[greglepore]

The legal concept (at least here in Pa.) is "negligent entrustment"- did you know or have reason to know that the person to whom you lent the car was an incompetent driver (ie a history of tickets, accidents, dui, dangerous behavior behind the wheel etc.).

In almost all states, liability insurance follows the vehicle registration, and you can't register a vehicle that's not titled to you, so they probably can't insure it; however, your insurance covers permissive users, but you should be careful to check to see that there isn't a "regular user" exception. In any event, its unlikely that you can continue to own the car, drop the coverage, and lend it out to them and have them cover it.

(disclaimer-former atty...)