Car Rental Even With Friends Only With A Contract

2023 Author: Eric Donovan | [email protected]. Last modified: 2023-08-25 09:36

Even among friends, you should only rent your own car against a contract. Because in the event of a self-inflicted accident, the owner is usually upgraded by his insurance,

Fountain pens and women … that's where friendship ends, at least according to an old "popular saying". But with your own car you like to help a loved one out of a jam, whether it's moving, bulk shopping or an urgent job. Since lending is usually considered a service of friendship, hardly anyone thinks of drawing up a contract for it. Such a document is advisable in the event of a self-inflicted accident.

In the event of a crash, liability insurance covers the costs of personal injury or property damage to the other party. But this leads to a downgrade of the no-claims bonus and thus to higher insurance premiums. This can add up to several hundred euros a year. Without prior agreement, the owner of the automobile must pay for this damage.

Holder has to pay for damage

The owner must also pay for the damage to his own vehicle. If he has fully comprehensive insurance, his insurance company will take care of this, but usually a deductible has to be paid. The vehicle owner can try to get the money back from the person who caused the accident, i.e. the borrower. But this can be difficult in practice. For this reason, before renting the vehicle, a written arrangement should be made about who will pay for any accident damage or downgrading to the no-claims classes. Templates for such contracts can be found on the Internet, for example on the websites of the automobile clubs.

In addition, you should only lend your car to someone you know has a driver's license. Because when driving without a driver's license, the comprehensive insurance does not have to pay for possible accident damage. "The insurance usually pays for liability damage. It can, however, reclaim part of the expenses from the driver and the insured. In addition, there may be a criminal complaint," explains Karl Walter from R + V Versicherung. In addition, possible restrictions due to the insurance contract must be taken into account. If, for example, it has been agreed with the insurance company that only the owner may drive himself or only drivers aged 25 and over, this must also be taken into account when renting out. Otherwise, the insurance company can change the contract and demand additional contributions.

In the worst case, the insurance company can even reduce its benefits. However, the owner does not have to pay for traffic violations by the borrower, since in Germany there is no owner liability for offenses in flowing traffic. The driver always has to pay the fine or the costs for a criminal complaint out of pocket. Only in the event of parking and stopping violations can the vehicle owner possibly remain seated at the cost of the ticket. (mid)