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It's definitely best not to get involved. It does sound like your niece does have reasons not to trust him, on top of her own trauma from her father, and it would likely be best if she left him, but that would have to be something she'd have to decide on her own.
He's not using your car ever, right? If he is out drinking and driving, it shouldn't be under your insurance.
He's not using your car ever, right? If he is out drinking and driving, it shouldn't be under your insurance.