renting a car to someone

[defaultuser]

I think you want to have a lien on the title, not have the title in your name. Also, make them carry insurance and all that.

In my experience, trying to save someone from a bad situation nearly always hurts you in the end. If offer someone help it is only in the form of gifts from now on...

This is how I met my X wife. Captain save-a-ho. Red flag red flag

[Fatheroffour]

In my experience, trying to save someone from a bad situation nearly always hurts you in the end.

As the saying goes, no good deed goes unpunished.

[BubbaGumpShrimp]

The best way to protect yourself in a situation like this is to not put yourself in this situation. If you're going to do this regardless...either add the individual to your policy as an operator temporarily (the only way that you can GUARANTEE that they're covered) or make sure that they have coverage while operating any vehicle (including yours).

Someone in this sketchy situation is likely going to be offended if you ask for proof that they: 1. Have insurance, and 2. Proof that they can operate your vehicle under the coverage. If they need a loan to repair a vehicle, they either have no comprehensive insurance (a ******* stupid thing to do if you're broke and operating paycheck to paycheck) or no insurance.Red flag.

Seriously though...if someone has to "borrow" a vehicle from you...it's a safe bet that they aren't insured. As the others said...if this is a woman that you have interest in...run away.

On the loan/repair thing. Bad ******* idea. If you think you get along with this person now...just wait and see how it pans out when they stop paying and expect you to just give them their vehicle back. Red flag man.

Ever hear that "possession is 9/10 of the law?" What are you planning on doing when they have possession of the vehicle and you decide that you're tired of waiting for them to pay you? Are you going to take it back? My bet is no. A "good guy" that would do something like this for someone else is going to let it slide.

Do yourself a favor and let banks do the lending and rental car companies do the vehicle lending.

[Southern.Putter]

Here's something more to consider. Let's assume they get the state minimum/standard amount of insurance coverage and then have a couple of beers, drive the car that's in your name but (supposedly) "covered" by insurance, then get in a wreck with a minivan full of kids. The kids die. Their dad, whose uncle is a partner in a local law firm then proceeds to sue YOU as the OWNER of the vehicle for $3 million in "pain and suffering". Guess what, YOU are on the hook for anything not covered by the insurance.

Don't do it. As others have said, let the car rental companies assume that risk.

[Thermite]

This reminds me of a sign hanging over the counter at a local tire shop. "I have an agreement with the bank. They don't sell tires, and I don't give credit."
Tell them to rent a car from a rental place, and stay out this potential mess. Unless you're perfectly willing to just give this person the money, or a car, free & clear with no hurt feelings/relationships.

[RiseAgainst]

I work in auto claims. I am in Texas but it is generally standard language in any auto policy that if the company can show that you took a fee, rented, sublet etc. your vehicle to anyone, your liability coverage would be denied and you would essentially be uninsured-making you financially responsible for any damages or injuries.

If for some reason the person driving your vehicle carries liability insurance there is a possibility that their carrier may step in to protect their insured, but this isn't likely.

My advice is to not do this. In the 10+ years I have been in this industry I have seen some pretty gnarly things...it's just not worth the risk.

[CCR]

does anyone know how to protect oneself when renting a car to someone?

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There's a person who wants a fairly large loan to repair a vehicle. I figured I might try to help them out and thought I might have them sign the title over to me which I would sign back when the loan was paid. In the mean time, the car would be fixed and they'd be driving it before paying off the loan. (it is not my ex. Just thought some of you guys may know how to cover the liability on this)

This can be safely done. The title is put into their name with you as the first lien holder.
You also have to write up a payment contract with rules and obligations. You can get this online; it has the typical bank language on it, although make sure you understand it as you must explain it to them and have them sign a form saying you presenting the info to them.

Under no circumstances should you leave your name on the title as an owner if thy are driving it.