Legal Question in Personal Injury in California

I am leasing my car to a friend for 5 1/2 years. The car is financed under my name (my friend has bad credit) and the friend has 50/100/50 full insurance coverage with comprehensive

My question. If she gets involved in big accident that won't be covered by her insurance (not enough coverage) is it possible that I will end up being liable for the remaining costs?

Thank you, Anton


Asked on 1/18/16, 3:55 pm

2 Answers from Attorneys

Presumably title and financing are in the same name, since few lenders will finance if the borrower's name is not on the title. Assuming that is the case, yes, you could be on the hook for any excess liability over policy limits.

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Answered on 1/18/16, 4:19 pm
Armen Tashjian Law Offices of Armen M. Tashjian

Pursuant to CVC 17151 your liability will be capped at $15/30K provided you are not found to be negligent in trusting your vehicle to be driven by someone else. As for you leasing the car to your friend, I think most dealers / lenders will not be okay with that and I'm sure they have language in the leasing agreement that specifically prohibits that.

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Answered on 1/18/16, 7:33 pm


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