by tony maturo » Thu Jan 31, 2008 04:33 pm
i recently cosigned for a vehicle for my son, who is 23. i am actually listed on the title and registration as a co-borrower, or co-buyer. My question is, if he insures the vhicle in his name, what is the extent of my liability if he were involved in an accident, could I be sued for instance if he's in an accident and is found liable for more than his minimum liabilty coverage?
Posted: Thu Jan 31, 2008 09:43 pm Post Subject:
Depends on the state where the accident happens. In some states the owner is held liable, in other states only the driver can be (unless there is negligent entrustment).
Posted: Fri Feb 01, 2008 06:16 am Post Subject:
My question is, if he insures the vhicle in his name, what is the extent of my liability if he were involved in an accident,
None, as the co-borrower you are only responsible to the lien holder. If under any situation his vehicle totaled, then you may require to pay the outstanding amount to the lien holder if necessary. His insurance company will take care of the liability issue.
However, it would be wise to flip through the state insurance guidelines pages. Thanks.
Posted: Fri Feb 01, 2008 06:27 am Post Subject:
You can ask your son to maintain a liability limit above the state minimum requirement. This will eliminate the question of being sued for less coverage.
Cheers!!
LadyBird :D
Posted: Fri Feb 01, 2008 10:06 am Post Subject:
I would have to agree, co signing is only making a promise to the leinholder that if your son does not make the payments that you will. I am curious though about your name being on the title, won't the insurance company want you on the policy? Will you drive the vehicle too? Does your son live with you? This all may make a difference too. If he lives with you and is in an accident above limits, ie: personal injury, will your household insurances kick in? Can some one address this please.
The reason I asked this is my mother was in an accident with me and I was driving, they looked to see what the tort was in her household for her injury, her tort affected somethings on the insurance. She does not drive, nor was she on her boyfriends policy, but all this came into question. Just throwing this out there. ????? :shock: :shock:
Posted: Fri Feb 01, 2008 01:09 pm Post Subject:
Good morning tony maturo and welcome to the community...I disagree with many of these posts...and think you would more than likely be held responsible because
i am actually listed on the title and registration as a co-borrower, or co-buyer.
I don't think the ''title'' would bear your name unless you are a ''co-owner'' the loan papers etc would have you as a co-borrower, but this is different than being an owner...We co-signed the first vehicles our children purchased as well...but made sure they title was in their names ONLY, we were only on the titles as TOD....Were I you I would double check all of this and if indeed you are a co-owner, I would get this changed...you can do that without changing your loan agreement....Posted: Fri Feb 01, 2008 01:38 pm Post Subject:
Lori, don't you think the insurance company would want a co owner on the policy also as I stated the question in the post prior.
I am curious though about your name being on the title, won't the insurance company want you on the policy?
What are you thoughts on how the insurance company would view this. I know that on our pickup and our car we are both on titles, both on insurance, don't know if you want to go further in detail here or not. I was thinking the insurance company would want both to be on the policy, what are your thoughts?
Posted: Fri Feb 01, 2008 01:49 pm Post Subject:
Lori, don't you think the insurance company would want a co owner on the policy also as I stated the question in the post prior.
yes, they would want him on the policy as an owner meaning he has an interest in the vehicle were it involved in a loss, same as the lein holder, but him being named on the policy (alone) as an owner or additional insured will not open him up to liability..(above and beyond the policy) However being an owner would/could.However, if he is NOT an owner of the vehicle (and merely an co-signer to the note)...he wouldn't have to be...
Posted: Fri Feb 01, 2008 02:37 pm Post Subject:
Gotcha, guess he needs to look at the title as you have suggested and see how he is listed.
Lori,
we were only on the titles as TOD....
What is TOD?
Posted: Fri Feb 01, 2008 03:00 pm Post Subject:
Transfer on death
Posted: Fri Feb 01, 2008 03:02 pm Post Subject:
Okay, never heard the term before.
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