Full question:
In Missouri regarding auto lease, if lessee is contractually required to keep continuous liability and physical damage and insurance is cancelled and wreck happens is lessor at all responsible if leased vehicle is titled in lessor's name? Also is there a Missouri statute I could go to for lots of info?
- Category: Automobiles
- Subcategory: Lease
- Date:
- State: Missouri
Answer:
In limited cases, the lessor of an automobile can be held vicariously liable for damages caused when a lessee fails to maintain the required liability insurance. An injured party will bring an action for damages against the driver of the vehicle and its owner. If the owner and the driver had a contractual agreement (lease) that said the driver was to maintain insurance to cover any losses and the driver breached that agreement, the owner (lessor) would have a contractual claim against the driver for any losses it was forced to pay for the lessee's negligence.
Missouri law requires that all motor vehicle owners maintain some type of motor vehicle liability insurance coverage. Motor vehicle owners are required to show proof of insurance when registering a vehicle or renewing their license plates. Owners must also keep proof of insurance in their vehicle(s). If a law enforcement officer asks for proof of insurance and the driver cannot show it, the officer may issue both the driver and the owner a ticket.
The statutes define "owner" as "a person who holds the legal title to a motor vehicle; or in the event a motor vehicle is the subject of an agreement for the conditional sale or lease thereof with the right of purchase upon performance of the conditions stated in the agreement and with an immediate right of possession vested in the conditional vendee or lessee, or in the event a mortgagor of a motor vehicle is entitled to possession thereof, then such conditional vendee or lessee or mortgagor".
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.
