Reasons Not to Lend Out Your Vehicle

When you loan your car out you are assuming a large amount of liability and risk.  If you loan your car out to a person and that person doesn’t have a valid drivers license and gets into an accident you can ultimately be responsible.  Ask yourself the question” is this person covered by my insurance”?  Think about the worst case scenario.  The person driving your vehicle is in a bad accident  somebody is hurt badly or killed, there is extensive damage to their car and yours, then your insurance denies the claim and you have to bear the burden of expenses personally.

The key word is a VALID drivers license,  even though the person may have a physical drivers license it doesn’t mean that it is valid.  Their drivers license may have been revoked for a variety of reasons;  back child support, back taxes, too many tickets and much more.  You ask, how can this happen?  What if the individual failed to go to court and didn’t turn his license in.

Here is another scenario that could happen, the person doesn’t have a driver’s license or has a revoked driver’s license and is pulled over by the police.  Your vehicle may be impounded and you have the expense of the tow and storage.

In Denver if the same scenario happened you will have to pay for the tow and storage but you will have to post a $2500.00 bond which they will keep for a year and return to you if there are not other violations regarding and unlicensed driver.

If this would happen and there is a lienholder, the lienholder may get the vehicle out of the impound without paying the bond but, they cannot let you have the car back and you will still be responsible for any deficiency balance.

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