Liability in a Car Accident with a Borrowed Car in Nova Scotia

June 12, 2025

Car accidents are stressful enough, but they get even more upsetting when you’re behind the wheel of a borrowed car. In Nova Scotia, figuring out who handles the bill and whose insurance kicks in isn’t always cut-and-dried.

If you were in a borrowed car accident in Nova Scotia, you need the right legal assistance. Our car accident lawyers at Preszler Injury Lawyers can assess your situation and advise you on your options.

If You Lend Your Car and There’s an Accident – Who Pays?

If you lend out your ride and your friend ends up in an accident, the question of who foots the bill can become a real head-scratcher. This is why you need a car accident lawyer to sort everything out.

Usually, the car’s insurance policy takes the lead. That said, details tend to shift based on the situation and the exact terms of the policy. The owner’s insurance often covers the damage, but what the driver does matters quite a bit.

Primary vs. Secondary Car Accident Insurance Coverage—What’s the Difference?

It’s vital to understand primary versus secondary insurance. Primary coverage is the first policy to be paid out when car accident claims arise. As the name suggests, this policy typically plays a central role when you need to cover your losses in a car accident.

Primary Car Accident Insurance Options in Nova Scotia

When you get into a car accident in Nova Scotia, your primary insurance is the first type of coverage that usually kicks in. Generally speaking, this protection comes in a few types. One form, called Third-Party Liability, deals with the damages or injuries you might unintentionally cause another person.

Then there’s Accident Benefits—a catch-all safety net covering your medical bills, income loss, and other expenses regardless of who’s to blame.

Finally, Direct Compensation—Property Damage (DCPD) covers auto repairs to your car if the other driver with coverage is to blame.

For example, if you find yourself at fault in an accident, your Third-Party Liability would typically pay for any damage to someone else’s vehicle and cover their injuries.

Secondary Car Accident Insurance Options in Nova Scotia

Sometimes, the initial layer of insurance is just not enough, so many drivers supplement it with secondary coverage. This extra protection is more varied. Collision insurance, for instance, is designed to cover the damage to your vehicle if you hit another car or even an object.

Then there’s comprehensive coverage, which covers losses from non-collision events such as theft, vandalism, or extreme weather—basically, anything that isn’t a crash.

Finally, there are Specified Perils, where your policy lists the exact risks (like fire, theft, or windstorm) you’re protected against.

Imagine your car getting stolen; your comprehensive coverage would pick up the tab in most cases. Or, say you accidentally backed into a pole—here, collision coverage should help with the repair costs.

I Got in an Accident in a Borrowed Car – What Now?

If you ever borrow someone else’s car and you aren’t listed as an insured driver on their policy, the owner’s insurance is generally the first to come into play. Of course, depending on its terms, your policy might pitch in later.

If you’re in a car accident with a borrowed car, the car owner’s Third-Party Liability and DCPD are the coverages activated first. Should the damage exceed what they cover or if there’s a specification in their policy, your insurance (especially if you have non-owner coverage) might lend a hand.

However, if you regularly drive that car, the insurer may deny your claim because—simply put—you should have been included on the owner’s policy.

Insurance That Sticks with the Car

Many places, including Nova Scotia, work on the premise that insurance is tied to the car itself. In practice, this means that regardless of who’s driving, the vehicle’s insurance generally covers damages up to its limits. This arrangement intends to provide consistent coverage so that anyone impacted by an accident always finds a safety net to catch and protect them.

When the Driver’s Own Insurance is Used for Payment

Sometimes, the driver’s policy and the owner’s car accident coverage come into play. For instance, if the damages exceed the owner’s plan, the driver’s insurance might cover the extra costs. And, in cases of clear-cut negligence, the driver’s liability may be considered a factor for payment.

Involved in a Crash with a Borrowed Car? Here’s What You Do

Acting quickly is key if caught in an accident while driving a borrowed car. What you do right after the collision can influence the claims process and affect liability. It’s wise to document everything, exchange details with the other party, and report the incident shortly thereafter. Whether you’ve borrowed an auto or are in an accident with an uninsured driver, you must follow this protocol.

Immediate Steps to Take

Regardless of liability for a borrowed vehicle accident, there are steps you should always take:

• Right after the accident, check that everyone’s safe and, if needed, dial emergency services—don’t leave the scene, even if you’re shaken up.
• Exchange essential details with the other driver, such as names, contact information, insurance details, and vehicle information.
• It helps to snap some pictures of the scene and jot down notes about what happened.

When talking to the police or your insurer, stay honest and to the point. Stick strictly to the facts—no guessing or prematurely admitting blame. Be sure to mention whose car it was and explain briefly how you drove it.

You’ll also need solid evidence to support your claim. That means gathering the police report, photos from the scene, any witness comments, and medical records if there were injuries. And don’t forget, proof that you had permission to use the car can also make a difference.

What Happens If the Driver Isn’t Listed on the Policy?

Most insurance rules expect every regular driver to be named on the policy. If the person driving at the time of the accident isn’t on the list, things get thrown off course. In such cases, your insurer will likely dig deeper to determine precisely what happened.

This rundown should give you a general idea of how liability works when accidents occur in a borrowed car scenario. Remember that the specifics can vary, and it pays to be prepared. Sometimes, if you miss including a regular driver on your policy, the outcome could become complicated—coverage might even get denied.

Named Driver(s) vs. Excluded Drivers

Insurance companies tend to split drivers into two groups. One group comprises those whose names appear on the policy – your “named” drivers who enjoy coverage when driving. The other group, the excluded drivers, simply aren’t on the list, so no matter what happens, they won’t be insured under any circumstances.

Who Should Be Listed on Your Insurance Policy?

Simply put, anyone who frequently drives the vehicle—a family member, a roommate, or even a close friend—should be on a car accident policy. Overlooking regular drivers can raise coverage issues when an accident happens, so it pays to be thorough.

A primary driver is the one who practically owns the steering wheel, using the car almost every day. Occasional drivers take charge less frequently but routinely, while incidental drivers only jump in when necessary. Maintaining these roles clearly for your insurer is required to ensure accurate coverage.

If someone takes your car without asking and ends up in a crash, that situation is usually called non-permissive use. Generally speaking, the driver responsible for borrowing the vehicle without permission will be responsible for the damages—but, of course, the exact outcome may depend on local laws and the specific circumstances.

In Nova Scotia, “non-permissive use” refers to driving an auto without the owner’s implied or explicit consent. While insurance usually follows the vehicle, not the driver, non-permissive use can create complications in liability and claims. In these situations, the driver’s insurance may cover damages and injuries. At the same time, the owner’s coverage may cover vehicle damages if the driver is unknown or wasn’t expected to use the vehicle.

Imagine your car gets stolen and then is involved in an accident. Usually, insurance covers the damage. But things can quickly become more complex if a family member or friend takes your car without your permission. Questions about how much permission was granted and the nature of your relationship may come into play.

Medical Coverage After an Accident in a Borrowed Car

If an accident occurs while someone borrows your car, accident benefits (often known as Section B coverage in Nova Scotia) generally handle the medical expenses, rehabilitation costs, and even lost income. This support kicks in regardless of fault, helping cover expenses.

Who Gets Covered Under Accident Benefits (Section B)

In Nova Scotia, Section B benefits extend to anyone injured in a car accident—drivers, passengers, and even pedestrians. These benefits support medical care and recovery needs, regardless of who is to blame.

Legal Risks for Vehicle Owners

Lending your car has its risks. If someone you allowed to borrow it ends up in a serious accident, you could be liable—especially if you knew or should have known that the person wasn’t fit to drive.

Exceeding Policy Limits: When You Might Be Personally Liable

If the costs from an accident extend beyond what your insurance covers, you might have to pay out of pocket. That’s why it’s wise to have insurance coverage that’s substantial enough to handle even the worst-case scenarios.

How a Car Accident Lawyer Can Help

Deciphering insurance for a borrowed car accident in Nova Scotia is complicated. Therefore, a car accident lawyer can be invaluable by explaining your rights, negotiating with the insurer, and representing you in court if things get legally complex.

For additional details and help from seasoned professionals at Preszler Injury Lawyers, contact our office to schedule a consultation now.