Because car insurance in Canada and the United States generally follows the vehicle rather than the individual driver, if you lend your car to someone with your explicit permission and they get into an accident in Canada, your personal auto insurance policy acts as the primary coverage for vehicle repairs and third-party liabilities. While this permissive use protects the driver, the resulting insurance claim is filed against your policy record. Consequently, you will likely experience increased premium rates at your next policy renewal, and the driver may also face impacts on their personal driving history abstract.
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