lease car to family member - liability insurance?
- fundtalker123
- Posts: 901
- Joined: Tue Feb 27, 2007 3:18 am
lease car to family member - liability insurance?
I own two cars in my name. One is often driven by a family member. My understanding is that if he causes an accident I can be sued as the car is registered in my name, is that right? I have a lot of assets and he has zero assets. My insurance company won't allow him to be covered under my umbrella insurance. My thought is maybe I can lease the car to him, register it in his name, and he can get his own insurance. Does that make sense? If so, how would I go about leasing the car to him? Or is there another solution to this problem?
Re: lease car to family member - liability insurance?
Why not sell it to him or give it to him?
Maybe leasing it to him will relieve you of any potential liability or maybe it won't, I don't know. Since you have assets (and umbrella insurance) and he doesn't, it just seems like you would be an attractive target if he were to be in a bad accident.
Having him register it in his own name and get his own insurance does seem like the smart move, but, for myself, I would feel safer having no legal tie to the car at all.
Maybe leasing it to him will relieve you of any potential liability or maybe it won't, I don't know. Since you have assets (and umbrella insurance) and he doesn't, it just seems like you would be an attractive target if he were to be in a bad accident.
Having him register it in his own name and get his own insurance does seem like the smart move, but, for myself, I would feel safer having no legal tie to the car at all.