So I have an extra car, a 1993 Grand Cherokee, Its in my name, and I have a friend who desperatly needs a car. ASAP. I do not use this car but a few times a month, I don't mind lending it to him till he can get back on his feet. He will probably use it 4-5 months. It is not my main car, and I pretty much get no use out of it, it would help him ALOT more than it is giving me. He is going through some rough times, and I wanna help out. However, my mom has said I can be held liable if he gets in a wreck since it is MY car and the insurance is in my name. My question is.....is it possible for my friend to pay for the insurance, even though the car is in my name......and I won't be liable if he has a wreck? Bascially, who his at fault in a wreck, and who can be sued, the driver, or the owner of the vehicle? Can someone pay insurance and be held accountable for any damages on a car they don not own. Sorry if this is stupid, I just want to cover my ass...

.

[Edited on March 15, 2007 at 10:56 PM. Reason : m]

3/15/2007 10:53:52 PM

This was on one of the daytime court things yesterday and depending on the state both can be held liable! Call your insurance company and ask!

3/15/2007 10:55:34 PM

You might be able to add him onto your insurance for that car. I don't really know how that works on cars, or if it depends on the company, but my husband added his friend to his motorcycle policy so his friend could use the bike while my husband is gone. It wasn't much extra at all, and he'll be able to just take him off when he comes back.

But I definitely wouldn't just let him drive your car without being on the insurance in some way.

3/15/2007 10:59:20 PM

Thanks, thats^ good to know.

3/15/2007 11:01:29 PM

I'd ask him to get his own insurance policy ... maybe you can write a "lease" for some piddly amount like $1/month so he can get insurance without direct ownership?

3/15/2007 11:27:02 PM

Agreed. Just call the insurance and have him added.

Of course, if he turns out to be uninsurable (prior accidents) then adding him might not be an option. If that is the case then there would be nothing you can do. Definitely do not loan him the car anyway, as that would be insurance fraud (I have no idea what the punishment is).

Now, even if he is on the insurance, if he manages to incure liability far in excess of the insurance (imagine a school bus) then the victims can either sue the driver directly (you wish) or whoever happens to be the title holder of the vehicle for whatever exceeds the insurance. For example, mine caps out at $50k, so the parents of the dead brats would divy up the $50k from the insurance company and then sue you for whatever remains of the $200k of pain and suffering, or $150k. Afterwards, the judge will berate you for loaning a stranger your car. Now, it would be this point where you sue your friend for the $150k as it is he that is ultimately liable for the accident.

Of course, as your friend probably doesn't have $150k, and neither do you, the victims get to walk home with everything you own.

But this is rediculously unlikely. I wouldn't let it phase me, just get him on the insurance and be done with it. But if you are extremely risk adverse then you could sign the tittle over to him temporarily, or something like that.

3/15/2007 11:30:11 PM

Yup. Even adding him to your insurance policy, you can still get in trouble with excess liability & he can increase your insurance. Why don't you just transfer the title to your friend? It sounds like you don't really care that much about the car itself. That's really the only way to be safe. He can always just transfer the car back whenever it's not needed.

3/16/2007 12:09:28 AM

^
Good idea in theory ... but rough financial times can cause people to change. Not saying the person will run off with the car, but well, they might be inclined to sell/trade/etc. and "promise" to make up for it.

Quote :

"I'd ask him to get his own insurance policy "

Agreed. Should be able to take out a small/basic plan for minimal of cost, assume a good past driving record. In theory (and again, check for specifics), it would work a lot like one family member owning the vehicle, and another insuring it.

Also, on a side note, a debt management / credit counseling program can be a significant help if the circumstances can be met for it. I.e. If you are only taking in 500 a month, but paying out 1000, they won't be able to do THAT much for you. But, if you are taking in 1000 a month, and paying out 1000, they can probably reduce that 1000 to 900 so you have a bit more income to work with. (If you do go this route, find one that is nonprofit ... too many act like loan sharks).

[Edited on March 16, 2007 at 3:52 AM. Reason : .]

3/16/2007 3:52:24 AM

You are liable. Whoever the car's name in is liable. humandrive was driving me to class in MY car and totaled it, the guy we hit told the cop he was driving and not me, and he got off totally scott free, no ticket or anything. I, on the other hand, now pay out the ass for car insurance.

3/16/2007 6:41:06 AM

the rule of insurance and liability is Car...driver...car...driver (the second car/driver only works if you were a passenger).

3/16/2007 6:44:41 AM

^i don't think i get it

3/16/2007 7:14:16 AM

seriously?

oh and strike the passenger thing...i forgot UIM coverage.

[Edited on March 16, 2007 at 7:52 AM. Reason : ]

3/16/2007 7:52:03 AM

not sure where this fits in, but I know someone who inherited a car, and the lawyers and the cops said that it's ok to drive it b/c her insurance would cover any accidents.....probably different since there was a death involved tho.

and this:

Quote :

"What happens when I loan my car to someone? Is that person covered by my policy? Am I still covered? Yes. Liability and coverage for physical damage (i.e., comprehensive and collision) always follow your car. So, if a friend borrows your car and has an accident, you're still protected against the cost of damages or injuries. Plus, if the driver of your car is insured, his/her policy will also be available to cover the cost of damages and injuries. The same rules apply when you borrow someone else's vehicle -- your own insurance follows you no matter whose car you are driving. But the vehicle owner's policy is the key coverage if you have an accident "

not state specific tho....looks like it can go either way.

3/16/2007 8:52:48 AM

My great gandparents got in an accident

They were in my parents car (parents wernt in it), and my uncle was driving.

They sued my parents and my uncle and got money from both their insurance companies.

3/16/2007 8:54:28 AM

Quote :

"Of course, as your friend probably doesn't have $150k, and neither do you, the victims get to walk home with everything you own. not shit and you get your first bankruptcy"

thats the good part about it being in your name and not your parents, when they do their legwork and find out you are a poor student they probably wont come after you for more than what they can get from the insurance company because they know its a waste of time and money.

3/16/2007 9:03:55 AM

Quote :

"My great gandparents got in an accident They were in my parents car (parents wernt in it), and my uncle was driving. They sued my parents and my uncle and got money from both their insurance companies."

fucking cut throat family, man.

3/16/2007 9:10:38 AM

Quote :

"My great gandparents got in an accident They were in my parents car (parents wernt in it), and my uncle was driving. They sued my parents and my uncle and got money from both their insurance companies."

fucking cunts

i hope that they died horribly

3/16/2007 9:45:06 AM

How often will he drive it? If he drives it more than a few times a week, your insurance will not cover his accident and his insurance would most likely not cover the accident as well, unless a third party is injuried. You will be out the car and personally responsible for any damages that result. You also have like 60 days to add a new car to your policy, or else it will not be covered. The rationale is that its not fair to make the insurance company pay for a car/driver that they did not receive premiums from.

Typically, a person has insurance for their car and for them driving cars they do not own. Different policies have different restrictions/clauses about which insurance company pays first and which picks up the remainder of the property damage. These clauses are read side by side and interpreted a certain way in NC. It depends on the policy. They will also prorate the damage between the companies.

As for the grandparents suing the sons, I would hope that their health insurance refused to pick up the bills or they had substantial amount left over after insurance. Its one thing to sue if they were really hurt. I really hope that was the case with your family.

You can transfer title, but you can't guarantee that he will transfer it back.



[Edited on March 16, 2007 at 3:02 PM. Reason : k]

3/16/2007 2:59:02 PM

Ehh,

They were hurt in the accident, so they had to sue to pay for medical bills, not just to get money. My point is both insurance companies (the owner my parents) and the driver (my uncle) paid some of the medical claim.

3/17/2007 12:44:44 AM

Quote :

"Now, even if he is on the insurance, if he manages to incure liability far in excess of the insurance (imagine a school bus) then the victims can either sue the driver directly (you wish) or whoever happens to be the title holder of the vehicle for whatever exceeds the insurance. For example, mine caps out at $50k, so the parents of the dead brats would divy up the $50k from the insurance company and then sue you for whatever remains of the $200k of pain and suffering, or $150k"

wrong, at least in nc. the insurance company and the insured are only liable for what the policy dictates. there is no sueing for extra, no matter what your expenses are. you can only sue the insurance company if they refuse the pay the limits of the policy. you can only sue for that limit. that's why it is SO important to carry as much uninsured/underinsured coverage as you can.

3/17/2007 11:37:51 AM

Don't be an idiot. If you want to let him drive it, let him get the title in your name.

^ and he said sue the person holding the title, not the insurance company. Since when can't you sue someone for pain/suffering/etc., etc.?

Quote :

"the insurance company and the insured are only liable for what the policy dictates."

makes no sense. if that were the case i'd take out as little insurance as possible and go around running into people without fear of any type of civil action. serve a little jail time and never have to pay anyone a dime? k.

[Edited on March 17, 2007 at 1:19 PM. Reason : ]

3/17/2007 1:14:43 PM

You realize he is not going to renew plates, inspection, insurance, or any repairs/maintenance on it and you are gonna have to clear up that shit when you get it back right????

Tell him to just buy a $500 beater off craigslist.

I am all for helping a friend out when they need it, but generally these kinds of favors bite you in the ass.

3/17/2007 3:52:09 PM

^^i'm not going to argue about it, feel free to check the laws. i'm going through this exact thing right now, with a lawyer. there is no sueing for anything over the policy limits, at least in nc.

you can sue the insurance company for lost wages, exspenses, pain/suffering, etc. but the maximum they have to pay out is whatever the policy is. the insured person is protected. now, if your insurance company gets involved and has to help compensate you through uninsured/underinsured coverage, they have the right to go after the individual to recover anything they pay out.

[Edited on March 17, 2007 at 7:02 PM. Reason : .]

3/17/2007 6:55:13 PM

he can take out insurance on anything he wants. but the owner of a car has to have insurance on a car to maintain a legal registration. if i were you, i would have him sign a contract and just "sell" him the car. this way the title, registration, and insurance will be in his name so if anything happens, the shit can't come back to you. then when he's done with the car, he can "sell" it back to you. but you must have him sign a contract so shit will be legal in court. i have a feeling at the end of this situation, you'll find out how much of a friend he's not and it'll end up in court.

3/17/2007 8:07:58 PM

i believe you could probably put a lien on the title if you're worried about him taking the car and selling it.

3/17/2007 9:30:50 PM