co-signer of auto lease legal obligation if accident
If I co-sign for an auto loan, what is my legal obligation if the one I co-signed for is in an accident? As the co-signer can they come after my assets? Can I protect myself by having me on their car insurance policy as a driver, or as a person of interest?
Re: co-signer of auto lease legal obligation if accident
Co-signing and accepting responsibility for repayment of the debt does not lead to vicarious liability for the operator's negligence. But if you are the owner (i.e., your name appears on the title for the car), then you are liable in many states under a theory of negligent entrustment theory, which is recognized either by statute or case law. Many banks require that the person(s) signing the loan documents also be the owner, so watch out.
Re: co-signer of auto lease legal obligation if accident
Co-signing and accepting responsibility for repayment of the debt does not lead to vicarious liability for the operator's negligence. But if you are the owner (i.e., your name appears on the title for the car), then you are liable in many states under a theory of negligent entrustment theory, which is recognized either by statute or case law. Many banks require that the person(s) signing the loan documents also be the owner, so watch out.
