Can a Co-signer on a Car Loan Be Sued?

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Can a parent be sued if the child is involved in a negligent accident, if they don't live with the parent and the only connection is that the parent co-signed the car loan? They are not a co-registrant or named insured on the policy simply a cosigner.
 
Unlikely. A cosigner can be sued to repay the debt, but that's about it.
 
If the child is over 18, it is unlikely the parents can be held liable.

I say unlikely simply because there is a world of variables. Did you send your child off to do something for you? Was he driving impaired and you knew it? Okay, stuff like this is unlikely, but there is never a clear answer without the complete story to these questions.

Even if you were a joint title holder of the car, you probably still can't be held liable. They would have to prove something was wrong with the car and that it wasn't a driver action.

Of course, this type of incident is exactly what insurance is for. If properly insured, the insurance company will take care of it for you.

Dan
 
If the child is over 18, it is unlikely the parents can be held liable.

I say unlikely simply because there is a world of variables. Did you send your child off to do something for you? Was he driving impaired and you knew it? Okay, stuff like this is unlikely, but there is never a clear answer without the complete story to these questions.

Even if you were a joint title holder of the car, you probably still can't be held liable. They would have to prove something was wrong with the car and that it wasn't a driver action.

Of course, this type of incident is exactly what insurance is for. If properly insured, the insurance company will take care of it for you.

Dan

This was a case where the daughter lives in another state and the father just co-signed the loan to get her a better rate. He's not even on the title or registration.
 
This was a case where the daughter lives in another state and the father just co-signed the loan to get her a better rate. He's not even on the title or registration.

I would say no if his name isn't on the title or registration. If it was sure...it is his car as well as her. They COULD sue him...
 
They could be sued but it is unlikely that they would be held liable. I have a feeling the judge would throw it out.
 
A cosigner can be named as a defendant. The big question is if you proximately caused it and if it is foreseeable along with some other factors. Proximate cause has a long arm but depending on the circumstances, it might not be long enough to reach you.
 
Yes, we always make sure the cosigner is listed and make sure there is proper coverage to cover them in case of a large claim. Some carriers will add the cosigner as and additional insured. Remember the attorneys will go after any deep pocket.
 
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