the same thing about your tenant and house insurance. You can tell them you are gone for a month but, have someone watching the place while you are gone. That's good practice.

If you don't, they may help you avoid a claim denial for vacancy of property........
 
Have your story straight and you'll be fine. If the worst happens, how will they know its not the first and only time you've lent your bike to him?

Real answer, with a question: how good of a friend is he?
 
dasiffy said:
if your friend will ride it more than once or twice in a year, your friend MUST be named on someones policy.
If the bike is located at your friends house, and he rides it once, your friend MUST be named on someones policy.
If he gets caught ridding your bike during that month without being a named driver, he will be considered an uninsured driver. (driving without insurance). You will be liable for damages, and you could be charged for insurance fraud.


Either he can be put under your policy as a secondary driver (he crashes your rates go up), or he will have to get his own policy (he crashes your rates don't go up).
Click to expand...

Liability will always be covered with an insured vehicle. That's why we pay so much for multiple vehicles in Ontario; no matter who is driving, basic coverage and accident benefits apply.

It will ding OP's insurance record, but I don't know if it will look like an at-fault in the same way as if he was driving.

OP's friend may get in some **** with fraud if it's an issue, and OP may get caught up in it. Chances are, it's perfectly reasonable to just say he was riding it once.
 
ive asked my broker to add my gf to my policy as she occasionally rides my bikes (more than a handful of times a year) but my broker advised that it wasn't required as she isn't living with me

take that for what you will
 
The thing about keeping a story straight? When you experience a collision or run into trouble or something, your mind doesn't keep it top of mind. There are statements to police or witnesses or medical professionals and the claims adjuster etc. Harmless statements that doesn't seem to have any relevance can turn into something very relevant. Where do you live? Where were you going? Where were you coming from etc. If you are unconscious and wake up? I have friends I the insurance industry and they tell me how folks will just spill their guts about things all the time. Just leaving the bar or a buddies place after drinking all night and playing poker etc.........Anyways, it's your bike, your insurance, do what you like.
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