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Helping guy that works for me with a vehicle? Insurance questions.

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    Helping guy that works for me with a vehicle? Insurance questions.

    I own a finish carpentry business and have a guy that does some work for me as a 1099 contractor. He sets his schedule, usually 3 days a week, comes and goes when he needs, and has another job. Just info that he is a legitimate contractor.

    He had a car that was a lease through his family, his dad died this year (as did mine), and in the process of traveling to help his mom move he got in a car accident (he was at fault to my knowledge, no DUI or anything like that though.)

    Insurance paid the car off but he has been riding his bike to get to my shop and I pick him up when I can. Good kid, 21, lives with his girlfriend and I’d like to help him out with a vehicle. I already pay him more than he’s “worth” a lot of the time, so just bumping him up isn’t really an option.

    The guy I rent my shop from has an F-150 he had wanted to sell at one point. I’m considering buying it and letting this kid drive it full time, take it home, personal use, etc. If it was a company owned truck obviously I’d insure it, but the places I have worked for in the past company trucks lived at the shop and were picked up and dropped off every day.

    I’d like him to be able to use it as his own, but have him cover the insurance on it (liability only would be fine with me.) I don’t want to be on the hook for a high $ insurance payment every month, in addition to the risk of a lawsuit, my rates jumping up, etc, if he had another accident.

    I was driving a truck I was buying from a friend of mine (he owned it outright, I was making payments to him) and my insurance dropped me when they found out I wasn’t the “owner” of the vehicle.

    Is there a way to put this guy who works for me on the title as the owner, with me as the lien holder, and then it’s basically never paid off unless he wants to actually buy it? Or lease it to him for something like $1/month?

    The other thing I’ve considered is just giving him a more generous Christmas bonus than I typically would with the suggestion that he spend it on a vehicle, or just buy something and give it to him. Unfortunately we all know what the used market is like these days and there aren’t a lot of $2,000 vehicles that run and drive out there.

    This F-150 isn’t a ton of money, but it’s more than I’d be ok with just giving away if he decides he’s going to move out of town in a couple months.

    Thanks for any input from those who have dealt with something similar.
    Last edited by gatorgrizz27; 11-16-2021, 08:43 PM.

    #2
    Been through this twice and was screwed both times. If you want to give him the truck just give it to him. Be sure and accompany him to the DMV to move it into his name.

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      #3
      My neighbor did something similar to what your thinking about. He bought a truck but had it put in his workers name and he had pay him every two weeks when he got paid and pay his own insurance coverage. My neighbor didn't want the truck in his name in case of an accident where he could be sued or held responsible.

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        #4
        I believe you can get vehicle insurance and not own a vehicle.... My mother is 82 and owns a vehicle and lets a 65 year old lady drive it quite a bit. I questioned her about this and I think the lady got some type of liability that covers her... of course she could have lied to me!!

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          #5
          Sr 22?

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            #6
            If you put as a company truck then your name is on it and the sorry insurance rates sky rocket for commercial use. I insure 4 company trucks. The rates suck.

            I am not sure how you can put in his name and you still show ownership. If he is using it for work and personal use he should be able to get regular insurance.


            Sent from my iPhone using Tapatalk

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              #7
              Originally posted by skinsfan View Post
              Been through this twice and was screwed both times. If you want to give him the truck just give it to him. Be sure and accompany him to the DMV to move it into his name.
              ^^^^^^^^^^yep
              He’s 21, he has the potential to do something stupid and you don’t want that to come back and bite you.

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                #8
                Thanks for the replies so far.

                Just to be clear, I’m not talking about him making payments to me and buying the truck. He’s not that interested in this vehicle long term, as he knows it will require more maintenance with its age.

                I’d like to just help him have something to drive for the cost of insurance and let him keep saving for something else. I’d assume a lien that he never makes a payment on, or a $1/month lease would be ways to do that, but it doesn’t seem like you just fill out a form and it’s good to go. That should also alleviate any liability, besides losing the value of the vehicle if he doesn’t have full coverage insurance.

                I don’t really want to be in a position where I just give it to him and then he moves away in a couple months. He said he plans to stick around and keep working for at least a year, but we know things can change.

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                  #9
                  There are insurance companies that will do that. Progressive allows me to write them.

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                    #10
                    Nice gesture

                    “No good deed goes unpunished”

                    Having said that it’s a nice thing you’re doing. Give it to him with the understanding you get it back if he decides not to keep it or fix it. Just remember the taxes and fees you will have to pay when you transfer the title back and forth

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                      #11
                      It would probably be cheaper to just gift him it and write it off.

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