Tuesday, 11 February 2014

My acquaintance has a bussiness for which I am allowing him to use my personal vehicle, should a contract be signed allowing that I let him?

Question

My acquaintance has a bussiness for which I am allowing him to use my personal vehicle, should a contract be signed allowing that I let him?



Answer

Yes, and you need to make sure that insurance is carried and that the insurer knows that the vehicle is being used for business purposes. It's quite important to be certain that the vehicle is insured and that the insurer is aware both (1) of the user's identity, and (2) that it is being used for a business.



Answer

Mr. Whipple is correct. If you do not notify your insurance company that the vehicle will be loaned for commercial use and arrange for any appropriate changes in your policy and coverage, you may find yourself without insurance coverage at all, even in an accident unrelated to the commercial use.



Answer

I hope you realize that you will be personally liable for any damage or injury your car is involved in. You'd better have really high policy coverage. Talk to your insurance provider.



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