In Ontario, your car insurance generally covers your car, not the person who’s driving it. So, anyone with a valid licence who drives your car is technically covered by your auto insurance policy. For example, if you lend your car to your neighbour and they have an at-fault accident, your insurance will cover the losses. However, the cost of your premiums may also increase. If your neighbour has their own insurance policy that covers this type of loss, their insurance would be used – instead of yours – to cover the cost of the losses.