How should I go about renting my secondary vehicle to a friend?

Question

I was wondering if anyone had some sort of form I should use to cover myself. I know he has to get his own insurance as well as the insurance I have on the vehicle. Like i said it is my secondary vehicle so if it is in an accident I could care less.. However, If it does break from abuse I would like him to pay for it. Regular wear and tear I'm not worried about. Please let me know if you have some idea's how I should go about this.. It would help him out a lot. Additionally, a little extra money for me would be great..

Answer 1

Sell him the vehicle, Let me tell you why. Even if he gets his car insured by him and you have your own. If he hits someone or has an accident, and they sewed for tons of money and after his insurance pays what they are suppose to they could go to you for being responsible for whatever is left.. You own the vehicle, so you are responsible for the vehicle and who drives it. Sell the guy the car, have him make payments to you. Thats the best way. If he's as good as a friend as you think he is, he'll pay it.

Answer 2

If you "rent" him the car, you cannot claim he stole it. Even if he does not make the payment. You gave him permission to use it and the keys. Now, I know you are an upstanding and honest person so you will be claiming this extra money on your taxes, right? What if he files the rent money (and it is legal) and you don't claim the income? You are opening a big can of worms by doing this.

Answer 3

There could be a huge insurance problem.  He can't insure it because it is not in his name.  You will have to have it on a policy in your name but likely your personal insurance policy will not cover it.  The only thing you can do is call your own insurance company & see what they say.

Also, since you are the owner of the vehicle, YOU are just as liable as he is if he has a major accident.  You are putting all of your assets on the line.  No waiver that you can sign will take this away.  It won't hold up in court.

Personally, I wouldn't do it in a million years.

Answer 4

no idea ha ha ha ha !!!!!!