I'm letting my friend borrow my car, what kind of paperwork must be done?

Question

i'm letting my friend borrow my car for 1 year.

she is going to pay insurance.. but the insurance is under my name, so if an accident happens, the car is still under my name..

is there anything I can do?

Answer 1

YOu are not the only one,I have met this type of  problem before.I have good experience here to solve the problem though.http://car-insurance.bestips.info/car-in...

Answer 2

You may want to rethink what you are doing.  If you lend your car for a year, anything that happens to the car will be your responsibility.  If it happens to be towed and impounded, only the owner, you, can come get it.  If there is any type of accident, it will go against you, not the friend.

If she needs a car for a year, and you have one to spare, sell it to her, put it in her name and let her get her own insurance, even if you sell it to her a $1, and you will be off the hook.  If you want it back at the end of the year, buy it back from her.

Answer 3

>>  I'm letting my friend borrow my car,

That a sure way to end a friendship - and you on the short end of the deal.  If she was to ever get into a big accident, you will get sued alone with her (no matter what the contract says).

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>> she is going to pay insurance.. but the insurance is under my name

That's even worse.  If the insurance rate was to go up, would she be still be responsible EVEN AFTER she return the car and you still pay for a higher rate?

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>> she

Oh now I get it.  "SHE".  Don't do it.

Good luck...

Answer 4

You should cancel the insurance policy, for if your friend drives the vehicle the insurance company won't cover in an accident. Insurance companies in California have rules that anyone that regularly drives the vehicle will NOT be covered in an accident. Two things you can do :

1) Cancel your policy, and have her do her own policy There's insurance carriers that will insure your vehicle with your friend as the named insured despite the car not being under your friend's name.

2) You can add your friend onto your policy, and let the insurance company know that she will be the primary driver.

I wouldn't suggest the latter, for the insurance company doesn't like those type of risks. Have your friend get their own policy. I work out of Central Cali, and if you're interested I can give you a quote. We work with risks like you all tha time. E-mail me if you're interested.