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J.Hazelbaker
J.Hazelbaker, Attorney
Category: Legal
Satisfied Customers: 4385
Experience:  Attorney and small business owner with 10 years experience in the general practice of law.
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CAN I LEASE A CAR FOR SOMEONE ELSE TO USE AND NOT BE LIABLE

Customer Question

CAN I LEASE A CAR FOR SOMEONE ELSE TO USE AND NOT BE LIABLE IF THEY HAVE AN ACCIDENT.
Submitted: 8 years ago.
Category: Legal
Expert:  J.Hazelbaker replied 8 years ago.
It is not a simple process. If you lease the vehicle, you will be primarily responsible to the lessor. For example, if the vehicle is totalled and there remains a balance on the lease, you will ultimately be responsible for the deficiency.

And, any plaintiff's attorney will likely sue anyone with an ownership interest in the vehicle involved in the accident. You can likely get out of the suit, but only after spending time and money to do so. That's what makes the American legal system a bit unfair in such circumstances.

While you can lease it to a third-party and have an indemnity/hold harmless clause included, you might still be in a position of having to sue the party you leased to in order to raise the indeminity issues. While you may escape liability, you still have had to incur the time and expense to realize that protection.

Leasing is doable. Limiting your exposure should the party you lease to default or have an accident (or both) can't be done completely. You will always have a degree of exposure and ultimate liability for the debt. There will always be a bit of risk. Thus, it depends on your risk tolerance and balancing the circumstances (such as how well you know the party you would lease to).

The information is provided for discussion and entertainment purposes only. I believe in helping people and answering their questions and providing information and solutions. To encourage and facilitate this practice, it is understood and agreed by the recipient that by opening, reading, accepting, and viewing this information, no attorney-client relationship has been discussed, agreed to or otherwise established. In legal matters, time is of the essence. As such, you should contact an experienced lawyer right away to protect your legal rights!


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Customer: replied 8 years ago.
THANK YOU, XXXXX CONCERNED WITH THE LIABILITY FOR THE PAYMENTS OR COST OF VEHICLE IF TOTALED. I AM CONCERNED ABOUT BEING SUED IF THERE IS AN ACCIDENT. CAN THE OTHER PARTY CARRY THE INSURANCE ON THE VEHICLE OR DO I OR BOTH OF US HAVE TO CARRY THE AUTO INSURANCE. IS THIS EVEN POSSIBLE BECAUSE OF THE DIFFERENT STATES. AS AN ALTERNATIVE CAN I SIMPLY FINANCE THE VEHICLE IN THEIR NAME AND AS SUCH HAVE THEM CARRY INSURANCE AND ALL LIABILITIES, WHILE I MAINTAIN RESPONSIBILITY FOR THE FINANCE PAYMENTS. OR, DO I NEED TO CARRY AUTO INSURANCE AS WELL.
Expert:  J.Hazelbaker replied 8 years ago.
You need to make sure they carry insurance and have you named as an additional insured. You need to make sure they prove the insurance coverage by sending you the contract with your name as an insured. You can verify the coverage with the carrier and ask to be contacted should it be cancelled.
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Customer: replied 8 years ago.

THANK YOU AND HAVE GREAT DAY
CLARKE
Expert:  J.Hazelbaker replied 8 years ago.
Thank you and you as well.