Legal Question in Insurance Law in California

Car Insurance Question

My sister-in-law decided that she was going to lease a new car for a niece to use. She pressured my husband to get the lease for her. Another sister-in-law is vouching that if anything should happen to the car that she will take care of it so I am not too worried as far as the cost of the car. However, now I am being told that even the insurance has to be under my husband's name as it is a lease. Would a claim against this insurance affect my insurance rates even if I have objected to this whole transaction? What about traffic violation tickets that the niece might incur?

Asked on 7/12/09, 2:43 pm

1 Answer from Attorneys

Jeffrey Zinder Zinder & Koch

Re: Car Insurance Question

Each insurance company as well as leasing companies have their own rules as to who must be the named policyholder/insured. The potential affect on your future policy premiums is a real concern if there are any claims associated with the leased car for its damage or any damages caused by its driver. You should direct the questions on potential affect on rate to your insurance broker/aqent. Tickets associated with driving my not be your problem, but parking tickets would be chargable against the legal lessor, your husband.

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Answered on 7/13/09, 5:21 pm

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