Irregular Insurance: New auto insurance policy for borrowed vehicles

Quebec, Quebec Quebec’s financial regulator and an auto insurance group recently announced the launch of a new auto insurance policy, specifically designed for drivers who do not own a vehicle.

Autorite des matches financiers (AMF), Quebec’s financial regulator, and Groupement des assureurs automobiles (GAA), an insurance group, announced the launch of Quebec Auto Insurance Policy No. 2 on Oct. 14. The policy and its endorsements cater to drivers who do not own their own vehicle and use vehicles belonging to third parties—such as a friend or parent—but wish to benefit from auto insurance.

According to AMF and GAA, the policy reflects the emerging needs of consumers, who are more frequently turning toward ridesharing and the sharing economy.

“This paradigm shift requires a new form of coverage for drivers who do not own a vehicle,” said Johanne Lemanque, general manager of GAA. “The new policy offers them an innovative product that provides coverage for the vehicle borrowed, as well as civil liability coverage.”

Policyholders will be covered when the rented or borrowed vehicle damages property, or injures or kills another person. The policy also provides coverage when the rented or borrowed vehicle is stolen.

Losses that occur while the vehicle is being used as a “taxicab, sightseeing vehicle, bus, coach or other chauffeur-driven vehicles” are excluded, although they could potentially be covered through the policy’s endorsements.

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