Renting out your personal vehicle

So someone wants to rent my truck from me for some medium-term duration until she gets enough money to buy her own vehicle. She needs it for her own work, I could use the money, and I certainly don't need the truck.

Does anyone know the legalities and liabilities surrounding this? Of course I will have a contract with her stipulating that she's responsible for damages and tolls and unsafe driving charges and everything else. Is there anything else I need to know from a purely factual, legal perspective?

If we're talking a PERSONAL vehicle here, if she gets in an accident and/or any claim is made, it will show up on your insurance record. You will be required to maintain insurance on the truck while it's in her possession.

If it's more then just "temporary" you might have to get her added to your insurance policy. It may not affect your rates at all, if she is deemed less risk than you are.

-Jamie M.

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Originally Posted by toysareforboys

If we're talking a PERSONAL vehicle here, if she gets in an accident and/or any claim is made, it will show up on your insurance record. You will be required to maintain insurance on the truck while it's in her possession.

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Not to mention if they find out you were renting it out they could not cover your claim due to insurance fraud if you aren't going to mention it to them.

Get her to put the insurance on it, then if something where to happen it would not effect you.

It's tricky. checkout

http://en.wikipedia.org/wiki/Peer-to-peer_car_rental

There was a case of a woman that rented her car out and the driver killed people (and himself) and she's being sued. I couldn't find the article but it was online from NYTimes this year.

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Originally Posted by RonnieRev

Get her to put the insurance on it, then if something where to happen it would not effect you.

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is there an easy way of doing this?

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Originally Posted by RonnieRev

Get her to put the insurance on it, then if something where to happen it would not effect you.

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I do not believe that you can insure a vehicle that you do not hold the title to. :scratch:
Also is she using it to do work or to get to work as the insurance coverage needs to change from personal to business use if used for business purposes.

I would just pass at the offer even though it sounded like a good idea at first.

Phone your insurance broker and ask.

Ok, that's actually a good idea, phoning my insurance people and asking them if I can lend it to a friend for 2-4 weeks (that's the duration, I've discovered).

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Originally Posted by viper84737

Ok, that's actually a good idea, phoning my insurance people and asking them if I can lend it to a friend for 2-4 weeks (that's the duration, I've discovered).

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In your first post you say RENT. Two different animals. They will be treated differently. Make the situation 100% clear to the broker. Adjusters aren't fools. They ask the right questions and add up misrepresentation pretty fast.

If someone loans me something I feel that I am responsible for the maintenence of the object because of the good will of the owner. If I rent something from a business I assume they pay for maintenence.

In this business is there a possibility of your friend letting someone else drive the vehicle? An idiot maybe? Could the idiot then do a favour for a friend?
If she's not using the truck on weekends does she loan it to a friend that's moving.

Does the person know anything about loading? Ever seen a half ton pickup with the box full of sand? I have. It was at the side of the road with a broken axle.

If she can't afford to buy her own vehicle can she afford to pay to fix yours?

Is she prepared to pay the insurance bump up for a commercial endeavor?

She could probably rent a vehicle from a legit outfit or Uhaul cheaper than you could go through due diligence on protecting yourself from massive costs, lawsuits etc. Even vehicle warrantees are different for commercially used vehicles.

Good luck. You need it.

PS Re the contract making her responsible for damages etc. How much are you paying a lawyer to write up a contract that would stand up in court? Mine wanted 10 grand to research a subject so his contract would cover all possibilities.

There's another possible issue here, in addition to the stated ones regarding insurance. You say that this vehicle will be used for business. The insurance rates for business vehicles and passenger vehicles aren't the same, because the insurer's exposure isn't the same.

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Originally Posted by viper84737

So someone wants to rent my truck from me for some medium-term duration until she gets enough money to buy her own vehicle. She needs it for her own work, I could use the money, and I certainly don't need the truck.

Does anyone know the legalities and liabilities surrounding this? Of course I will have a contract with her stipulating that she's responsible for damages and tolls and unsafe driving charges and everything else. Is there anything else I need to know from a purely factual, legal perspective?

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The only thing I can suggest is to post your question in the Insurance section... you may get more responses that way. Cheers

If you are renting your vehicle to someone else, the insurance needs are an entirely different ball of wax. You mention it's a truck. What would the truck be used for? Would they be moving things or hauling things? Would there be tools or other valuable kept in the truck? Would the truck go to work sites? What other kind of use would the truck be used for? Would the operator have their own insurance?

The risk exposure changes a lot. It's best to run it by a broker to determine the best way handle things.

I lent my vehicle to a friend who turned in front of another vehicle. Friend is 100% responsible for accident, I am 100% liable as I hold the liability policy on the vehicle.

Yes sir - I've been named in a lawsuit (going after $1,000,000 in my policy) even though I wasn't in the area, let alone the vehicle.

Beware

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Originally Posted by viper84737

So someone wants to rent my truck from me for some medium-term duration until she gets enough money to buy her own vehicle. She needs it for her own work, I could use the money, and I certainly don't need the truck.

Does anyone know the legalities and liabilities surrounding this? Of course I will have a contract with her stipulating that she's responsible for damages and tolls and unsafe driving charges and everything else. Is there anything else I need to know from a purely factual, legal perspective?

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Your Ontario Insurance Policy OAP1 which covers the personal motorcycles specifically excludes this under section 1.8.3 "Rented or Leased Automobiles". "Except for certain Accident Benefits coverage, there is "no coverage under this policy if the automobile is rented or leased by you to another". (Emphasis is mine).

I was a manager for a large Ontario Insurer and was in the industry for 10 years. I am pretty sure that you will have to get a commercial auto insurance policy which would involve a whole bunch of other stuff.

And please remember, the insurance company will interview the other person (rider) in the event of an accident (especially a large accident that may involve a large payout). She will be up front and disclose this which invalidates your policy. She cannot insure a vehicle that she does not own so there would be no insurance. In the event of an accident, you as the owner (and the rider) would be sued by the injured party. Can you imagine if she were to hit a kid on the street and hurt them significantly?

Hope for the best, but plan for the best. Good idea for getting advice from your insurance broker, but I would recommend if the agree that you are covered or that they will get you coverage, that you provide them in writing the circumstances and they provide their advice in writing as well.

Just my 2 cents.