Recommendations for Leasing an RV

[Dakell12]

Hello busfolk,
   I am trying to lease my motor home to some friends, but my current insurance will not allow me to do so. I have received advice that state farm will allow me to do it, but does anyone know of any other insurance companies that offer this? Thanks for your time!

[Nick Badame Refrig/ACC]

Hi Dakell12,

Welcome!

How about having your friend carry the insurance?  Your friend can provide you with proof by having the policy mailed to your address.

Good Luck
Nick-

[TexasBorderDude]

And have the policy endorsed with you as loss payee.

dg

[Cary and Don]

You will want to make sure their liability coverage protects you too, and for the same your current limits or higher.

Don and Cary
GMC4107
Neoplan AN340

[Sean]

You should be aware that leasing motor vehicles is a highly regulated business in most states.  Insurance for the vehicle is only one of the many legal issues you may face, even when the lessee is a friend.

You should consult with an attorney in your state who is familiar with the motor vehicle leasing, titling, and licensing laws of that state before you proceed, IMO.

If your friend, for example, knowingly or unknowingly commits a crime while in the vehicle, such as he gives a ride to another friend who happens to have a joint in his pocket, the vehicle can be seized administratively, and you would have no recourse to recover it -- you'd have to collect the value of the vehicle from your friend, if you could.  (Insurance is irrelevant, since no insurance carrier will pay a claim when the vehicle has been seized due to commission of a crime -- all policies exclude this explicitly.)

If your friend even ends up with unpaid parking tickets, you could be ultimately responsible for them.

Lastly, if any mechanical or other defect of the vehicle ends up causing harm or financial loss to your friend, she can hold you legally and financially responsible under some circumstances.  Without being a registered financial institution or vehicle dealer licensed by your state to lease motor vehicles, the protections of state law usually reserved for lessors will not apply (and you may face criminal charges for failing to comply with compulsory financial obligations of vehicle lessors, often including posting bonds in the tens or hundreds of thousands of dollars with the state).

Just some things to think about.  There's a reason your insurance company does not want to touch this.

-Sean
http://ourodyssey.blogspot.com

[bobofthenorth]

Sean has done a good job of pointing out what the risks are.  One easy way to clearly transfer the liability to your friend is to write up a bill of sale including a conditional sales contract showing the rental payment as a down payment.  Then your friend will be able to title the unit in his name and he will own the liability.  If something happens to the unit he still owes you the money.  You can make a loss payable insurance provision a condition of the sales contract.  Note: I'm not a lawyer and I don't even play one on the internet but I have used this method to lease vehicles for a short term period.  This system only works if you are in a jurisdiction where this transaction will not trigger sales tax on the value of the unit.

[Len Silva]

While we are on the subject..... I'm considering a shared ownership arrangement for my motor home. I have two people interested, still looking for a third.
I know that we would have to form a legal entity of some type but I'm not really knowledgeable about the pitfalls.

I know it's done all the time with airplanes and boats but I'm not sure what's involved.

Len