Is it possible to transfer insurance liability for a car to someone else without transferring the title?
I hаνе аn older truck thаt I аm nοt using, аnd I wouldn’t mind lending іt tο a relative fοr a whіlе.
Hοwеνеr, I don’t want tο transfer thе title. Bυt I аlѕο don’t want tο keep thе thing οn mу insurance іf I аm nοt driving іt. I don’t want tο bе responsible fοr potential accidents caused bу thе relative.
Iѕ thеrе a way tο set thіѕ up? Cаn I transfer insurance responsibility whіlе still retaining thе title? Hοw dο rental companies dο thіѕ?
In a crash, the owner of the car is liable as well as the driver. If you still hold title, you need insurance. You might get your relative to reimburse you for the additional cost of keeping the vehicle on your insurance. Your insurance company can tell you to the dollar how much this is (it is on the annual disclosure you get from them, or you can call them).
If the car will be kept at your relative’s place (the insurance companies call this garaging, even if it isn’t in a garage), you need to inform your insurance company. It might change the cost slightly because your relative lives in a higher risk area, but it you don’t do tell them and there is a serious accident, the insurance company will look in to the accident, especially if you were not driving and it is not near your home, and if they find that it was being kept at your relative’s place, they may deny the claim and you may be charged with insurance fraud.
Rental car companies handle this the same way you should: by having insurance. The collision damage waiver that you may have heard of relates to damage to the rented car. Either way, you are still covered for damage to other cars/people/objects by their insurance.
Put the truck on your insurance, tell your insurance company that it will be garaged with your relative and driven by your relative. They will tell you how much this will cost, and have your relative cut you a check. When you get the truck back, call the insurance company again.
If your relative causes an accident that causes half a million dollars of damage (intensive care in a hospital can cost more than 10 grand a day, so it adds up fast), you’ll be glad you have coverage.
No.
Short-term rental companies, such as Hertz, Avis, Dollar, Thrifty, Enterprise, etc., do have insurance responsibility, and routinely get sued over accidents caused by renters.
Leasing companies that allow you to lease a car for a period of several years take advantage of special laws that apply only to them and not to loans between relatives.
You cannot transfer liability but your relative can simply buy insurance for it on his own. To do so He must have an “insurable interest” in the truck but driving it daily and having it in his possession qualifies.
What you are doing though is risky. Even if he buys insurance for it and has a claim, if his limits are exceeded, they are going to come knocking on your door.
My recommendation: Either sell him the truck or don’t lend it to him