When it comes to lending your car out to someone else, it’s always a good idea to have a loaner car agreement in place. This simple document can help outline responsibilities for both parties and protect you in the event of an accident or other issues.
Here are some key elements to include in your loaner car agreement:
1. Names and contact information of both parties: Include the full legal names and addresses of both the car owner and the person borrowing the car.
2. Vehicle information: List the make, model, year, and license plate number of the car being borrowed. This will help ensure that the borrower is responsible for any damage or fees incurred while using the vehicle.
3. Duration of loan: Specify the exact dates and times the car will be borrowed and returned. This includes the exact time the borrower needs to return the car, to avoid any late-fee charges.
4. Permission to drive: Clearly state that the borrower is authorized to drive the car and that the car owner’s insurance policy covers the car during the loan period.
5. Insurance coverage: It’s important to specify that the borrower is responsible for any damage caused while driving the car. This can also include a clause that the borrower must provide proof of their own insurance coverage.
6. Liability and indemnification: Clarify that the borrower is liable for any damages or claims related to the use of the car during the loan period. This includes any traffic violations, accidents, or other damages.
7. Condition of the car: Document the current condition of the car, including any preexisting damage, and have both parties sign off on it. This will help you determine if any new damage occurs during the loan period.
By creating a loaner car agreement, you can help ensure a smooth and safe borrowing experience for both parties. This simple document can provide an important layer of protection and help avoid any misunderstandings or disputes. Be sure to review your agreement carefully and seek input from a legal professional if necessary to ensure that all necessary elements are included.